HALOZYME THERAPEUTICS, INC.HALO

HALOZYME THERAPEUTICS, INC. Goodwill & Intangibles Disclosure

10-KFiled Feb 17, 20262 min read
Goodwill and Intangible Assets, net
Goodwill
A summary of the activity impacting goodwill is presented below (in thousands):
Balance as of December 31, 2024
$416,821 
Goodwill acquired
163,539 
Balance as of December 31, 2025
$580,360 
Intangible Assets, net
Our acquired intangible assets are amortized using the straight-line method over their estimated useful lives of seven to fifteen years. The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2025 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $207,021 $194,979 
XYOSTED proprietary product10136,200 49,098 87,102 
Hypercon developed technology platform
15230,000 1,831 228,169 
Customer relationships
15470,000 3,743 466,257 
Trade name
155,000 40 4,960 
Total intangible assets, net(1)
$1,243,200 $261,733 $981,467 
(1)    An impairment charge of $48.7 million was recognized during the year ended December 31, 2025 resulting in the full impairment of the ATRS-1902 IPR&D intangible asset. The impairment charge resulted from a strategic decision to discontinue the development of ATRS-1902 due to strategic initiatives executed in the quarter ended December 31, 2025.
The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of December 31, 2024 (in thousands).
Weighted Average Useful Life (in years)
Gross Carrying ValueAccumulated AmortizationNet Carrying Value
Auto-injector technology platform
7$402,000 $149,592 $252,408 
XYOSTED proprietary product10136,200 35,478 100,722 
Total infinite-lived intangible assets, net
$538,200 $185,070 $353,130 
ATRS-1902 (IPR&D)
Indefinite
48,700 
Total intangible assets, net
$401,830 
Estimated future annual amortization of finite-lived intangible assets is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.
Year
Amortization Expense
2026
$118,049 
2027
118,049 
2028
118,049 
2029
83,314 
2030
60,620 
Thereafter483,386 
Total$981,467 

Historical Timeline

Fiscal YearFiled
2025Feb 17, 2026Showing above
2024Feb 18, 2025
2023Feb 20, 2024
2022Feb 21, 2023

About Goodwill & Intangibles Disclosures

Goodwill and intangible asset disclosures reveal the premium paid in acquisitions and how management assesses whether that premium retains its value. Since goodwill is no longer amortized under US GAAP, the annual impairment test is the only mechanism that adjusts carrying values downward — making the assumptions behind that test critically important for investors.

Key signals: a history of goodwill impairments suggests management consistently overpays for acquisitions. Watch the gap between reporting unit fair value and carrying amount — when fair value exceeds carrying amount by less than 10-20%, a small decline in business performance could trigger a write-down. For finite-lived intangibles, examine useful life assumptions across customer relationships, technology, and trade names; aggressive estimates inflate near-term earnings. Compare total intangibles-to-total-assets ratios against peers to assess acquisition dependency. Rising goodwill as a percentage of equity can signal balance sheet fragility.

Other Available Disclosures

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