Is Ultragenyx Pharmaceutical (RARE) stock Halal?

Ultragenyx Pharmaceutical is a biopharmaceutical company that focuses on the development and commercialization of novel products for the treatment of rare and ultra-rare genetic diseases. The company's primary function is to address unmet medical needs by working on advanced treatments targeting conditions that often lack effective therapies. Ultragenyx is primarily involved in the biotechnology sector, impacting areas such as gene therapy, small molecule drugs, and advanced biologic therapies. For Muslim investors, though, the most pressing question is simpler: is Ultragenyx Pharmaceutical a Halal investment?

Is Ultragenyx Pharmaceutical Shariah compliant?

No. In the October 2026 screening Ultragenyx Pharmaceutical (RARE) does not pass AAOIFI screening: it fails the interest-bearing debt screen. Technology companies rarely fail AAOIFI screening on what they sell. Software, hardware and digital services are permissible business activities, so for a company like Ultragenyx Pharmaceutical the Shariah question moves to the balance sheet: how much of its market value sits in interest bearing debt, how much of its cash earns Riba in conventional deposits, and whether incidental income from impermissible sources creeps past 5% of revenue. These are exactly the ratios AAOIFI Shariah Standard No. 21 polices, and they move every month with the share price.

Does Ultragenyx Pharmaceutical pass the business activity test?

The activity screen is only part of the picture this month: Ultragenyx Pharmaceutical currently fails the interest-bearing debt screen, so the overall verdict is not compliant regardless of the business itself. The watch item for technology names is incidental: cash returns and platform content can carry impermissible elements, which AAOIFI tolerates only below the thresholds.

Is Ultragenyx Pharmaceutical's income Halal?

Yes, within AAOIFI's tolerance. Ultragenyx Pharmaceutical's income from non-permissible sources stays below 5% of revenue in the October 2026 screening.

Does Ultragenyx Pharmaceutical meet AAOIFI's debt and investment ratio requirements?

Not in full. Interest bearing debt currently exceeds the 30% cap, measured against a market capitalisation of $1.48B (market data as of 1 October 2026), while the other ratio stays within it. One breach is enough to fail the screening; the ratios are reassessed monthly under our Shariah Supervisory Board.

Why do other halal screeners show a different verdict for Ultragenyx Pharmaceutical?

Screeners can disagree without either being wrong. AAOIFI Shariah Standard No. 21, which Tabadulat applies, measures interest bearing debt and investments against market capitalisation with a 30% ceiling. MSCI and FTSE measure them against total assets with a 33% ceiling, and S&P and Dow Jones Islamic use a multi year average of market capitalisation. Data dates differ too, because each provider reads filings and prices on its own schedule. The same company can therefore pass one standard and fail another in the same month. Tabadulat publishes one answer, the AAOIFI result as of October 2026, and re-screens it every month.

Tabadulat is an ADGM regulated brokerage whose license covers Shari'a Compliant Regulated Activities, as the FSRA permission names them. New to the terminology? Gharar and Maysir, Sukuk, Zakat and purification are all explained in plain English.

New to the screening method? Read Why a Halal Stock Screener Matters for Halal Investing