Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q4 2024 Earnings Presentation
23 slides from Halozyme Therapeutics's earnings presentation, Feb 18, 2025
Slide 1: Fourth Quarter and FY 2024 Financial & Operating Results
Halozyme Therapeutics, Inc. Fourth Quarter and FY 2024 Financial & Operating Results NASDAQ: HALO February 18, 2025 1
Slide 2: Forward-Looking Statements
Forward-Looking Statements In addition to historical information, the statements set forth in this presentation include forward-looking statements including, without limitation, statements concerning the Company’s expected future financial performance and growth rates (including the Company’s 2025 f
Slide 3: Multiple 2024 Milestones Positioning Halozyme for Strong Growth in 2025 and Beyond
Multiple 2024 Milestones Positioning Halozyme for Strong Growth in 2025 and Beyond 2024 Highlights o Total revenue exceeded $1 billion, growing 22% over prior year o Raised financial guidance twice during the year and full year 2024 results exceeded guidance for royalty revenue, adjusted EDITDA and
Slide 4: Record Fourth Quarter and Full Year 2024 Financial Results
Record Fourth Quarter and Full Year 2024 Financial Results With Significant Growth Opportunities 4Q 2024 Results Full Year 2024 Results $298M $170M $1,015M $571M Total Revenue Royalty Revenue Total Revenue Royalty Revenue +30% +40% +22% +27% $196M $1.06 $1.26 $632M $3.43 $4.23 Adjusted GAAP Non-GAAP
Slide 5: DARZALEX SC with ENHANZE Driving Robust Long-Term Growth
DARZALEX® SC with ENHANZE®, With >90% U.S. Share of Sales, Driving Robust Long-Term Growth Total DARZALEX® Sales IV+SC ($B) 1 Year-over-Year Growth 7% 9% 12% 14% 20% 21% 33% 43% U.S. annual exit SC share of sales2 76% 86% 92% 95% Approvals 2020 2021 2024 2025E Initial approval for AL amyloidosis in
Slide 6: PHESGO With 100% Use SC with ENHANZE, On Trajectory to $3.4B Sales
PHESGO®, With 100% Use SC with ENHANZE®, On Trajectory to $3.4B Sales PHESGO® Projected Sales ($B)1 Year-over-Year Growth 6% 10% 21% 20% 67% 71% 133% Conversion in 55 Launch Countries 46% >50% 1 Analysts’ consensus from Evaluate Ltd February 2025 6
Slide 7: VYVGART & VYVGART Hytrulo SC Projected for Blockbuster Growth to >$6B in 2028
VYVGART® & VYVGART® Hytrulo SC Projected for Blockbuster Growth to >$6B in 2028 Quarterly Net Sales for VYVGART & VYVGART Hytrulo20% ($M) Analyst Projections for VYVGART & VYVGART Hytrulo ($B)1 (ONLY gMG and CIDP) Quarter-over-Quarter Growth Year-over-Year Growth 29% 16% 20% 20% 21% 6% 14% 31% 22% 2
Slide 8: Multiple Potential Drivers for Additional VYVGART Hytrulo SC Future Growth
Multiple Potential Drivers for Additional VYVGART® Hytrulo SC Future Growth Studies evaluated VYVGART® & VYVGART® Hytrulo (IV & SC)1 Current studies evaluating VYVGART® Hytrulo (SC)1 Thyroid Eye Disease (TED) Significant runway for Systemic Sclerosis growth with future Antibody Mediated Rejection (A
Slide 9: Robust Pipeline of Approved Near-Term Growth Catalysts Represent ~$25B Opportunity in 2028
Robust Pipeline of Approved Near-Term Growth Catalysts Represent ~$25B Opportunity in 2028 Amivantamab SC Approved September 2024 Approved September 2024 Approved December 2024 Projected to be Approved 10-minute subcutaneous ~7-minute subcutaneous ~5 minute subcutaneous injection ~3-5 minute subcuta
Slide 10: ENHANZE Royalties Key Revenue Driver, Projecting $1B Royalty Revenue in 2027
ENHANZE® Royalties Key Revenue Driver Projecting $1B of Royalty Revenue in 2027 ~$20B Projected Sales ~$35B Projected Sales in 20281 in 20281 2013 - 2020 Launches 2023 - 2024 Launches 2 3 Projected Launches Amivantamab SC Licensees are responsible for development and commercialization 1 PHESGO, HERC
Slide 11: Licensed Partner Products
Licensed Partner Products Anticipated Royalty Terms and Rates for Select Products Co-Formulation Patent Status First 33 34 35 40 31 32 30 24 28 25 29 23 27 26 Product Name 20 20 20 20 20 20 20 20 20 20 20 20 20 20 & Anticipated Impact Commercial Sale Herceptin SC Granted (royalty to expiry 07/2030)
Slide 12: 4Q 2024 Financial Highlights
4Q 2024 Financial Highlights $ in Millions, except EPS (unaudited) 4Q 2024 4Q 2023 % Change Royalties $170.4 $122.1 40% Product sales, net $79.4 $79.6 (0%) Collaboration revenues $48.2 $28.4 70% Total Revenues $298.0 $230.0 30% Cost of sales $42.1 $52.3 (20%) Amortization of intangibles $17.8 $17.8
Slide 13: FY 2024 Financial Highlights
FY 2024 Financial Highlights $ in Millions, except EPS (unaudited) FY 2024 FY 2023 % Change Royalties $571.0 $447.9 27% Product sales, net $303.5 $300.9 1% Collaboration revenues $140.8 $80.5 75% Total Revenues $1,015.3 $829.3 22% Cost of sales $159.4 $192.4 (17%) Amortization of intangibles $71.0 $
Slide 14: 2025 Financial Guidance Highlights
2025 Financial Guidance Highlights 2024 2025 Guidance • 13-21% YOY growth Total Revenue $1,015M $1,150 - $1,225M • Total revenue is expected to decrease sequentially from 4Q 2024 to 1Q 2025, as no milestones are planned in 1Q • Milestones are expected to be weighed in the second half of the year • 2
Slide 15: Multi-Year Guidance Shows Projected Doubling of Key Guidance Metrics 2024-2028
Multi-Year Guidance Shows Remarkable Projected Doubling of Key Guidance Metrics 2024-2028, Ten Years After First ENHANZE® Product Launch Total Revenue Royalty Revenue 2024 and 2028 2024 and 2028 $1,735 - $1,860 77% 106% $1,150 - $1,200 $1,015 $571 Adjusted EBITDA Non-GAAP Diluted EPS 2024 and 2028 2
Slide 16: Share Repurchases Capitalizes on Attractive Value
Shares Repurchases Capitalizes on Attractive Value o Deployed $1.55 billion to share repurchases since 2019 o On average ~$250M per year o Average purchase price per share of $31.46 in 2019 to 2023 • Reduced our diluted Average Repurchase $18.03 $23.05 $40.96 $44.44 $37.44 $TBD1 weighted average sha
Slide 17: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA 17
Slide 18: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliati on: EBITDA and Adjusted EBITDA (1) Amount relates to fair value gain on contingent liability due to the due to the termination of the TLANDO license agreement in September 2023 (“TLANDO Termination”). (2) Amount relates to inventory write-off
Slide 19: GAAP to Non-GAAP Reconciliation: Diluted EPS
$ in Thousands, except per share amounts (unaudited) GAAP to Non-GAAP Reconciliation: Diluted EPS (1) Adjustments relate to taxes for the reconciling items, as well as excess benefits or tax deficiencies from stock-based compensation, and the quarterly impact of other discrete items. (2) Adjustment
Slide 20: GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS
$ in Thousands, except per share amounts (unaudited) GAAP to Non-GAAP Reconciliation : Net Income and Diluted EPS (1) Amount represents incremental costs including legal fees, accounting fees and advisory fees incurred for the prior year Antares acquisition. (2) Amounts relate to amortization of the
Slide 21: Appendix
| Appendix 21
Slide 22: Strong Momentum in 2024 Resulting in Raised Multi-Year Projections
Strong Momentum in 2024 Resulting in Raised Multi-Year Projections 2023 2024 2023-2028 $M, except EPS (unaudited) 2025 2026 2027 2028 Actual8 Actual8 CAGR7 Royalties1 447.9 571.0 725 – 750 900 – 940 1,100 – 1,150 1,150 – 1,200 21% Product Sales2 300.9 303.5 325 – 345 400 – 430 425 – 470 455 – 500 10
Slide 23: ENHANZE Pipeline Expansion in 2025, Multiple Opportunities For New Royalty Revenue Streams
ENHANZE® Pipeline Expansion in 2025, Multiple Opportunities For New Royalty Revenue Streams Current Program/Product Study Indication Phase 1 Phase 2 Phase 3 Filed Nivolumab+Relatlimab (BMS) Melanoma TAK-881 (Takeda) Immune N6LS bnAb (ViiV) HIV (treatment) Multifocal ARGX-117; Empasiprubart (argenx)
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