Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q1 2024 Earnings Presentation
17 slides from Halozyme Therapeutics's earnings presentation, May 7, 2024
Slide 1: First Quarter 2024 Financial & Operating Results
Halozyme Therapeutics, Inc. First Quarter 2024 Financial & Operating Results NASDAQ: HALO May 7, 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements In addition to historical information, the statements set forth in this presentation include unexpected levels of revenues (including royalty and milestone revenue received from our forward-looking statements including, without limitation, statements concerning the collabo
Slide 3: Confidence in Full Year 2024 Outlook
Confidence in Full Year 2024 Outlook Sustainable royalty revenue growth ✓ 1Q 2024 marks 15th consecutive quarter of >15% YOY royalty growth ✓ Five potential Wave 3 product launches between 2023-2025 Visibility of milestone payments ✓ Contributions from Wave 1,2,3 and 5 products in 2024 • 1Q: $14M re
Slide 4: Operational and Commercial Achievements in 1Q 2024
Operational and Commercial Achievements in 1Q 2024 • argenx’s VYVDURA® for gMG in Japan Product Approvals • Takeda’s HYQVIA® for CIDP in U.S and EU • Roche’s Tecentriq® SC in EU • VYGART® Hytrulo for CIDP (U.S), June 2024 Upcoming Potential • Ocrelizumab SC (EU), mid-2024 Approvals • Ocrelizumab SC
Slide 5: Wave 2: Growth Drivers - DARZALEX SC/FASPRO
Wave 2: Growth Drivers DARZALEX SC/FASPRO® Achieved Share Gains in Front-Line Setting and All Regions Total DARZALEX® Sales IV+SC ($B) 1 Growth Drivers 93% SC Conversion in U.S. (as of March 2024) $16.1 $17.1 Share gains in all lines of therapy and $14.8 front-line setting $13.2 6 points across all
Slide 6: Wave 2: Growth Drivers - Phesgo Second Strongest Growth Driver of Roche
Wave 2: Growth Drivers Phesgo® is Second Strongest Growth Driver of Roche Portfolio Growth Drivers1 Phesgo® Reduces Administration Time and Costs Ongoing geographic expansion Treatment Option Total Time 41% overall conversion2 Reaching 25% conversion in U.S. ~2.5-7.5 hours 1Q 2024 Phesgo® Sales Sale
Slide 7: Projecting $1B of Royalty Revenue in 2027
Projecting $1B of Royalty Revenue in 2027 Wave 1 & 2 Wave 3 $20B $35B 1 1 Projected Sales of IV and SC by 2028 Projected Sales of IV and SC by 2028 Projected Sales of IV and SC by 2028 Projected Sales of IV and 5 Globally-Approved Products Launched 2023 4 2024-2025 Projected Launches Atezolizumab SC
Slide 8: ENHANZE Wave Pipeline Poised to Support Growth Trajectory
ENHANZE® Wave 4 Pipeline Poised to Support Growth Trajectory 6 Products in Development 2 Products in Phase 3 1 Product in Phase 2 Current Program/Product Study Indication Phase 1 Phase 2 Phase 3 Filed Wave 4* Nivolumab+Relatlimab (BMS) Melanoma TAK-881 (Takeda) Immune N6LS bnAb (ViiV) HIV (treatment
Slide 9: Capital Allocation Priorities
Capital Allocation Priorities Invest to Maximize Revenue Return Capital to Identify Opportunities for Growth and Durability Shareholders External Growth ✓ Initiated $250M ASR in 4Q23 to ✓ ENHANZE® ✓ Continue to evaluate be completed in 2024, for a total opportunities to accelerate and of $400M deplo
Slide 10: 1Q 2024 Financial Highlights
1Q 2024 Financial Highlights $ in Millions, except EPS (unaudited) 1Q 2024 1Q 2023 % Change Royalties $120.6 $99.6 21% Product sales, net $58.6 $60.8 (4)% Collaboration revenues $16.7 $1.7 882% Total Revenues $195.9 $162.1 21% Cost of sales $28.3 $35.2 (19)% Amortization of intangibles $17.8 $17.8 -
Slide 11: 2024 Financial Guidance Highlights
2024 Financial Guidance Highlights 2023 2024 Guidance1 • 10-19% YOY growth • Total collaboration revenue expected to increase compared to 2023 inclusive of new deals Total Revenue $829M $915M - $985M • Product sales growth from XYOSTED®; projecting API sales decline due to price reductions resulting
Slide 12: Our Vision
Our Vision Subcutaneous delivery with ENHANZE® can result in… Decreased treatment burden Treatment from hours 1 to minutes1 De te ve va l o op Inn Today Our Vision Lower infusion related reactions2 2 Many breakthrough Breakthrough therapies require therapies will the patient’s life to fit the patien
Slide 13: Looking Ahead: 2024 and Beyond
Looking Ahead: 2024 and Beyond $ in Millions, except EPS (unaudited) 2023 2024 2023-2028 2025 2026 2027 2028 Actual Guidance CAGR7 Royalties1 447.9 500 – 525 595 – 620 750 – 790 975 – 1,025 1,000 – 1,050 18% Product Sales2 300.9 285 – 300 315 – 335 385 – 415 410 – 455 435 – 480 9% Collaboration Reve
Slide 14: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA 14
Slide 15: 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 du
Slide 16: GAAP to Non-GAAP Reconciliation: Diluted EPS
$ in Thousands, except per share amounts (unaudited) GAAP to Non-GAAP Reconciliation: Diluted EPS Dollar amounts, as presented, are rounded. Consequently, totals may not add up. (1) Amount represents incremental costs including legal fees, accounting fees and advisory fees incurred for the Antares a
Slide 17: 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 in
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