Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q2 2023 Earnings Presentation
17 slides from Halozyme Therapeutics's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Financial and Operating Results
Second Quarter 2023 Financial and Operating Results NASDAQ: HALO August 8, 2023 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 growth, financial performance (including the Company's financial outlo
Slide 3: Wave 1 and 2 Revenue Growth Continues, Wave 3 Revenue Just Beginning
Wave 1 and 2 Revenue Growth Continues Wave 3 Revenue Just Beginning Strong Financial Performance Q2 2023 BREAKING NEWS • Total revenue increased 45% YOY to $221M • Non-GAAP diluted EPS of $0.74 HVAI study successful First Wave 3 Products On/Nearing Market Feasibility of rapid Launch delivery of 10mL
Slide 4: What We Do: License Drug Delivery Platforms and Commercialize Specialty Products
What We Do: License Drug Delivery Platforms to Partners, and Commercialize Specialty Products Drug Delivery Platform Technologies Commercial Portfolio ENHANZE® Auto-Injectors Specialty Products Commercially-Validated Commercialized & Sub-Cutaneous Delivery development stage devices for broad • 6 glo
Slide 5: ENHANZE: Durable Revenue Potential and Strong Future Growth Opportunities
ENHANZE®: Durable Revenue Potential and Strong Future Growth Opportunities Waves 1 & 2 Wave 3 Wave 4 Wave 5 5 Globally-Approved 1 FDA-Approved Product 10 Product Products 3 Product Candidates Candidates Launched 2023: USA Launch Potential Launch Potential 2025-2027 2027+ 2 in Phase 3 New nominations
Slide 6: Subcutaneous Drug Delivery Can Improve Patient Access and Decrease Healthcare System Costs
Subcutaneous Drug Delivery Can Improve Patient Access and Decrease HealthCare System Costs Potential benefits for Potential benefits for Healthcare System Patients and Caregivers (providers, nurses, pharmacists, payers) ▪ Potential to decrease healthcare costs: ▪ Decreased treatment burden – Less us
Slide 7: Royalty Revenues: Projecting 23-26% Growth in 2023
WAV E WAV E 01 02 03 04 Royalty Revenues: Projecting 23-26% Growth in 2023 Annual Total Royalty Revenue* ($M) Quarterly Royalty Revenue* ($M) 23-26% YoY Increase in 2023 2Q Record Royalties: 31% YoY Increase $445-$455 $111.7 $106.0 $360.5 $99.6 $99.6 $85.3 $69.6 $62.6 $58.6 $203.9 $45.8 $36.9 $88.6
Slide 8: Wave 2: DARZALEX SC/FASPRO
WAV E 01 02 03 04 Wave 2: DARZALEX SC/FASPRO® Record Royalty Revenue as Growth Continues Total DARZALEX® Sales IV+SC ($B) 1 DARZALEX FASPRO® Share of Total US DARZALEX® Sales2 18 $16.7 $16.0 88% 90% 16 $15. 85% 86% 83% $13. 0 80% 14 76% 72% $12. 8 66% 12 $9. 0 10 $8. 9 8 $6. 0 6 $4. 0 4 2 2 0 2Q 3Q
Slide 9: Wave 2: Phesgo
WAV E 01 02 03 04 Wave 2: Phesgo® Shorter Treatment Time Duration Results in 85% Patient Preference Phesgo® Reduces Administration Time and Costs Phesgo® Global Conversion Rate1 Treatment Option Total Time ~2.5-7.5 Q2’23 hours ~20-38 minutes • 85% of patients preferred Phesgo for subcutaneous admini
Slide 10: Wave 3: Four Potential SC Launches 2023-2025
WAV E 01 02 03 04 Wave 3: Four Potential SC Launches 2023-2025 Products Disease Areas Milestones SC Launch/Potential Launch1 gMyasthenia Gravis FDA approval June 20, 2023 IV and SC Commercial launch July 2023 Launched 2023 VYVGART Hytrulo FDA CIDP gMyasthenia Gravis: U.S. APPROVED Positive data anno
Slide 11: Wave 4 Pipeline
Wave 4 Pipeline 2 Partnered Products in Phase 3 10 Partnered Products in Development Current Program/Product Indications Phase 1 Phase 2 Phase 3 Filed Wave 4 Amivantamab (Janssen) Non-Small Cell Lung Cancer Nivolumab+Relatlimab (BMS) Melanoma ARGX-117 (argenx) Multifocal motor neuropathy Teprotumuma
Slide 12: High-Volume Auto-Injector Feasibility Study Successful
High-Volume Auto-Injector Feasibility Study Successful BR EA Study Design KIN • N = 23 healthy volunteers G Study Results NE • Investigating feasibility and tolerability of SC delivery by high volume auto- injector WS • ~30 second delivery of 10mL of ENHANZE plus immunoglobulin G 10% Results • Feasi
Slide 13: Halozyme Strategic and Capital Allocation Priorities
Halozyme Strategic and Capital Allocation Priorities Invest to Maximize Continue to Return Capital Identify Opportunities Revenue Growth and to Shareholders for External Growth Durability • ENHANZE® Second Plan: December 2021 • Continue to evaluate • HVAI and auto-injector $750M 3-year share buyback
Slide 14: 2Q 2023 Financial Highlights
2Q 2023 Financial Highlights $ U.S. in Millions, except EPS (unaudited) 2Q 2023 2Q 2022 % Change Royalties $111.7 $85.3 31% Product sales, net $73.9 $46.3 60% Collaboration Revenues $35.4 $20.7 71% Total Revenues $221.0 $152.4 45% Cost of sales $50.1 $33.9 48% Amortization of intangibles $17.8 $11.4
Slide 15: 2023 Updated Financial Guidance Highlights
2023 Updated Financial Guidance Highlights Previous Current 2022 2023 2023 • 25-28% YOY growth Total Revenue $660.1M $815M - $845M $825M - $845M • Total collaboration revenue expected to be close to $100M • 23-26% YOY growth Royalty Revenue $360.5M $445M - $455M $445M - $455M • Continued DARZALEX® a
Slide 16: GAAP to Non-GAAP Reconciliation: Diluted EPS
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 acquisition. (2) Amount represents severance cost and
Slide 17: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ U.S. in Thousands GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA $ U.S. in Millions Dollar amounts, as presented, are rounded. Consequently, totals may not add up. 17
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