Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q4 2022 Earnings Presentation
18 slides from Halozyme Therapeutics's earnings presentation, Feb 21, 2023
Slide 1: Fourth Quarter and Full Year 2022 Financial and Operating Results
Fourth Quarter and Full Year 2022 Financial and Operating Results NASDAQ: HALO February 21, 2023 Halozyme Confidential and Proprietary 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 (including the Company's financial outlook for 2
Slide 3: 2022 Results and 2023 Financial Guidance
2022 Results and 2023 Financial Guidance 2022 2023 • 23-28% YoY growth • Product Sales expected to increase due to full year Antares Total Revenue $660.1M $815M - $845M • contribution and increasing ENHANZE® API demand Total collaboration revenue expected to be relatively flat compared to 2022, mile
Slide 4: Royalty Revenues: Projecting 23-26% Growth in 2023, Driven by ENHANZE and Device Royalties
Royalty Revenues: Projecting 23-26% Growth in WAV E 01 02 03 04 2023, Driven by ENHANZE® and Device Royalties Annual Total Royalty Revenue* ($M) Quarterly Royalty Revenue* ($M) $445-$455 $106.0 $99.6 $360.5 $85.3 $69.6 $62.6 $58.6 $203.9 $45.8 $36.9 $32.0 $88.6 $69.9 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 2019
Slide 5: Wave 2 Revenue Growth Drivers: Continued DARZALEX SC/FASPRO Share and Revenue Growth
Wave 2 Revenue Growth Drivers: Project WAV E 01 02 03 04 Continued DARZALEX SC/FASPRO® Share and Revenue Growth DARZALEX FASPRO® Share of Total Total DARZALEX® Sales IV+SC ($B) 1 US DARZALEX® Sales2 18 $16.5 16 $15.3 $14.1 14 $12.8 85% 86% $11.3 83% 12 80% 76% $9.6 72% 10 66% $8.0 8 $6.0 6 $4.2 4 2
Slide 6: 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 10 Product Products 4 Product Candidates Candidates Launch Potential Launch Potential Launch Potential 2023-2025 2025-2027 2027+ Efgartigimod SC* New nominations from 8 in/
Slide 7: Wave 3: Four Potential Launches 2023-2025
WAV E 01 02 03 04 Wave 3: Four Potential Launches 2023-2025 Products Disease Areas Milestones Potential Launch1 FDA PDUFA date extended to June 20, 2023 IV APPROVED gMyasthenia Gravis 2023 Efgartigimod for (gMG) Additional SC with ENHANZE® Other Indications gMyasthenia Gravis indication data readout
Slide 8: ENHANZE Partner Product Development Pipeline
ENHANZE® Partner Product Development Pipeline Wave 3 Pipeline Current Program/Product Indications Phase 1 Phase 2 Phase 3 Filed Wave 3 Efgartigimod (argenx) gMG Atezolizumab (Roche) NSCLC Ocrelizumab (Roche) Multiple sclerosis Nivolumab (BMS) RCC Nivolumab (BMS) Melanoma Efgartigimod (argenx) CIDP E
Slide 9: ENHANZE Partner Product Development Pipeline
ENHANZE® Partner Product Development Pipeline Wave 4 Pipeline Current Program/Product Indications Phase 1 Phase 2 Phase 3 Filed Wave 4 Amivantamab (Janssen) Solid malignancies Nivolumab+Relatlimab (BMS) Solid tumors Phase 3 to start soon ARGX-117 (argenx) Multifocal motor neuropathy Teprotumumab-trb
Slide 10: NEW in 2023: ENHANZE Plus Auto-Injector Facilitates 5mL to 10mL High Volume
NEW in 2023: ENHANZE® Plus Auto-Injector Facilitates 5mL to 10mL Halozyme High Volume Auto-Injector + Technology and Know How Auto-Injector (5mL to 10mL) • Creates space for fluid Customizable technology to 2023: Complete dispersion meet partner needs clinical feasibility testing • Reduces backpress
Slide 11: Testosterone Replacement Therapy Portfolio: Targeting >$100M XYOSTED Revenue in 2023
Testosterone Replacement Therapy Portfolio: Targeting to Generate >$100M XYOSTED Revenue in 2023 FOCUS FOCUS OPPORTUNITY ~8.5M TRX prescribed for testosterone replacement therapy in 2022 Once-a-week dosing 2X/daily oral Growing ~5% YOY administration Virtually painless subcutaneous injection using S
Slide 12: 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 • Focus on integration • Auto-injector innovation $750M 3-year share buyba
Slide 13: 4Q 2022 Financial Highlights
4Q 2022 Financial Highlights $ U.S. in Millions, except EPS (unaudited) 4Q 2022 4Q 2021 % Change Royalties $106 $62.6 69% Product sales, net $61.2 $27.1 126% Collaboration Revenues $14.4 $12.3 17% Total Revenues $181.5 $102.0 78% Cost of sales $42.1 $21.6 95% Amortization of intangibles $4.6 -- -- R
Slide 14: FY 2022 Financial Results
FY 2022 Financial Results $ U.S. in Millions, except EPS (unaudited) FY 2022 FY 2021 % Change Royalties $360.5 $203.9 77% Product sales, net $191.0 $104.2 83% Collaboration Revenues $108.6 $135.2 (20)% Total Revenues $660.1 $443.3 49% Cost of sales $139.3 $81.4 71% Amortization of intangibles $43.1
Slide 15: 2023 Financial Guidance Highlights
2023 Financial Guidance Highlights 2022 2023 • 23-28% YoY growth • Product Sales expected to increase due to full year Antares Total Revenue $660.1M $815M - $845M • contribution and increasing ENHANZE® API demand Total collaboration revenue expected to be relatively flat compared to 2022, milestones
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 $ U.S. in Millions, except EPS (unaudited) acquisition
Slide 17: GAAP to Non-GAAP Reconciliation: EBITDA
GAAP to Non-GAAP Reconciliation: EBITDA $ U.S. in Millions, except EPS (unaudited) Dollar amounts, as presented, are rounded. Consequently, totals may not add up. Halozyme Confidential and Proprietary 17
Slide 18: ENHANZE: Achieved Supporting 12 Partner Study Initiations in 2022, As Projected
ENHANZE®: Achieved Supporting 12 Partner Study Initiations in 2022, As Projected Study Starts in 2022 Indications Phase 1 Phase 2 Phase 3 Filed Amivantamab (Janssen) Solid malignancies Ocrelizumab (Roche) Multiple sclerosis Nivolumab (BMS) Melanoma Nivolumab+Relatlimab (BMS) Melanoma Phase 3 to star
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