Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — 40th Annual J.P. Morgan Healthcare Conference (January 2022)
30 slides from Halozyme Therapeutics's conference presentation, Jan 10, 2022
Slide 1: 40th Annual J.P. Morgan Healthcare Conference
Halozyme Confidential and Proprietary 40th Annual J.P. Morgan Healthcare Conference Dr. Helen Torley, President and CEO January 10, 2022
Slide 2: Forward-Looking Statements
Halozyme Confidential and Proprietary 2 Forward-Looking Statements Note: This presentation contains product names, trademarks and registered trademarks are property of their respective owners In addition to historical information, the statements set forth in this presentation include forward-looking
Slide 3: 2022 Financial Guidance Highlights
Halozyme Confidential and Proprietary 3 2022 Financial Guidance Highlights 2021 2022 Total Revenue $430M-$445M $530M-$560M • ~23-26% growth • Includes one new deal upfront milestone • API and milestone revenue overall similar to 2021 • First time annual revenue >$500M Royalty Revenue ~$200M (est.) ~
Slide 4: Capital Allocation Priorities
Halozyme Confidential and Proprietary 4 Capital Allocation Priorities Invest to Maximize ENHANZE® Growth and Durability Return Capital to Shareholders Identify Opportunities for External growth Potential M&A expanding platform technologies Footer
Slide 5: ENHANZE: A Royalty Growth Story
Halozyme Confidential and Proprietary 5 ENHANZE® A Royalty Growth Story 1 Source : Symphony Health October subscription data (presented with permission) 2 Source: Q2 2021 Johnson & Johnson earnings call transcript DARZALEX FASPRO® with ENHANZE® #1 in US sales of Daratumumab1 DARZALEX® SC with ENHANZ
Slide 6: ENHANZE 2022 Royalty Revenue Projected to Grow ~50% to ~$300M
Halozyme Confidential and Proprietary 6 2027 projection based on approved products and assumes global approval and launches of 20 additional products in multiple indications. Includes projections for subcutaneous versions for targets not currently approved or commercially available. Assumes approved
Slide 7: ENHANZE Patented, Proven Platform Technology Enabling Subcutaneous Delivery
Halozyme Confidential and Proprietary 7 With Subcutaneous Delivery ENHANZE® Patented, Proven Platform Technology Enabling Subcutaneous Delivery of IV Drugs ENHANZE® PlatformIV Drug Delivery Temporarily degrades extracellular matrix enabling increased fluid flow and dispersion of drugs co-formulated
Slide 8: ENHANZE Multiple Revenue Streams, Growth Driven by Recurring Royalties
Halozyme Confidential and Proprietary 8 ENHANZE® Multiple Revenue Streams, Growth Driven by Recurring Royalty Revenues PROJECTED PERCENT OF TOTAL REVENUES 2021 2025 • On average mid-single digit • Duration, in general minimum of 10 years from launch • Upfront • Development • Commercial • API typical
Slide 9: Operating Performance Drives Strong Future Growth Runway
Halozyme Confidential and Proprietary 9 Wave 5Wave 4Wave 3 2021 Operating Performance Drives Strong Future Growth Runway Revenue drivers 2021+ Revenue drivers 2023+ Revenue drivers 2025+ Wave 1 & 2 Launch Potential 2023-2025 13 Products in Phase 1 Launch Potential 2025-2027 5 Globally Approved Produ
Slide 10: $1B Projected Royalty Revenue Potential
Halozyme Confidential and Proprietary 10 2027 Projection based on approved products and assumes global approval and launches of 20 additional products in multiple indications. Includes projections for subcutaneous versions for targets not currently approved or commercially available. Assumes approve
Slide 11: Record Royalty Revenue in 2021 With >100% Growth YoY
Halozyme Confidential and Proprietary 11 0 50 100 150 200 2019 2020 2021 M ill io n s >100% YOY growth Wave 1 and 2 Launches Record Royalty Revenue in 2021 With >100% Growth YoY 1. Halozyme reported results 2. Based on Halozyme estimate as of January 10, 2022 Royalty Revenue $88.6M1 Waves 1 2 3 4 $6
Slide 12: DARZALEX FASPRO/DARZALEX SC Potential for Royalties to More than Double
Halozyme Confidential and Proprietary 12 DARZALEX FASPRO®/DARZALEX® SC Potential for Royalties to More than Double 2021 to 2025 1Analysts consensus obtained from Evaluate Ltd December 2021 2 Halozyme estimate based on Janssen reported sales Q1-Q3 2021 and data from Symphony Health 3 Symphony Health
Slide 13: Wave 3 Pipeline Key Products
Halozyme Confidential and Proprietary 13 Wave 3 Pipeline 3 Key Products With Parent Product Projected at >$20B Revenue in 2025(1) 1 Analysts consensus estimates obtained from Evaluate Ltd. December 2021 2 Halozyme estimated launch time frames based on historical precedents Waves 1 2 3 4 Potential to
Slide 14: Efgartigimod: First Potential Wave 3 Launch
Halozyme Confidential and Proprietary 14 1 Analysts consensus obtained from Evaluate Ltd December 2021 2 argenx SE conference call to discuss FDA approval December 17, 2021 Analysts’ consensus revenue projection: ~$2.5B in 2026, with wide range(1) Potential first-in-class anti-FcRn for serious auto-
Slide 15: Halozyme Assessed Drivers of Conversion: Efgartigimod SC
Halozyme Confidential and Proprietary 15 Halozyme Assessed Drivers of Conversion First Potential Efgartigimod SC Indication with ENHANZE® Myasthenia Gravis in 2023 Efgartigimod SC DARZALEX® SC Growth brand for company Competitive situation where differentiation key Potential for reduced treatment bu
Slide 16: Diverse, Blockbuster Products Potential SC Launches
Halozyme Confidential and Proprietary 16 Diverse, Blockbuster Products Potential SC Launches 2025-2027 Excludes CAP256V2LS (CAPRISA): Phase 1 only 1 Based on all analyst consensus estimates for Wave 1-4 products available via Evaluate Ltd. as of December 2021 Analysts’ Consensus Revenue For All Pare
Slide 17: ViiV Healthcare and Halozyme Partnering Goal for HIV
Halozyme Confidential and Proprietary 17 365 Pills/Year ViiV Healthcare and Halozyme Partnering Goal To Reduce Treatment Days for Patients with HIV 1 GSK Investor Day presentation June 2021 2 GSK , Meet GSK Management Getting ahead of HIV November 2021 Waves 1 2 3 4 ≤ 4 SC injections/Year Long -Acti
Slide 18: Broad Applicability of ENHANZE Platform = Opportunity
Halozyme Confidential and Proprietary 18 Monoclonal antibodies Antibody Fragments antibodies Bi-specific antibodies Small Molecules Potential Benefits IV to SC for Competitive Differentiation Co-formulation IP Oral to SC for compliance SC/IM to SC Extended dosing Approved DARZALEX FASPRO® Products i
Slide 19: 2025 Goal: Approved SC ENHANZE Products Generating Royalty Revenues
Halozyme Confidential and Proprietary 19 2025 Goal 10 Approved SC ENHANZE® Products Generating Royalty Revenues, Multiple Waves to Come Revenue Growth Drivers 2025+ ≥10 SC Products with ENHANZE® Approved ~10 SC Products with ENHANZE® in Phase 3 Development ~10 SC Products with ENHANZE® in Phase 1,2
Slide 20: New Longer IP rHuPH20 Opportunity
Halozyme Confidential and Proprietary 20 New Longer IP rHuPH20 Opportunity to Increase and Extend Halozyme Revenue Durability New rHuPH20, with extended room temperature stability Patent protected to 2032 Europe 2034 US For current and new partners seeking new option for patient self- administration
Slide 21: $1B Projected Royalty Revenue Potential Drivers
Halozyme Confidential and Proprietary 21 2027 Projection based on approved products and assumes global approval and launches of 20 additional products in multiple indications. Includes projections for subcutaneous versions for targets not currently approved or commercially available. Assumes approve
Slide 22: Why the Traditional Patent Cliff Dynamic Does Not Apply to ENHANZE
Halozyme Confidential and Proprietary 22 Why The Traditional Patent Cliff Dynamic Does Not Apply to ENHANZE® No third-party biosimilar company can target the $1B potential revenue with just one biosimilar product at patent expiry >20 products drive Halozyme ~$1B potential Project multiple SC product
Slide 23: API Supply Strategy Designed to Retain and Expand Partners
Halozyme Confidential and Proprietary 23 Why the Traditional Patent Cliff Dynamic Does Not Apply to ENHANZE® A P I S U P P L Y S T R A T E G Y Designed to Retain and Expand Current and New Partners Established Safety Profile ENHANZE® safety track record in >500,000 post-marketing patients Reliable L
Slide 24: Multiple Royalty Growth Revenue Drivers in 2027 and Beyond
Halozyme Confidential and Proprietary 24 If no co-formulation patent granted or, if granted, depending on specific agreement terms for each partner, potential for Royalty Revenue step down by 50% in 2024 (EU) and 2027 (US) Multiple Royalty Growth Revenue Drivers in 2027 and Beyond Footer Drivers of
Slide 25: Capital Allocation Priorities
Halozyme Confidential and Proprietary 25 Capital Allocation Priorities Invest to Maximize ENHANZE® Growth and Durability Return Capital to Shareholders Identify Opportunities for External Growth Potential M&A expanding platform technologies Footer
Slide 26: Forward Milestone Revenue Projection
Halozyme Confidential and Proprietary 26 3 Year Forward Milestone Revenue Projection Pipeline and New Deal Progress Drives Significant Revenue Includes development, commercial and new agreement upfront milestones and other collaboration revenue. Updated through December 2021. E n d 2 0 1 8 P ro je c
Slide 27: Capital Return Plan
Halozyme Confidential and Proprietary 27 Capital Return Plan Footer 2019 2020 2021 2022 1 st P la n 2 n d P la n December 2021 • $750 million 3-year share buyback announced • Up to $250M by end of 2022, inclusive of $150M ASR initiated December 2021 November 2019 • $550 million 3-year share buyback
Slide 28: 2022 Financial Guidance Highlights
Halozyme Confidential and Proprietary 28 2022 Financial Guidance Highlights 2021 2022 Total Revenue $430M-$445M $530M-$560M • ~23-26% growth • Includes one new deal upfront milestone • API and milestone revenue overall similar to 2021 • First time annual revenue >$500M Royalty Revenue ~$200M (est.)
Slide 29: GAAP to Non-GAAP Reconciliation: 2021 and 2022 EPS Guidance
Halozyme Confidential and Proprietary 29 GAAP to Non-GAAP Reconciliation: 2021 and 2022 EPS Guidance (1) In the third quarter 2021, the Company recognized a non-cash tax benefit of approximately $142 million related to the release of substantially all of its valuation allowance against its deferred
Slide 30: 40th Annual J.P. Morgan Healthcare Conference
Halozyme Confidential and Proprietary 40th Annual J.P. Morgan Healthcare Conference Dr. Helen Torley, President and CEO January 10, 2022
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