Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Investor Presentation (January 2024)
31 slides from Halozyme Therapeutics's investor presentation, Jan 17, 2024
Slide 1: Halozyme Financial Update
Halozyme Financial Update January 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements In addition to historical information, the statements set forth in this presentation include forward-looking develop and commercialize a high volume auto-injector, regulatory approval requirements, unexpected statements including, without limitation, statements concerning
Slide 3: Agenda
Agenda Welcome and Regulatory Disclosures Tram Bui, Head of Investor Relations Agenda and Introductions Helen Torley, President and CEO Our Vision Helen Torley, President and CEO Innovations: Past, Present and Future Mark Snyder, Chief Legal Officer Helen Torley, President and CEO Durable Revenue Gr
Slide 4: Today's Presenters
Today’s Presenters Helen Torley M.B. Mark Snyder Ch.B., MRCP Chief Legal Officer President and CEO 30+ years corporate law intellectual 10 years, President and CEO property, M&A and regulatory matters 30+ years drug development, commercialization and licensing expertise Nicole LaBrosse Tram Bui Chie
Slide 5: Halozyme Innovation Results in Growth and Durability of our Revenues
Halozyme Innovation Results in Growth and Durability of our Revenues De-risked & Proven Business Model Positioned for Durable Revenue Growth High Royalty Durability of Broadly Diversified Probability Revenue Revenue Compatible Revenue of Technical Inflection Success Point Now 10/11 success 7 approve
Slide 6: Agenda
Agenda Welcome and Regulatory Disclosures Tram Bui, Head of Investor Relations Agenda and Introductions Helen Torley, President and CEO Our Vision Helen Torley, President and CEO Innovations: Past, Present and Future Mark Snyder, Chief Legal Officer Helen Torley, President and CEO Durable Revenue Gr
Slide 7: Our Vision
Our Vision De ate ve v l o op Inn Today Our Vision Many breakthrough Breakthrough therapies require therapies will the patient’s life to fit the patient’s life fit the treatment Pa se rtn n er i c e L 7
Slide 8: Commercially Validated Subcutaneous Drug Delivery Technologies
Commercially Validated Subcutaneous Drug Delivery Technologies ENHANZE® Small Volume Auto-Injector with Drug (SVAI) 13 Commercial licensing agreements 1 approved proprietary SVAI 7 approved partnered products Approved in 100+ countries + 2 approved partner SVAI products >40 million devices supplied
Slide 9: Commercial Product Sales
Commercial Product Sales Diversification of Revenue ~$100M est. in sales in 2023; + ~$25M in sales/year 25% CAGR next 5 years Breakeven achieved in 2023 9
Slide 10: Our Vision
Our Vision Subcutaneous delivery with ENHANZE can result in… Decreased treatment burden De Treatment from hours te ve va l to minutes3 o op Inn Today Our Vision Lower infusion related Many breakthrough Breakthrough reactions (IRRs)1 therapies require therapies will the patient’s life to fit the pati
Slide 11: Subcutaneous Drug Delivery Can Decrease Healthcare System Costs and Constraints
Subcutaneous Drug Delivery Can Decrease Healthcare System Costs and Constraints Impacting Patients Current Challenges1 SC Delivery with ENHANZE of infusion centers surveyed ✓ Reduced Use of Healthcare Resources 50% needed major investment to keep up with patient treatment needs. (Daratumumab®)2 • Pa
Slide 12: ENHANZE: Durable Revenue and Strong Growth Opportunities
ENHANZE: Durable Revenue and Strong Growth Opportunities Today’s Focus: Waves 1, 2 and 3 Waves 1 & 2 Wave 3 5 Globally-Approved Products Launched 2023 2024-2025 Projected Launch Atezolizumab SC: US & EU Ocrelizumab SC 1 2 3 Nivolumab SC Amivantamab SC Launched 2013-2020 Projected Launch 2023-2025 Ro
Slide 13: Agenda
Agenda Welcome and Regulatory Disclosures Tram Bui, Head of Investor Relations Agenda and Introductions Helen Torley, President and CEO Our Vision Helen Torley, President and CEO Innovations: Past, Present and Future Mark Snyder, Chief Legal Officer Helen Torley, President and CEO Durable Revenue Gr
Slide 14: Halozyme's ENHANZE Patent Portfolio Reflects Culture of Pioneering Innovation
Halozyme’s ENHANZE Patent Portfolio Reflects Culture of Pioneering Innovation Halozyme’s ENHANZE patent portfolio includes patents covering: • ENHANZE composition of matter • ENHANZE manufacturing process and products produced from the process • Collaboration patents covering combinations of partner
Slide 15: Halozyme's Typical ENHANZE License Terms
Halozyme’s Typical ENHANZE License Terms* Period for payment of royalties and milestones is the longer of: • Fixed period from first commercial sale of licensee drug + ENHANZE (at least ten years) • Expiration date of collaboration patent(s) covering the licensee drug + ENHANZE Royalty rate paid on
Slide 16: Halozyme Collaboration Patents
Halozyme Collaboration Patents Existing and future collaborations are expected to result in additional patentable innovations Collaboration patents typically extend the period for which Halozyme receives royalties Collaboration patents typically maintain the royalty rate at the original starting rat
Slide 17: Co-formulation Patents are the Result of Licensee Collaborations
Co-formulation Patents are the Result of Licensee Collaborations Co-formulation patents Patents are granted for Patents are valid 20 years cover the licensed product, innovations that are "non- from earliest filing date including: obvious" or when there • Patents take on average • Product formulatio
Slide 18: Products Granted Co-formulation Patents Due to Non-Obvious Innovation or Result
Products Granted Co-formulation Patents Due to Non-Obvious Innovation or Result Reason for Patent Grant Non-obvious combination, dosage and/or method of administration Unexpected stability of co-formulation Improved response rate with SC versus IV Reduced infusion related reactions 18
Slide 19: Co-formulation Patents May Extend Royalty Payment Period
Co-formulation Patents May Extend Royalty Payment Period Clinical Trials BLA Process Royalty-Bearing Commercial Sales 3-5 Years 6-10 Months Data Readout – First Sale Innovation Fixed Time Period Device Engineering /Development At Least 10 Years from First Commercial Sale File Patent Extended No Co-f
Slide 20: Co-formulation Patents May Also Maintain Royalty Rate: US Illustrative Example
Co-formulation Patents May Also Maintain Royalty Rate: US Illustrative Example Commercial Sales (US) Starting Co-formulation Royalty Rate patents typically: Additional US Royalties With Co-form Patent Rate Maintained Maintain the royalty Royalty Rate (%) Reduced rate, and Royalty Rate Extend the pay
Slide 21: Licensed Partner Products – Anticipated Royalty Term and Rate for Waves 1, 2, 3
Licensed Partner Products – Anticipated Royalty Term and Rate for Waves 1, 2, 3 Co-formulation Patent Status First Product Name & Anticipated Impact Commercial Sale 2024 2027 2030 2040 Herceptin SC Granted (royalty to expiry 07/2030) Mabthera SC Granted (royalty to expiry 09/2030) Phesgo Granted (ro
Slide 22: Disruptive HVAI Innovations Create New Opportunities
Disruptive HVAI Innovations Create New Opportunities HVAI delivery of volumes up to 10 mL in ≤ 30 seconds for drug products combined with ENHANZE® New HVAI Patents Pending Designs and form factors Function and mechanisms of action Injection forces and speeds Treatment methods and therapeutic formula
Slide 23: Agenda
Agenda Welcome and Regulatory Disclosures Tram Bui, Head of Investor Relations Agenda and Introductions Helen Torley, President and CEO Our Vision Helen Torley, President and CEO Innovations: Past, Present and Future Mark Snyder, Chief Legal Officer Helen Torley, President and CEO Durable Revenue Gr
Slide 24: 2023 and 2024 Guidance
2023 and 2024 Guidance 2023 2024 Growth Drivers Estimate1 Guidance3 Strong revenue growth…. $915M to $985M • Total collaboration revenue expected to increase compared to 2023 Total Revenue $827M to $832M inclusive of new deals >10% to 15% YoY • Growth in Product Sales from Xyosted, API sales project
Slide 25: Looking Ahead: 2024 and Beyond Total and Royalty Revenue
Looking Ahead: 2024 and Beyond Total and Royalty Revenue Total Revenue ($M) Total Royalties ($M) +20% +3% +30% +2% +22% 1,515 to 1,565 to +27% 975 to 1,000 to +13% 1,640 1,690 1,025 1,0502 +15% 1,265 to +19% 750 to +15% 1,040 to 1,365 790 915 to 595 to 1,115 827 to 985 500 to 625 832 445 to 525 450
Slide 26: Royalty Revenues Guidance Driven by ENHANZE Partnered Products
Royalty Revenues Guidance Driven by 10 ENHANZE Partnered Products, 7 Approved and 3 Additional Projected Approvals by 2025 1,000 to 1,050 Total Royalties ($M) 975 to 1,025 750 to 790 595 to 620 500 to 525 ENHANZE Wave 3 Products Projected to Launch in 2025: Nivolumab SC & Amivantamab SC 445-450 ENHA
Slide 27: Looking Ahead: 2024 and Beyond
Looking Ahead: 2024 and Beyond Adjusted EBITDA ($M) Non-GAAP Diluted EPS ($ per share) +27% +5% +26% +3% +32% 1,125 to +29% 6.70 to 6.90 to 1,070 to 1,250 7.30 7.50 +21%2 1,195 +15%3 855 to +34% 5.30 to +31% 5.80 935 4.10 to 655 to 535 to 705 3.55 to 4.50 585 2.77 to 3.90 425 to 430 2.80 2023 2024 2
Slide 28: Looking Ahead: 2024 and Beyond
Looking Ahead: 2024 and Beyond $M, except EPS 2023 2024 2023-2028 2025 2026 2027 2028 Estimate7 Guidance CAGR8 Royalties1 $445 – $450 500 – 525 595 – 620 750 – 790 975 – 1,025 1,000 – 1,050 14% Product Sales2 $300 – $301 285 – 300 315 – 335 385 – 415 410 – 455 435 – 480 9% Collaboration Revenue3 $80
Slide 29: Agenda
Agenda Welcome and Regulatory Disclosures Tram Bui, Head of Investor Relations Agenda and Introductions Helen Torley, President and CEO Our Vision Helen Torley, President and CEO Innovations: Past, Present and Future Mark Snyder, Chief Legal Officer Helen Torley, President and CEO Durable Revenue Gr
Slide 30: Our Vision
Our Vision De ate ve v l o op Inn Today Our Vision Many breakthrough Breakthrough therapies require therapies will the patient’s life to fit the patient’s life fit the treatment Pa se rtn n er i c e L 30
Slide 31: GAAP to Non-GAAP Reconciliations
GAAP to Non-GAAP Reconciliations5 1Amounts relate to fair value gain on contingent liability due to the termination of the TLANDO license agreement in September 2023 (“TLANDO Termination”). 2Amounts relate to inventory write-off due to TLANDO Termination and amortization of the inventory step-up ass
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