Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — 39th Annual J.P. Morgan Healthcare Conference (January 2021)
33 slides from Halozyme Therapeutics's conference presentation, Jan 13, 2021
Slide 1: 39th Annual J.P. Morgan Healthcare Conference
39th Annual J.P. Morgan Healthcare Conference Dr. Helen Torley, President and CEO January 13, 2021 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: Momentum Building. Long Growth Runway.
Momentum Building. Long Growth Runway. 3 Technology for converting IV drugs to subcutaneous Commercialized products using our technology Significant potential global sales of 5 approved partner drugs Halozyme royalty revenue projected ~$1B in 2027 1. Estimates from Evaluate Ltd. LLC and Bloomberg (D
Slide 4: The Halozyme Story: A Repositioned Company. Long Growth Runway.
T H E H A L O Z Y M E S T O R Y A Repositioned Company. Long Growth Runway. 4 1 Uniquely positioned, momentum building 2 Scalable, low risk business model 3 Growing portfolio of marketed products 4 Expanding pipeline of future products 5 Strong growth trajectory
Slide 5: What We Do: Platform Technology Facilitating Subcutaneous Delivery
Temporarily degrades extracellular matrix enabling increased fluid flow and dispersion of drugs co-formulated with ENHANZE® W H A T W E D O Platform Technology Facilitating Subcutaneous Delivery of IV Delivered Drugs 5 Long process Uses proprietary Halozyme fully owned rHuPH20 enzyme Syringe needle
Slide 6: Proven Enabling Platform for Facilitating Subcutaneous Delivery of IV Drugs
Health care system resource utilization and cost2,3 Proven Enabling Platform for Facilitating Subcutaneous Delivery of IV Administered Drugs 6 Hospital or Infusion Suite Setting IV SC 0.5-3.5 hours Infusion duration multiple hours1 SC injection duration 3-8 minutes1 ENHANZE® platform Burden on patie
Slide 7: A Repositioned Company. Long Growth Runway.
A Repositioned Company. Long Growth Runway. 7 2005-2018 ENHANZE® Wave 1 2019-2020 ENHANZE® Wave 2 2021+ Multiple Projected Launches Foundation Built • Proprietary technology Repositioned • Restructured, sharpened focus Sustained Growth • Multiple drivers
Slide 8: The Halozyme Story: A Repositioned Company. Long Growth Runway.
T H E H A L O Z Y M E S T O R Y A Repositioned Company. Long Growth Runway. 8 1 Uniquely positioned, momentum building 2 Low risk business model 3 Growing portfolio of marketed products 4 Expanding pipeline of future products 5 Strong growth trajectory
Slide 9: Low Risk Business Model
Low Risk Business Model 1. Target large, attractive markets 2. Potential to deliver strong advantages to partners 5. Returning significant cash to shareholders 3. Diverse revenue streams 9 4. Growing cash flow
Slide 10: Targeting Large Attractive Markets
1. Targeting Large Attractive Markets Market Trends Play to Our Strengths Large Potential Market • Pharma industry shift from oral small molecules to antibody- based approaches – ideal for ENHANZE® platform 10 >79 monoclonal antibodies in late stage trials2 ~550 monoclonal antibodies in early clinic
Slide 11: Building on a Strong Foundation: Partnerships Focused On a Broad Range of Disease Areas
Building on a Strong Foundation: 10 Partnerships Focused On a Broad Range of Disease Areas 11 Partner Year Total Targets Roche 2006 12 Baxalta/Takeda 2007 1 Pfizer 2012 6 Janssen 2014 5 AbbVie 2015 9 Eli Lilly 2015 5 BMS 2017 11 Alexion 2017 4 argenx 2019 6 Horizon 2020 1 Oncology Neurology Autoimmu
Slide 12: ENHANZE: Potential to Deliver Strong Advantages to Partners
2. ENHANZE®: Potential to Deliver Strong Advantages to Partners 12 Advantages Examples of Products Benefiting Reduced treatment burden and healthcare costs Potential for competitive differentiation Potential to combine two therapeutic antibodies in single injection Facilitating higher injection volu
Slide 13: Case Study Demonstrates Success of ENHANZE Platform in Daratumumab SC
2. Case Study Demonstrates Success of ENHANZE® Platform in Daratumumab SC 1. Worldwide sales estimates from Evaluate Ltd. (December 2020) 2. ASCO 2019, COLUMBA trial: intravenous versus subcutaneous daratumumab. Presentation by Maria-Victoria Mateos, MD, PhD, University Hospital of Salamanca-IBSA at
Slide 14: DARZALEX Faspro SC: Successful Uptake of Subcutaneous Formulation in United States
2. DARZALEX Faspro® SC: Successful Uptake of Subcutaneous Formulation in United States 1. Symphony Health (subscription data) 2. “Subcutaneous versus intravenous daratumumab in patients with relapsed or refractory multiple myeloma (COLUMBA): a multicentre, open-label, non- inferiority, randomised, p
Slide 15: Role with Our ENHANZE Partners Supports Our Lean, Scalable Model
2. Role with Our ENHANZE® Partners Supports Our Lean, Scalable Model 15 • Oversee production and release of API to partner • Advise on co-formulation • Manufacture co-formulated product for clinical and commercial use • Advise on PK, PD, regulatory path and clinical trial design • Design and execute
Slide 16: Diverse Revenue Stream; New Launches to Drive Expanded Royalty Stream
3. Diverse Revenue Stream; New Launches to Drive Expanded Royalty Stream 16 Royalties Product Sales • API Cost Plus 20% • Hylenex® (hyaluronidase human injection) Sales • On average mid-single digit • Upfront: $30-$40M for 1-2 targets to access technology • Development: 40-60% as development progres
Slide 17: Growing Cash Flow
4. Growing Cash Flow 17 $M EBITDA -$100 $0 $100 $200 $300 2019 2020E 2021E
Slide 18: Return Significant Capital to Shareholders
5. Return Significant Capital to Shareholders 18 Capital Allocation Priorities 1 MaintainStrong Balance Sheet 2 3ShareRepurchases Internal and External Growth • Cash & cash equivalents $346.7M at Q3 2020 • Continue to fund ENHANZE® • Potential M and A expanding drug delivery platforms • $550M progra
Slide 19: The Halozyme Story: A Repositioned Company. Long Growth Runway.
T H E H A L O Z Y M E S T O R Y A Repositioned Company. Long Growth Runway. 19 1 Uniquely positioned, momentum building 2 Scalable, low risk business model 3 Growing portfolio of marketed products 4 Expanding pipeline of future products 5 Strong growth trajectory
Slide 20: Wave 2 Launches: Five Products Commercialized in Global Markets
Wave 1 and 2 Launches: Five Products Commercialized in Global Markets 1. Estimates from Evaluate Ltd. LLC and Bloomberg (December 2020) 20 Projected Partner Product Revenues1 $18B $22B 2020 2024 Wave 2 Launches Drive Royalty Growth DARZALEX SC 5 Launched Products by End 2020 Wave 1 / / Wave 2 / Wave
Slide 21: Significant Royalty Revenue Growth Projected in 2021
$0M $50M $100M $150M $200M 2019 2020 2021 $80-$85M1 Significant Royalty Revenue Growth Projected in 2021 21 Royalty Revenue 3 5 5 • DARZALEX FASPRO® and SCLaunches • Phesgo® U.S. Marketed products at year end +~100% • Phesgo® EU 1. Based on 2020 financial guidance communicated on November 2, 2020
Slide 22: The Halozyme Story: A Repositioned Company. Long Growth Runway.
T H E H A L O Z Y M E S T O R Y A Repositioned Company. Long Growth Runway. 22 1 Uniquely positioned, momentum building 2 Scalable, low risk business model 3 Growing portfolio of marketed products 4 Expanding pipeline of future products 5 Strong growth trajectory
Slide 23: Strong ENHANZE Pipeline Growth and Progress in 2020
Strong ENHANZE® Pipeline Growth and Progress in 2020 23 Program / Product Indications Phase 1New Starts Phase 1 Ongoing Phase 2 Trial Starts Phase 3 Trial Starts ARGX-117 (argenx) Multifocal motor neuropathy Nivolumab+ipilimumab (BMS) Solid tumors Anti-TIM3 (BMS) Solid tumors Amivantamab (Janssen) S
Slide 24: Continued Pipeline Progress in 2021 and Beyond Drives Multiple Additional Potential Launches
Continued Pipeline Progress in 2021 and Beyond Drives Multiple Additional Potential Launches 24 >10 product approvals >5 products in Phase 3 2025 Goal: Number of Products in Development By Latest Stage 2020 2021 2023 2025 2027 Phase 1 Phase 3 5 22 8 Ongoing New Wave 3 Potential Launches Wave 4 Poten
Slide 25: Additional Growth Opportunity From New Partner Agreements and New Targets
Additional Growth Opportunity Potential From Signing New Partner Agreements and Current Partners Selecting New Targets 25 Total Number of Targets Targets Not Yet Selected 10 Partner Agreements >20 of 60 still to be selected 60 targets in total, all agreements 22 approved or in clinic end 2021 Potent
Slide 26: The Halozyme Story: A Repositioned Company. Long Growth Runway.
T H E H A L O Z Y M E S T O R Y A Repositioned Company. Long Growth Runway. 26 1 Uniquely positioned, momentum building 2 Scalable, low risk business model 3 Growing portfolio of marketed products 4 Expanding pipeline of future products 5 Strong growth trajectory
Slide 27: Projected Milestones Drive Revenue and Free Cash Flow
2019 2020 2021 2022 2023 End 2018 Projection End 2019 Updated Projection End 2020 Projection Projected Milestones Drive Revenue and Free Cash Flow 3 Year Forward Milestone Revenue Projection Includes development, commercial and new agreement upfront milestones 27 Expected: ~$180M $400 - $450M $225 -
Slide 28: Projecting Potential for ~$1B Royalty Revenue in 2027
Projecting Potential for ~$1B Royalty Revenue in 2027 Based on Product Launch Waves 1-4 28 2020 2027 Royalty Revenue ~$1B $80-$85M1 Projection based on approved products and assumes global approval and launches for 16 additional products in multiple indications. Includes projections for subcutaneous
Slide 29: Multiple Revenue Growth Drivers Beyond 2027
Multiple Revenue Growth Drivers Beyond 2027 29 2021-2027 + Wave 3 and 4 Launches 2027+ Revenue Drivers Contract Structure • Minimum royalty term of 10 years Wave 5 launches. Sources: • Current Partners (~20 new target nominations) • New Partners New-Coformulation patents can extend royalty runway Ne
Slide 30: 2021 Financial Guidance
2021 Financial Guidance 2020 Latest Guidance 2021 2021 Drivers Net Revenue $265M – $275M $375-$395M • Growth of 40%-45% primarily driven by higher revenues from royalties • Royalties revenues projected to double • Product sales projected to increase significantly, driven by bulk API orders • Revenue
Slide 31: Potential Value-Driving Events in 2021
Potential Value-Driving Events in 2021 31 Continue product launch momentum (Wave 2): • DARZALEX® SC: US and International. Potential Japan approval. Potential US AL amyloidosis approval. Phesgo® US and EU Launch 4 products in Phase 3 in 6 Indications: Potential Wave 3 launches 5 NEW phase 1starts re
Slide 32: In Summary: A Repositioned Company. Long Growth Runway.
I N S U M M A R Y A Repositioned Company. Long Growth Runway. 32 • Impressive partnerships • Strong cash flow • Royalty growth • Multiple drivers • Line of sight 1 Uniquely positioned, momentum building 2 Scalable, low risk business model 3 Growing portfolio of marketed products 4 Expanding pipeline
Slide 33: 39th Annual J.P. Morgan Healthcare Conference
39th Annual J.P. Morgan Healthcare Conference Dr. Helen Torley, President and CEO January 13, 2021 3 3
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