Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q2 2024 Earnings Presentation
18 slides from Halozyme Therapeutics's earnings presentation, Aug 6, 2024
Slide 1: Second Quarter 2024 Financial & Operating Results
Halozyme Therapeutics, Inc. Second Quarter 2024 Financial & Operating Results NASDAQ: HALO August 6, 2024 1
Slide 2: Forward Looking Statements
Forward Looking Statements In addition to historical information, the statements set forth in this presentation include unexpected levels of revenues (including royalty and milestone revenue received from our forward-looking statements including, without limitation, statements concerning the collabo
Slide 3: Momentum Continues with Strong Q2 2024 Results
Momentum Continues with Strong Q2 2024 Results $231M $125M Innovative Leader in Drug Delivery Royalty Total Revenue Revenue +5% +12% Strong IP Portfolio New Product and Indication Approvals $137M $0.91 $250M Adjusted Non-GAAP EBITDA1 ASR Diluted EPS1 Regulatory and Clinical Advancements +19% Complet
Slide 4: New ENHANZE EU Patent Enhances Royalty Revenue Growth Profile
New ENHANZE® EU Patent Enhances Royalty Revenue Growth Profile Highlights of New ENHANZE® European Patent, EP 4269578 • New patent covering the ENHANZE® rHuPH20 product licensed to all Halozyme ENHANZE® licensees • Broad geographic coverage extends to March 6, 2029, beyond expiration of other compos
Slide 5: Operational and Commercial Achievements in 2Q 2024
Operational and Commercial Achievements in 2Q 2024 New Product and Upcoming Potential Regulatory and Clinical Indication Approvals Approvals Advancements • argenx’s VYVGART® Hytrulo in U.S. • Ocrelizumab SC (U.S.), • BMS filed for regulatory approval for CIDP September 13, 2024 for Nivolumab SC in E
Slide 6: Wave 2: Growth Drivers - DARZALEX SC/FASPRO
Wave 2: Growth Drivers DARZALEX SC/FASPRO® Achieved Share Gains in Front-Line Setting and All Regions Total DARZALEX® Sales IV+SC ($B) 1 Growth Drivers 94% SC Conversion in U.S.2 (as of June 2024) Share gains in all lines of therapy and $17.3 $16.2 front-line setting $14.8 4.6 points across all line
Slide 7: Wave 2: Growth Drivers - Phesgo within Roche Portfolio
Wave 2: Growth Drivers Phesgo® is Growth Driver within Roche Portfolio Growth Drivers1 Phesgo® Reduces Administration Time and Costs Ongoing geographic expansion to 51 countries Treatment Option Total Time 41% overall conversion1 ~2.5-7.5 hours 1H 2024 Phesgo® Sales Sales (CHFm) Growth CER TOTAL 799
Slide 8: Projecting $1B of Royalty Revenue in 2027
Projecting $1B of Royalty Revenue in 2027 Wave 1 & 2 Wave 3 $20B $35B 1 4 Projected Sales of IV and SC by 2028 Projected Sales of IV and SC by 2028 Projected Sales Projected Sales of SC of IV and IVbyand 2028 Launched 5 Globally-Approved Products 5 5 2024-2025 Projected Launches Atezolizumab SC: U.S
Slide 9: ENHANZE Wave Pipeline Poised to Support Growth Trajectory
ENHANZE® Wave 4 Pipeline Poised to Support Growth Trajectory 6 Products in Development 2 Product in Phase 3 1 Product in Phase 2 Current Program/Product Study Indication Phase 1 Phase 2 Phase 3 Filed Wave 4* Nivolumab+Relatlimab (BMS) Melanoma TAK-881 (Takeda) Immune N6LS bnAb (ViiV) HIV (treatment)
Slide 10: Capital Allocation Priorities
Capital Allocation Priorities Invest to Maximize Revenue Return Capital to Identify Opportunities for Growth and Durability Shareholders External Growth ✓ Completed $250M ASR in 2Q ✓ ENHANZE® ✓ Continue to evaluate 2024, returning $1.3B to opportunities to accelerate and shareholders in share buybac
Slide 11: 2Q 2024 Financial Highlights
2Q 2024 Financial Highlights $ in Millions, except EPS (unaudited) 2Q 2024 2Q 2023 % Change Royalties $124.9 $111.7 12% Product sales, net $78.9 $73.9 7% Collaboration revenues $27.5 $35.4 (22)% Total Revenues $231.4 $221.0 5% Cost of sales $39.6 $50.1 (21)% Amortization of intangibles $17.8 $17.8 -
Slide 12: 2024 Financial Guidance Highlights
2024 Financial Guidance Highlights 2024 2023 Guidance1 • 13-22% YOY growth • Total collaboration revenue expected to increase compared to 2023 inclusive of new deals Total Revenue $829M $935M - $1,015M • Product sales growth from XYOSTED®; projecting API sales decline due to price reductions resulti
Slide 13: Royalty Revenue Guidance Driven by ENHANZE Partnered Products
Royalty Revenue Guidance Driven by 10 ENHANZE Partnered Products, 8 Approved and 2 Additional Projected Product Approvals by 2025 Auto-Injector Total Royalties Opportunity Wave 1 Wave 2 Wave 3 Nivolumab SC Amivantamab New Launch in EU SC VYVGART Tecentriq SC in Tecentriq SC in VYVGART Tecentriq SC i
Slide 14: Looking Ahead: 2024 and Beyond
Looking Ahead: 2024 and Beyond 2024 2023 2023-2028 $M, except EPS (unaudited) Guidance 2025 2026 2027 2028 Actual8 CAGR7 Updated 06/06 Royalties1 447.9 520 – 555 650 – 675 810 – 850 1,045 – 1,095 1,100 – 1,150 20% Product Sales2 300.9 285 – 300 315 – 335 385 – 415 410 – 455 435 – 480 9% Collaboratio
Slide 15: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA 15
Slide 16: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliatio n: EBITDA and Adjusted EBITDA 1) Amount relates to fair value gain on contingent liability due to the due to the termination of the TLANDO license agreement in September 2023 (“TLANDO Termination”). 2) Amount relates to inventory write-off du
Slide 17: GAAP to Non-GAAP Reconciliation: Diluted EPS
$ in Thousands, except per share amounts (unaudited) GAAP to Non-GAAP Reconciliation: Diluted EPS 1) Amounts relate to amortization of the inventory step-up associated with purchase accounting for the Antares acquisition. 2) Adjustments relate to taxes for the reconciling items, as well as excess be
Slide 18: GAAP to Non-GAAP Reconciliation: Net Income
$ in Thousands, except per share amounts (unaudited) GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS 1) Amount represents incremental costs including legal fees, accounting fees and advisory fees incurred for the prior year Antares acquisition. 2) Amounts relate to amortization of the in
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