Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q3 2023 Earnings Presentation
19 slides from Halozyme Therapeutics's earnings presentation, Nov 6, 2023
Slide 1: Third Quarter 2023 Financial and Operating Results
Third Quarter 2023 Financial and Operating Results NASDAQ: HALO November 6, 2023 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 growth, financial performance (including the Company's financial outlo
Slide 3: Halozyme Announces $250 million Accelerated Share Repurchase
Halozyme Announces $250 million Accelerated Share Repurchase Completing current $750 million share repurchase • 2021 share repurchases $150 million • 2022 share repurchases $200 million • 2023 share repurchases $400 million • $150 million completed in 1Q 2023 • NEW: $250 million to be executed immed
Slide 4: Halozyme 3Q 2023 Financial and Operating Results
Halozyme 3Q 2023 Financial and Operating Results Support Another Record Year 3Q 2023 Financial Performance • Total revenue of $216M • Royalty revenue of $114.4 million • GAAP Diluted EPS of $0.61 • Non-GAAP diluted EPS of $0.75 • Reiterates full year 2023 total revenue and royalty revenue guidance F
Slide 5: Strong Progress Toward Multiple Near-Term Launches and New Royalty Revenue Streams
Strong Progress Toward Multiple Near-Term Launches and New Royalty Revenue Streams Estimated U.S. and EU Launches Approvals in 2023 Positive Phase 3 Data Readouts (2024-2025) VYVGART® Hytrulo VYVGART® Hytrulo VYVGART® Hytrulo (gMG) ( in U.S.) (CIDP) (CIDP) Tecentriq® SC Atezolizumab SC Tecentriq® SC
Slide 6: ENHANZE: A Royalty Growth Story
ENHANZE®: A Royalty Growth Story Projected Royalty Revenue Potential $1B Drivers Drivers Current Portfolio + Wave 5 ENHANZE® Products Co-formulation patents Waves 1, 2, 3 and 4 submitted 2022-2027 ENHANZE® Products NEW rHuPH20 with Granted and extended room temp. $445-455M submitted co- formulation
Slide 7: Our Goal: To Expand Current and Add New Partners
Our Goal: To Expand Current and Add New Partners New ENHANZE® Partnership High-Volume Auto-Injector ▪ Non-exclusive agreement ▪ Presented full data from our HVAI ▪ Upfront payment clinical study at 13th annual Partnership ▪ Milestones Opportunities in Drug Deliver (“PODD”) ▪ Single digit royalties c
Slide 8: Royalty Revenues: Projecting 23-26% Growth in 2023
WAV E 01 02 03 04 Royalty Revenues: Projecting 23-26% Growth in 2023 Annual Total Royalty Revenue* ($M) Quarterly Royalty Revenue* ($M) 23-26% YoY Increase in 2023 3Q Record Royalties: 15% YoY Increase $445-$455 $114.4 $111.7 $106.0 $99.6 $99.6 $360.5 $85.3 $69.6 $58.6 $62.6 $203.9 $45.8 $36.9 $88.6
Slide 9: Wave 2: Launch Growth Drivers DARZALEX SC/FASPRO
WAV E 01 02 03 04 Wave 2: Launch Growth Drivers DARZALEX SC/FASPRO® Revenue Growth and Share Continues DARZALEX FASPRO® Share of Total Total DARZALEX® Sales IV+SC ($B) 1 US DARZALEX® Sales2 18 $17.0 $16.3 16 $15.1 90% 91% 86% 88% $13.7 83% 85% 14 80% $12.0 76% 72% 12 66% $9.9 10 $8.0 8 $6.0 6 $4.2 4
Slide 10: Wave 2: Phesgo
WAV E 01 02 03 04 Wave 2: Phesgo® 37% Conversion of Perjeta; YTD Perjeta Revenue of $3B Swiss francs1 Phesgo® Reduces Administration Time and Costs Phesgo® Global Conversion Rate2 44 Launch Countries Treatment Option Total Time 37% ~2.5-7.5 Q3’23 hours ~20-38 minutes • 85% of patients preferred Phes
Slide 11: Wave 3: Following VYVGART Hytrulo Launch, 3 Additional Potential Launches 2023-2025
WAV E 01 02 03 04 Wave 3: Following VYVGART® Hytrulo Launch, 3 Additional Potential Launches 2023-2025 Launch/ Products Indication Milestones Potential Launch1 gMyasthenia Gravis FDA approval June 20, 2023 IV and SC VYVGART® FDA APPROVED CIDP Positive data announced July 17, 2023 2023: U.S. Launch H
Slide 12: Wave 4 Pipeline
Wave 4 Pipeline 2 Products in Phase 3 and 1 Product in Phase 2 10 Products in Development Current Program/Product Indications Phase 1 Phase 2 Phase 3 Filed Wave 4 Amivantamab (Janssen) Non-Small Cell Lung Cancer Nivolumab+Relatlimab (BMS) Melanoma N6LS bnAb (ViiV) HIV (treatment) Cabotegravir (ViiV)
Slide 13: Halozyme Developed and Tested a Customizable HVAI
Halozyme Developed and Tested a Customizable HVAI Leveraging ENHANZE® and Auto-Injector Know-How Final Results Study Results 21/23 (91%) indicated no pain/mild pain 22/23 (96%) would have this injection with HVAI again HVAI injection (10 mL/~30 sec) was well-tolerated and all measured injection para
Slide 14: Halozyme Strategic and Capital Allocation Priorities
Halozyme Strategic and Capital Allocation Priorities Invest to Maximize Continue to Return Identify Opportunities Revenue Growth and Capital to Shareholders for External Growth Durability Second Plan: December 2021 • ENHANZE® • Continue to evaluate $750M 3-year share buyback • HVAI and auto-injector
Slide 15: 3Q 2023 Financial Highlights
3Q 2023 Financial Highlights $ U.S. in Millions, except EPS (unaudited) 3Q 2023 3Q 2022 % Change Royalties $114.4 $99.6 15% Product sales, net $86.6 $61.4 41% Collaboration Revenues $15.0 $48.0 (69)% Total Revenues $216.0 $209.0 3% Cost of sales $54.8 $47.3 16% Amortization of intangibles $20.3 $27.
Slide 16: 2023 Updated Financial Guidance Highlights
2023 Updated Financial Guidance Highlights Previous Current 2022 2023 2023 Total Revenue $660.1M $825M - $845M $825M - $845M • 25-28% YOY growth • 23-26% YOY growth Royalty Revenue $360.5M $445M - $455M $445M - $455M • Continued DARZALEX® and Phesgo® uptake and full year device royalty contribution
Slide 17: 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 acquisition. (2) Amounts relate to amortization of the
Slide 18: 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 acquisition. (2) Amount represents severance cost and
Slide 19: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ U.S. in Thousands GAAP to Non-GAAP Reconciliation: EBIT DA and $ U.S. in Millions Adjusted EBITDA Dollar amounts, as presented, are rounded. Consequently, totals may not add up. 19
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