Slide 1: First Quarter 2021 Financial Results Presentation
First Quarter 2021 Financial Results Presentation May 5, 2021
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: Continued Strong Royalty Growth Primarily Driven by DARZALEX SC Launch
Continued Strong Royalty Growth Primarily Driven by DARZALEX® (daratumumab) SC Launch Quarterly Royalty Revenue ($M) Annual Royalty Revenue ($M) 119% year-over-year growth and 15% sequential growth in Q1 2021 driven by DARZALEX® SC utilizing ENHANZE® 36.9 32.0 89 23.9 17.2 70 16.8 15.8 Q4 Q1 Q2 Q3 Q
Slide 4: Five Partner Products Commercialized in Global Markets: Wave 1 and 2 Launches
Five Partner Products Commercialized in Global Markets: Wave 1 and 2 Launches Wave 1 / / Wave 2 / DARZALEX® SC 4
Slide 5: Project 16 Products In Development by YE 2021
Project 16 Products In Development by YE 2021 Phase 1 Phase 1 Phase 2 Phase 3 Current Program / Product Indications New Starts Ongoing Trial Starts Trial Starts Teprotumumab-trbw (Horizon) Thyroid Eye Disease New in Q1 N6LS bnAb (VRC) HIV (treatment) New in Q1 ARGX-117 (argenx) Multifocal motor neur
Slide 6: Projected Milestones Drive Revenue and Free Cash Flow
Projected Milestones Drive Revenue and Free Cash Flow 3 Year Forward Milestone Revenue Projection 2019 2020 2021 2022 2023 End 2018 $225 - $300M Projection Actual: $183M End 2019 $350 - $450M Updated Projection Actual: $123M End 2020 $400 - $450M Projection Includes development, commercial and new a
Slide 7: Continue to Return Significant Capital to Shareholders
Continue to Return Significant Capital to Shareholders Capital Allocation Priorities 1 Maintain Strong Balance Sheet 2 Share Repurchases 3 Internal and External Growth • Cash & cash equivalents $764M at • $550M repurchase • Continue to fund March 31, 2021 program 2019-2022 ENHANZE® • Convertible deb
Slide 8: First Quarter 2021 Revenue Highlights
First Quarter 2021 Revenue Highlights1 $ U.S. in Millions (unaudited) Q1 2021 Q1 2020 % Change Total Revenue $89.0 $25.4 -- Royalty Revenue $36.9 $16.8 119% Product Sales (incl. bulk rHuPH20 and ENHANZE® Drug Product Sales, and $21.8 $8.1 167% Hylenex® (Hyaluronidase Human Injection)) Collaboration
Slide 9: First Quarter 2021 Financial Highlights
First Quarter 2021 Financial Highlights1 $ U.S. in Millions, except EPS (unaudited) Q1 2021 Q1 2020 % Change Total Revenue $89.0 $25.4 -- Total Operating Expense $38.3 $28.6 34% Cost of Product Sales $18.2 $5.8 -- R&D Expense $9.0 $10.2 (11%) SG&A Expense $11.1 $12.6 (12%) Operating Income $50.7 ($3
Slide 10: 2021 Financial Guidance
2021 Financial Guidance 2021 Comment - Guidance is unchanged and represents growth of 40% to 48%. - Revenues from royalties projected to double Net Revenue $375 - $395M - Product sales projected to increase 50-60% driven by bulk API orders - Revenues under collaborative agreements in a similar range
Slide 11: Potential Value-Driving Events in 2021
Potential Value-Driving Events in 2021 Continued product launch momentum (Wave 2): • DARZALEX® SC: US and International Phesgo® US and EU Launch 4 products in Phase 3 in 7 Indications: Potential Wave 3 launches 5 NEW phase 1 starts resulting in 12 ongoing Phase 1: Potential Wave 4 launches New partn
Slide 12: Q1 2021 Financial Results Appendix
Q1 2021 Financial Results Appendix 12
Slide 13: GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS
GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS $ U.S. in thousands, except per share amounts (unaudited)1 Three Months Ended March 31, 2021 2020 GAAP Net Income (Loss) $ 27,895 $ (6,103) Adjustments: Inducement expense related to convertible note 20,960 — Share-based compensation 4,923
Slide 14: GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS 2021 Guidance
GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS 2021 Guidance $ U.S. in Millions, except EPS (unaudited)1 2021 2020 GAAP Net Income (Loss) $ 190 - 210 $ 129.1 Adjustments: Inducement expense related to convertible note .................................. 21 - 21 — Share-based compensation