Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — 38th Annual J.P. Morgan Healthcare Conference (January 2020)
22 slides from Halozyme Therapeutics's conference presentation, Jan 16, 2020
Slide 1: 38th Annual J.P. Morgan Healthcare Conference: Halozyme Therapeutics
38th Annual J.P. Morgan Healthcare Conference Halozyme Therapeutics, Inc. Dr. Helen Torley, President and CEO January 16, 2020
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 and expectations for profitability, revenue, exp
Slide 3: Commercially Validated ENHANZE Platform Poised to Drive Value Creation
Commercially Validated ENHANZE® Platform Poised to Drive Value Creation ENHANZE® Validated 'IV to Sub Q’ Drug Delivery Platform Partnered with Premier Pharma and Biotech Companies • 3 Products approved by FDA, EMA and in multiple global markets Accelerating Partner Clinical Trial Activity Delivers N
Slide 4: ENHANZE Potential Value Drivers for Partners
ENHANZE® Potential Value Drivers for Partners Reduced Treatment Burden 1 and Healthcare Costs Potential for Competitive Darzalex® BMS I/O Perjeta®/ Potential for Competitive DifferentiationEfgartigimod 2 Differentiation ALXN 1810 Portfolio Herceptin® Facilitating Higher Injection Volume, PotentialEf
Slide 5: Potential for Competitive Differentiation for Daratumumab SC
Potential for Competitive Differentiation for Daratumumab SC Daratumumab SC: Phase 3 COLUMBA Study • Primary endpoints met for SC versus IV • PK non-inferiority • Response rate non-inferiority • 5 minute SC administration time Source: ASCO 2019, COLUMBA trial: intravenous versus subcutaneous daratum
Slide 6: Potential for Competitive Differentiation with Perjeta/Herceptin SC FDC
Potential for Competitive Differentiation with Perjeta®/Herceptin® SC Fixed Dose Combination (FDC) Perjeta®/Herceptin® FDC: Phase III (FeDeriCa) Study • Primary Endpoint met for SC versus sequential IV Perjeta® and Herceptin® • PK non-inferiority • 5-8 minutes SC administration time Source: Poster t
Slide 7: Competitive Differentiation and Extended Dosing Interval with Efgartigimod
Potential for Competitive Differentiation and Extended Dosing Interval with Efgartigimod Efgartigimod SC: Phase 1 Trial Phase 1 Data Support Potential for: • Fixed-dose versus weight based • Extended dosing interval • Self-administration at home Source: argenx CIDP KOL event, December 5, 2019 6
Slide 8: How We Work with Our ENHANZE Partners
How We Work with Our ENHANZE® Partners Halozyme Role Partner Role • Oversee Production and • Manufacture co-formulated Release of API to partner product for clinical and • Advise on co-formulation commercial use • Advise on PK, PD, regulatory • Design and execute path and clinical trial design clini
Slide 9: Increasing Value of Agreements Driven by Regulatory and Commercial Success
Increasing Value of Agreements Driven by Regulatory and Commercial Success Baxalta Janssen abbvie BMS argenx 2006 2007 2012 2014 2015 2017 2018 2019 One-time $20M $10M $8M $15M $23M $25M $105M $30M $40M $25M $30M Upfront Milestones $37– $160 - $37M $85M $113M ~$130M ~$160M $160M $160M $160M $160M /T
Slide 10: ENHANZE Revenue Streams
ENHANZE® Revenues Streams ENHANZE® Revenues Streams Royalties On average, mid-single digit royalty on net sales across all agreements Upfront: Payment to access technology and specific target(s): $30-40M for 1 or 2 nominated targets in recent deals Development: Increasing payments as development pla
Slide 11: Rapid Growth Results in Pipeline of Products Anticipated in 2020
Rapid Growth Results in Pipeline of 19 Products Anticipated in 2020 • Number of products utilizing ENHANZE® projected to increase from 14 to 19 in 2020 • Growing number of approved products – 3 at end 2019 – Projecting 1 new approval mid-2020: potentially Darzalex® SC – Projecting 1 new approval Q4
Slide 12: Majority of ENHANZE-partnered Products Are Approved, Commercially Successful Products
Majority of ENHANZE-partnered Products Are Approved, Commercially Successful Products Darzalex® Nivolumab Analyst Consensus Global Sales1: ~$33B in 2020 ~$43B in 2024 1 Based on worldwide sales estimates obtained via Evaluate Ltd, Bloomberg and analyst reports as of December 2019. Confidential and P
Slide 13: Three Products Successfully Commercialized in Global Markets
Three Products Successfully Commercialized in Global Markets US ROW 12
Slide 14: Daratumumab SC: Next Potential Regulatory Approval in 2020
Daratumumab SC: Next Potential Regulatory Approval in 2020 • Daratumumab IV • Indications: Multiple Myeloma including frontline, relapsed and relapsed refractory • Analyst consensus sales1 : $3.7B in 2020, $6.3B in 2024 • Regulatory Status • BLA and MAA Submissions completed July 2019; potential for
Slide 15: Perjeta/Herceptin Fixed Dose Combination with ENHANZE: Potential Approval Q4 2020/Q1 2021
Perjeta®/Herceptin® Fixed Dose Combination with ENHANZE®: Potential Regulatory Approval Q4 2020/Q1 2021 • Perjeta® and Herceptin® IV • Indications for combined use: Neoadjuvant, adjuvant and metastatic HER2+Breast Cancer • Analyst consensus Perjeta sales1 : $4.2B in 2020, $5.4B in 2024 • Regulatory
Slide 16: ENHANZE Development Pipeline Projected to Progress and Grow
ENHANZE® Development Pipeline Projected to Progress and Grow Q1 2020 Phase 1 ongoing or Project at least 5 new Phase 1 complete Studies starts in 2020(1) • Efgartigimod • Atezolizumab • ALXN1810 • Ocrelizumab • Nivolumab • Undisclosed: Lilly • Anti-CD73 (BMS) • Undisclosed • Relatlimab Project at le
Slide 17: Royalty Revenue Projection: Potential for ~$1B in 2027
Royalty Revenue Projection: Potential for ~$1B in 2027 ~$1 Billion 2020 2027 Projection based on approved products and assumes global approval and launches for 14 additional products in multiple indications. Includes projections for subcutaneous versions of targets not currently approved or commerci
Slide 18: Projected Milestones Drive Revenue and Free Cash Flow
Projected Milestones Drive Revenue and Free Cash Flow Milestone Revenue Projection 2019 2020 2021 2022 2018 Projection $225 - $300M 2019 Updated $350 - $450M Projection 2019 $55M Actuals Jan–Oct 17
Slide 19: Capital Allocation Strategy
Capital Allocation Strategy Strong commitment to return capital to shareholders Priorities:: Potential Platform Drive ENHANZE Share Free Cash Flow Expansion via growth Repurchases M&A • Maximize value of • Board-authorized share repurchase current collaborations program for $550 million over next th
Slide 20: 2020 Financial Guidance
2020 Financial Guidance 2019 2020 2020 Drivers Latest Estimate Guidance • Growth 18% to 26% driven by higher revenues from milestones Net • Royalties revenues projected to decline ~ $195M $230M – $245M Revenue modestly • 2020 guidance excludes revenue resulting from signing potential new ENHANZE dea
Slide 21: Transformation To High Revenue and EPS Growth Company
Transformation To High Revenue and EPS Growth Company • Sustainable profitability beginning 2020 with projected full year EPS of $0.60-$0.75 – Strong revenue growth driven by milestone growth – Restructuring resets expenses: $65-75M annually (excluding COGS) by Q4 2020 • Strong future revenue and EP
Slide 22: Value-driving Events Anticipated in 2020
Value-driving Events Anticipated in 2020 ❑ Profitability beginning in Q2 ❑ 3 new Phase 3 and 1 new Phase 2 trial starts ❑ 5 new targets entering the clinic ❑ Potential regulatory approval and launch of daratumumab SC ❑ Regulatory submissions and potential US approval of Perjeta®/Herceptin® FDC 21
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