Halozyme Therapeutics, Inc. · NASDAQ:HALO
Halozyme Therapeutics — Q4 2023 Earnings Presentation
23 slides from Halozyme Therapeutics's earnings presentation, Feb 20, 2024
Slide 1: Fourth Quarter and FY 2023 Financial & Operating Results
Halozyme Therapeutics, Inc. Fourth Quarter and FY 2023 Financial & Operating Results NASDAQ: HALO February 20, 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: Industry Leading Drug Delivery Platform Company
Industry Leading Drug Delivery Platform Company Small Volume Commercial ENHANZE® Auto-Injector with Drug Products (SVAI) 7 approved partnered 1 approved proprietary SVAI +3 + products Approved in 100+ approved partner SVAI products countries >40M devices supplied 2013-2023 ~800,000 patients have rec
Slide 4: Strong 2023 Results with Significant Growth Opportunities
Strong 2023 Results with Significant Growth Opportunities Broad Portfolio $829M $448M Royalty Total Revenue Revenue +26% +24% Multiple Revenue Streams Strong Pipeline $426M $2.77 $400M Adjusted Non-GAAP Deployed EBITDA Diluted EPS for Share +19% +25% Repurchases Extensive Patent Estate 4
Slide 5: Operational and Commercial Achievements in 2023
Operational and Commercial Achievements in 2023 Commercialization and Development Milestones Innovation + Partnership Milestones • VYVGART® Hytrulo (gMG) in U.S and EU 2023 Approvals • Tecentriq® SC in UK + Halozyme First HVAI Resulting in 7 commercial ENHANZE® - ENHANZE® Auto-Injector delivering en
Slide 6: A De-Risked & Proven Business Model Positioned for Durable Revenue and EBITDA Growth
A De-Risked & Proven Business Model Positioned for Durable Revenue and EBITDA Growth $915M-$985M $535M-$585M Total $829M 10%-19% $426M 26%-37% YoY YoY Total 12%-17% YoY $500M- $525M $448M Royalty Royalty Revenue 2023 - 2024 Adjusted EBITDA 2023 - 2024 $1,125M-$1,250M $1,565M-$1,690M Total +23% $829M
Slide 7: Royalty Revenues
Royalty Revenues Annual Total Royalty Revenue 24% YoY Increase in 2023 in millions (USD) $500-$525M $447.9 $360.5 $203.9 $88.6 $69.9 2019 2020 2021 2022 2023 2024E 7
Slide 8: DARZALEX SC/FASPRO Revenue Growth Continues
Wave 2: Growth Drivers DARZALEX SC/FASPRO® Revenue Growth Continues Growth Drivers Total DARZALEX® Sales IV+SC ($B) 1 Increase penetration into front line treatment Johnson & Johnson submitted sBLA to FDA seeking approval of 92% SC Conversion in U.S. DARZALEX FASPRO® (daratumumab and hyaluronidase-f
Slide 9: Phesgo Growth Continues US and Ex-US
Wave 2: Growth Drivers Phesgo® Growth Continues US and Ex-US Growth Drivers1 Phesgo Reduces Administration Time and Costs ® New market launches Treatment Option Total Time Share gains in US and ex-US 39% conversion2 ~2.5-7.5 hours 2023 Phesgo® Sales Sales (CHFm) Growth CER ~20-38 minutes TOTAL 1,120
Slide 10: Multiple Recent and Projected Product and Indication Launches Drive Royalty Revenue Growth
Multiple Recent and Projected Product and Indication Launches Drive Near and Long-Term Royalty Revenue Growth 2023 2024 2025 Amivantamab SC potential approval 2025 Ocrevus SC potential approval 4Q 2024 VYVGART Hytrulo Nivolumab SC (CIDP) potential launch potential Tecentriq SC 2025 Tecentriq SC appr
Slide 11: ENHANZE Wave Pipeline: 7 Products in Development
ENHANZE® Wave 4 Pipeline 7 Products in Development 2 Products 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) Cabotegravir (ViiV) HIV ARGX-117;
Slide 12: Halozyme Developed and Clinically Tested the First High Volume Auto-Injector Delivering 10 mL
Halozyme Developed and Clinically Tested the FIRST High Volume Auto- Injector Delivering 10 mL SC in Just 30 Seconds What made this uniquely possible? First HVAI Delivering 3-10 mL in Halozyme Auto-Injector + Technology and Know-How <30 seconds. Results: • • 100% success Well tolerated • High patien
Slide 13: Capital Allocation Priorities
Capital Allocation Priorities Invest to Maximize Revenue Return Capital to Identify Opportunities for Growth and Durability Shareholders External Growth Initiated $250M ASR in 4Q23 to be completed in 2024, for a total of $400M deployed in 2023 ENHANZE® Continue to evaluate Announced Board approval f
Slide 14: 4Q 2023 Financial Highlights
4Q 2023 Financial Highlights $ in Millions, except EPS (unaudited) 4Q 2023 4Q 2022 % Change Royalties $122.1 $106.0 15% Product sales, net $79.6 $61.2 30% Collaboration revenues $28.4 $14.4 98% Total Revenues $230.0 $181.5 27% Cost of sales $52.3 $42.1 24% Amortization of intangibles $17.8 $4.6 290%
Slide 15: FY 2023 Results
FY 2023 Results $ in Millions, except EPS (unaudited) FY 2023 FY 2022 % Change Royalties $447.9 $360.5 24% Product sales, net $300.9 $191.0 57% Collaboration revenues $80.5 $108.6 (26%) Total Revenues $829.3 $660.1 26% Cost of sales $192.4 $139.3 38% Amortization of intangibles $73.8 $43.1 71% R&D e
Slide 16: 2024 Financial Guidance Highlights
2024 Financial Guidance Highlights 2023 2024 Guidance1 • 10-19% YOY growth • Total collaboration revenue expected to increase compared to 2023 inclusive of new deals Total Revenue $829M $915M - $985M • Product sales growth from XYOSTED®; projecting API sales decline due to price reductions resulting
Slide 17: Our Vision
Our Vision Subcutaneous delivery with ENHANZE can result in… Decreased treatment burden De Treatment from hours te ve va l to minutes3 o op Inn Today Our Vision Lower infusion related Many breakthrough Breakthrough reactions (IRRs)1 therapies require therapies will the patient’s life to fit the pati
Slide 18: Looking Ahead: 2024 and Beyond
Looking Ahead: 2024 and Beyond $ in Millions, except EPS (unaudited) 2023 2024 2023-2028 2025 2026 2027 2028 Actual Guidance CAGR7 Royalties1 447.9 500 – 525 595 – 620 750 – 790 975 – 1,025 1,000 – 1,050 18% Product Sales2 300.9 285 – 300 315 – 335 385 – 415 410 – 455 435 – 480 9% Collaboration Reve
Slide 19: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA (1) Amounts represent incremental costs including legal fees, accounting fees and advisory fees incurred for the prior year acquisition of Antares Pharma, Inc. (“Antares”). 19
Slide 20: GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
$ in Thousands (unaudited) GAAP to Non-GAAP Reconciliation: 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 d
Slide 21: GAAP to Non-GAAP Reconciliation: Diluted EPS
(unaudited) GAAP to Non-GAAP Reconciliation: Diluted EPS Dollar amounts, as presented, are rounded. Consequently, totals may not add up. (1) Amounts relate to amortization of the inventory step-up associated with purchase accounting for the Antares acquisition. (2) Adjustments relate to taxes for th
Slide 22: GAAP to Non-GAAP Reconciliation: Diluted EPS
(unaudited) 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 prior year Antares acquisition. (2) Amount represe
Slide 23: GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS
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) Amount represents severance cost and acceleration of unvested equity awards as part of the An
Halozyme Therapeutics — Q4 2023 Earnings Presentation on 6ix