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Halozyme Therapeutics, Inc. Third Quarter Financial & Operating Results NASDAQ: HALO November 3, 2025 1 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 growth rates (including the Company's 2025 financial guidance and longer term financial outlook through 2028 and the assumptions used in deriving such g ...

Regulatory Approvals - In September 2025, argenx received approval in Japan for VYVDURA prefilled syringe for self-injection for treating adult patients with generalized myasthenia gravis and chronic inflammatory demyelinating polyneuropathy [152]. - In July 2025, Janssen announced European Commission approval for a new indication for DARZALEX SC as a monotherapy for high-risk adult patients with smoldering multiple myeloma [152]. - In June 2023, argenx received FDA approval for VYVGART Hytrulo for generalized myasthenia gravis, followed by European Commission approval in November 2023 and Japan approval in January 2024 [178]. - In July 2023, argenx reported positive data from the ADHERE study for VYVGART Hytrulo in chronic inflammatory demyelinating polyneuropathy, with FDA approval announced in June 2024 [178]. - OCREVUS SC received EU marketing authorization in June 2024 for a ten-minute injection, administered twice a year for multiple sclerosis [164]. - Takeda's HYQVIA received FDA approval for treating Primary Immunodeficiency in children in April 2023, expanding its use [169]. - BMS's Opdivo Qvantig, the first SC programmed death 1 inhibitor, received FDA approval in December 2024 for multiple adult solid tumors [176]. - Roche's TECENTRIQ SC was approved by the FDA in September 2024, further enhancing its market presence [163]. Collaborations and Acquisitions - Halozyme agreed to acquire Elektrofi, Inc. for $750 million upfront and up to three $50 million milestone payments contingent on product regulatory approvals, expected to close in Q4 2025 [152]. - The company licenses its ENHANZE technology to major biopharmaceutical companies, enhancing the delivery of high-dose injectable biologics [148]. - Halozyme's collaborations include partnerships with Roche, Takeda, Pfizer, Janssen, AbbVie, Lilly, BMS, argenx, ViiV, Chugai, and Acumen [149]. - In November 2023, argenx entered into a collaboration with Acumen to explore the use of ENHANZE for ACU193, targeting early Alzheimer's disease [185]. - In March 2025, ViiV announced that N6LS administered every four months with ENHANZE successfully maintained viral suppression in adults living with HIV [182]. Product Development and Technology - Halozyme has commercialized auto-injector products with Teva and Otter, and has development programs with McDermott Laboratories Limited [150]. - Halozyme's proprietary product portfolio includes Hylenex and XYOSTED, utilizing rHuPH20 and auto-injector technology respectively [150]. - ENHANZE technology may reduce patient treatment burden by enabling shorter administration times compared to intravenous methods [148]. - ATRS-1902 is a proprietary drug-device combination product for adrenal crisis rescue, with a Phase 1 clinical study initiated in September 2021 [158]. - Positive results from the Phase 1 study of ATRS-1902 led to Fast Track designation by the FDA, advancing the program to a pivotal study [159]. - The FDA accepted the IND application for ATRS-1902, allowing the initiation of clinical studies to compare its pharmacokinetics with Solu-Cortef [158]. - The company is actively expanding its product portfolio through collaborations and new product candidates in the pipeline [154]. Financial Performance - Royalties for the three months ended September 30, 2025, were $236,038, a 52% increase from $155,061 in 2024, driven by sales of ENHANZE partner products [192]. - Proprietary product sales for the three months ended September 30, 2025, were $52,242, a 31% increase from $39,925 in 2024, primarily due to market penetration of XYOSTED [192]. - Total product sales, net for the three months ended September 30, 2025, were $94,228, a 9% increase from $86,659 in 2024 [192]. - Revenues under collaborative agreements for the three months ended September 30, 2025, were $23,998, a 50% decrease from $48,364 in 2024, primarily due to timing of milestones achieved [194]. - Royalties for the nine months ended September 30, 2025, increased by 52% to $609,869,000 compared to $400,572,000 in 2024, driven by sales of ENHANZE partner products [202]. - Total product sales, net for the nine months ended September 30, 2025, increased by 13% to $253,779,000 from $224,128,000, primarily due to increased sales of proprietary product XYOSTED [203]. - Revenues under collaborative agreements decreased by 12% to $81,196,000 from $92,616,000, primarily due to the timing of milestones achieved [204]. Operating Expenses and Cash Flow - Operating expenses for the three months ended September 30, 2025, increased by 12% in cost of sales to $55,242,000 compared to $49,426,000 in 2024 [195]. - Research and development expenses decreased by 7% to $17,251,000 from $18,458,000, primarily due to lower compensation expenses [197]. - Selling, general and administrative expenses rose by 12% to $46,088,000, driven by increased consulting and professional service fees, including $6,000,000 in litigation costs [198]. - Investment and other income, net decreased by 18% to $5,333,000 from $6,474,000, mainly due to lower market interest rates [199]. - Income tax expense increased by 55% to $43,733,000 from $28,136,000, attributed to higher income before tax [201]. - Net cash provided by operating activities increased by $131,932,000 to $432,529,000 for the nine months ended September 30, 2025 [212]. - As of September 30, 2025, the company had cash, cash equivalents, and marketable securities totaling $702,000,000, sufficient to fund operations for at least the next 12 months [210]. Debt and Financing - As of September 30, 2025, the conditional conversion feature of the 2028 Convertible Notes was triggered, classifying them as current portion of long-term debt [219]. - The initial conversion rate for the 2028 Convertible Notes is 17.8517 shares per $1,000 principal amount, equivalent to a conversion price of approximately $56.02 per share [220]. - The cap price of the Capped Call Transactions is initially $75.4075 per share, representing a 75% premium above the last reported sale price of $43.09 per share on August 15, 2022 [221]. - The company paid approximately $69.1 million for the Capped Calls, recorded as a reduction to additional paid-in capital [222]. - The company completed the sale of $805.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2027, with net proceeds of approximately $784.9 million after fees [223]. - The initial conversion rate for the 2027 Convertible Notes is 12.9576 shares per $1,000 principal amount, equivalent to a conversion price of approximately $77.17 per share [226]. - The 2022 Credit Agreement provides for a $575 million revolving credit facility and a $250 million term loan facility, maturing on November 30, 2026 [227]. - The Term Facility requires quarterly repayments of 2.50%, 5.00%, 7.50%, and 10.00% of the initial principal amount in the first four years, respectively [228]. - As of September 30, 2025, the revolving credit facility was undrawn [230]. - The company does not believe that an immediate change of 10% in interest rates would materially impact its results of operations [237].

Financial Performance - Royalty revenue increased 52% year-over-year to a record $236 million, driving total revenue to a record $354 million, representing a 22% increase year-over-year[4] - Net income rose 28% year-over-year to $175 million; adjusted EBITDA increased 35% year-over-year to $248 million; GAAP diluted EPS increased 36% year-over-year to $1.43[1] - Total revenues for the three months ended September 30, 2025, were $354.3 million, a 22.1% increase from $290.1 million in the same period of 2024[25] - Royalty revenues reached $236.0 million for the three months ended September 30, 2025, compared to $155.1 million in the prior year, reflecting a 52.3% increase[25] - Net income for the three months ended September 30, 2025, was $175.2 million, up 28.0% from $137.0 million in the same period of 2024[25] - Adjusted EBITDA for the three months ended September 30, 2025, was $248.2 million, compared to $183.6 million in the same period of 2024, representing a 35.3% increase[29] - The company raised its 2025 financial guidance for total revenue to $1,300 - $1,375 million, representing year-over-year growth of 28% - 35%[12] - Adjusted EBITDA guidance for 2025 is set at $885 - $935 million, representing year-over-year growth of 40% - 48%[12] - Non-GAAP diluted EPS guidance for 2025 is projected at $6.10 - $6.50, representing year-over-year growth of 44% - 54%[12] Cash and Assets - Cash, cash equivalents, and marketable securities increased to $702 million as of September 30, 2025, compared to $596.1 million on December 31, 2024[13] - Cash and cash equivalents increased to $419.7 million as of September 30, 2025, from $115.9 million at the end of 2024[27] - Total assets as of September 30, 2025, were $2.22 billion, an increase from $2.06 billion at the end of 2024[27] Strategic Initiatives - The company plans to acquire Elektrofi for $750 million, with potential milestone payments of up to $150 million contingent on product regulatory approvals[10] - The company is pursuing the acquisition of Elektrofi, which is expected to enhance its platform and financial results[22] - The company achieved 13 out of 15 growth catalysts announced in Q1, including new product approvals and geographic expansion[4] - The company anticipates potential growth driven by new clinical trials and regulatory submissions related to its ENHANZE drug delivery technology[22] - The company has outlined plans for share repurchases and potential collaborations to expand its market presence[22] - The company initiated a $250 million share repurchase tranche, with $92.3 million used to repurchase approximately 1.7 million shares at an average price of $52.89 per share[10]

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Financial Performance - Royalty revenue increased 52% year-over-year to a record $236 million, driving total revenue to a record $354 million, representing a 22% increase year-over-year [1][3][13] - Net income rose 28% year-over-year to $175 million, with adjusted EBITDA increasing 35% year-over-year to $248 million [1][10][13] - GAAP diluted EPS increased 36% year-over-year to $1.43, while non-GAAP diluted EPS rose 35% year-over-year to $1.72 [1][10][13] Financial Guidance - The company raised its 2025 financial guidance ranges for total revenue to $1,300 - $1,375 million, representing year-over-year growth of 28% - 35% [1][11] - Adjusted EBITDA guidance was raised to $885 - $935 million, indicating year-over-year growth of 40% - 48% [1][11] - Non-GAAP diluted EPS guidance was increased to $6.10 - $6.50, reflecting year-over-year growth of 44% - 54% [1][11] Corporate Developments - The company announced a transition plan for its Chief Financial Officer, Nicole LaBrosse, who will remain in her position until a successor is found or until March 30, 2026 [2][5] - Halozyme is set to acquire Elektrofi, a biopharmaceutical company, for $750 million in upfront consideration, with additional milestone payments contingent upon product regulatory approvals [8][11] - The acquisition is expected to close in the fourth quarter of 2025, pending regulatory review [8][11] Product and Market Expansion - The company achieved two new indication approvals this quarter, enhancing its growth catalysts [3][4] - The continued success of ENHANZE-enabled therapies, including DARZALEX SC, Phesgo, and VYVGART Hytrulo, underscores the strength of Halozyme's royalty-driven business model [3][4] - The company anticipates revenue growth contributions from additional launched ENHANZE products to increase in 2026 and beyond [3][4]

Core Viewpoint - Halozyme Therapeutics, Inc. is focused on enhancing drug delivery technology through its ENHANZE platform, with significant developments including a recent acquisition and expectations for strong earnings growth [1][3][4]. Company Overview - Halozyme Therapeutics specializes in drug delivery technology, particularly through its ENHANZE platform, which allows for subcutaneous delivery of injectable biologics [1]. - The company's flagship product, Hylenex recombinant, is essential for improving subcutaneous fluid administration [1]. Financial Performance and Expectations - The consensus price target for HALO stock has fluctuated, currently at $74.5, down from $79.67 last quarter but up from $70.6 last year, indicating changing analyst expectations [2][5]. - Halozyme is preparing for its third-quarter earnings report, with expectations of robust royalty growth and a strong track record of surpassing earnings expectations [3][4]. Strategic Developments - The company has made a significant acquisition of Elektrofi, Inc. for an upfront payment of $750 million, which is expected to enhance its drug delivery offerings and influence its outlook for 2025 [3][5]. - The acquisition is anticipated to contribute to royalty revenue by 2030, targeting approved blockbuster mechanisms, thereby bolstering long-term growth prospects [4].

Core Insights - Halozyme Therapeutics, Inc. (NASDAQ:HALO) is recognized as a highly profitable biotech stock with a maintained Buy rating and a price target of $90 by H.C. Wainwright analyst Mitchell Kapoor [1][2] Company Overview - Halozyme Therapeutics, Inc. operates as a biopharmaceutical technology platform company, focusing on the development, manufacturing, and commercialization of drug-device combination products utilizing advanced auto-injector technology [4] Growth Potential - The company's growth potential is supported by the recent success of the MajesTEC-3 trial, which demonstrated significant improvements in progression-free survival (PFS) and overall survival (OS) compared to existing treatments [2][3] - The MajesTEC-3 trial combines Johnson & Johnson's DARZALEX Faspro with TECVAYLI, enhancing Halozyme's royalty base and providing strong evidence for DARZALEX-based regimens, which leverage the company's ENHANZE technology [3]

Core Insights - Halozyme Therapeutics (HALO) is set to report its third-quarter 2025 results on November 3, with sales and earnings estimates at $336.9 million and $1.62 per share respectively [1][7] - Earnings estimates for 2025 have risen from $6.01 to $6.18 per share over the past 60 days [1] Earnings Performance - Halozyme has a strong history of earnings surprises, having exceeded earnings expectations in the last four quarters with an average surprise of 19.74% [2][3] - The most recent quarter saw an earnings surprise of 25.20% [2] Earnings Prediction Model - The company's earnings prediction model indicates a likely earnings beat, supported by a positive Earnings ESP of +2.53% and a Zacks Rank of 3 (Hold) [4][5] Revenue Drivers - The anticipated revenue for Q3 2025 is expected to be bolstered by royalty gains from partnerships with Roche, J&J, and argenx [7][9] - Halozyme's collaboration agreements with large pharmaceutical companies utilizing its ENHANZE technology are key revenue contributors, generating royalties, milestone payments, and annual license fees [8] Recent Developments - Halozyme has entered into an agreement to acquire Elektrofi for $750 million, which is expected to enhance its drug delivery technology and support long-term revenue growth [11][12] - The company reaffirmed its 2025 revenue guidance, expecting total revenues between $1.28 billion and $1.36 billion, with royalty revenues projected at $825-$860 million [13] Stock Performance and Valuation - Year-to-date, Halozyme's shares have increased by 38.4%, outperforming the industry and the S&P 500 [14] - The stock is currently trading at a price-to-sales ratio of 6.97, which is above the industry average of 2.26 but below its five-year mean of 8.41 [16] Financial Position - Halozyme maintains a strong financial position with $548 million in cash and no near-term debt, providing sufficient liquidity for operations [17] Growth Potential - The company is expected to benefit from higher royalties and incremental contributions from proprietary products, alongside the diversification from the Elektrofi acquisition [18] - Analysts have a positive outlook on the stock, reflected in rising earnings estimates [20]

Company Overview - Halozyme Therapeutics (HALO) is expected to report a year-over-year increase in earnings, with a projected EPS of $1.62, reflecting a +27.6% change, and revenues of $336.85 million, up 16.1% from the previous year [3][12]. Earnings Expectations - The earnings report is anticipated to be released on November 3, and the stock may rise if the results exceed expectations, while a miss could lead to a decline [2][12]. - The consensus EPS estimate has been revised 0.95% higher in the last 30 days, indicating a positive reassessment by analysts [4]. Earnings Surprise Prediction - Halozyme has an Earnings ESP of +2.53%, suggesting a likelihood of beating the consensus EPS estimate [12]. - The company has a Zacks Rank of 3, which indicates a hold position, but the combination with a positive Earnings ESP suggests a potential earnings beat [12][10]. Historical Performance - In the last reported quarter, Halozyme exceeded the expected EPS of $1.23 by delivering $1.54, resulting in a surprise of +25.20% [13]. - Over the past four quarters, Halozyme has consistently beaten consensus EPS estimates [14]. Industry Context - In comparison, Bristol Myers Squibb (BMY) is expected to report a decline in earnings, with an EPS of $1.51, down 16.1% year-over-year, and revenues of $11.83 billion, a slight decrease of 0.5% [19]. - Bristol Myers has a negative Earnings ESP of -1.03%, making it challenging to predict an earnings beat, despite having beaten estimates in the previous four quarters [20].