Halozyme Therapeutics Investor Conference Call Summary Company Overview - **Company**: Halozyme Therapeutics (NasdaqGS: HALO) - **Date of Call**: January 28, 2026 - **Key Speaker**: Dr. Helen Torley, President and CEO Key Highlights Business Updates - **Acquisitions**: - Acquired Elektrofi in November 2025, gaining Hypercon technology for biologic hyperconcentration with IP extending to the mid-2040s [4][5] - Acquired Surf Bio in late December 2025, adding another hyperconcentration technology with similar long-duration IP [5] - **ENHANZE Technology**: - Continued strong momentum with global regulatory approvals for ENHANZE, co-formulated with Johnson & Johnson's RYBREVANT, leading to 10 globally approved products [5][6] - Three new collaboration agreements signed in late 2025, expanding therapeutic areas to include obesity and inflammatory bowel disease [6] Financial Performance - **2025 Revenue Estimates**: - Projected total revenue of $1.385 billion to $1.4 billion, representing a 36%-38% growth over 2024 [15] - Royalty revenue projected at $865 million to $870 million, a 51%-52% increase year-over-year [16] - **2026 Guidance**: - Total revenue projected at $1.71 billion to $1.81 billion, a 23%-30% increase over 2025 [17] - Royalty revenue guidance increased to $1.13 billion to $1.17 billion, reflecting a 30%-35% year-over-year increase [18] - **Long-term Projections**: - Total revenue expected to exceed $2 billion by 2028, driven by robust royalty revenue growth [19] Technology and Market Trends - **Subcutaneous Delivery**: - Halozyme's technologies address challenges in subcutaneous delivery of biologics, allowing larger volumes to be administered quickly [9][11] - Hypercon and Surf Bio technologies can achieve concentrations of up to 500 mg/mL, significantly reducing injection volumes [11][12] - **Emerging Opportunities**: - Interest in using ENHANZE with nucleic acids and antibody-drug conjugates, indicating a growing market for these applications [10][27] - **Market Dynamics**: - Shift towards at-home therapies and smaller volume injections is driving demand for Halozyme's technologies [29] Competitive Positioning - **Durability and Profitability**: - Halozyme's business model is asset-light, with partners responsible for development costs, leading to high margins and free cash flow [21] - Projected growth margin exceeding 80% and operating margin greater than 60% for 2026-2028 [21] Strategic Outlook - **Future Growth Drivers**: - Continued expansion of ENHANZE with 13 products in development by the end of 2026 [41] - Potential for additional M&A to enhance revenue streams and leverage Halozyme's expertise in drug delivery technologies [30][82] - **Regulatory Environment**: - FDA's evolving stance on clinical study designs may expedite approval timelines for new technologies [50][51] Additional Insights - **Partnerships and Collaborations**: - Ongoing discussions with biopharma companies for new licensing agreements, with expectations of signing 1-3 new ENHANZE deals in 2026 [41][42] - **Market Position**: - ENHANZE remains a key platform for Halozyme, with significant contributions expected from existing and new products [41][42] This summary encapsulates the critical points discussed during the Halozyme Therapeutics investor conference call, highlighting the company's strategic direction, financial performance, and market opportunities.

Financial Data and Key Metrics Changes - Total revenue for the quarter was $326 million, representing a 41% increase year-over-year [6][39] - Royalty revenue grew 65% year-over-year to $206 million, driven by strong performance from established therapies [7][39] - Adjusted EBITDA increased 65% to $226 million compared to the prior year [7][39] - Full-year revenue guidance for 2025 was raised to $1.275 billion to $1.355 billion, reflecting 26% to 33% growth over 2024 [7][42] - Full-year royalty revenue guidance was increased to $825 million to $860 million, representing growth of 44% to 51% year-over-year [8][42] Business Line Data and Key Metrics Changes - The three established blockbuster therapies driving growth are Darzalex subcutaneous, FSGO, and Vyvgart Hytrulo [6][11] - Darzalex reported a revenue increase of almost 22% to $3.5 billion in the quarter, with a 96% conversion rate to subcutaneous delivery in the U.S. [13][16] - FSGO revenue for the first half of 2025 was approximately $1.5 billion, reflecting a 55% year-over-year growth [16][17] - Vyvgart Hytrulo sales increased 97% year-over-year to $949 million in the second quarter [18][39] Market Data and Key Metrics Changes - The global conversion rate for FSGO from Perjeta to FSGO was 46% across 78 launch countries [16][17] - Ocrevus revenue increased 8% to approximately $4.4 billion in 2025, with expectations for high single-digit growth [24][25] - Ribrovant subcutaneous revenue was $179 million, representing over 100% year-over-year growth [31][39] Company Strategy and Development Direction - The company is focusing on identifying new drug delivery platforms that can generate long-lasting revenue streams through royalties [9] - There is an emphasis on expanding the use of ENHANZE technology to enhance patient access and convenience [11][12] - The company is pursuing M&A opportunities while maintaining a disciplined approach to leverage [9][37] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the durability of revenue streams and the potential for continued growth driven by multiple catalysts [44] - The company is actively engaging with regulatory bodies to ensure favorable outcomes regarding the IRA and CMS guidance [55][56] - Management remains optimistic about the ongoing performance of their blockbuster products and the potential for new product launches [44][66] Other Important Information - The company completed a $250 million share repurchase in the quarter and initiated a third tranche under a $750 million plan [9][37] - The company maintains a strong balance sheet with cash and marketable securities of $548 million as of June 30, 2025 [41] Q&A Session Summary Question: Status of IP litigation with Merck - The company is suing Merck for infringing 15 of its patents, with a scheduling order expected in the coming months [47][48] - Four PGRs filed by Merck have been scheduled for a hearing in March 2026, with decisions anticipated by June 2026 [49][50] Question: Confidence in regulatory front - Management is confident that there will be no impactful changes regarding the IRA and has submitted feedback to CMS [55][56] Question: Guidance setting process - The company uses trends and inputs from partners to set guidance, with updates occurring based on new data points [57][58] Question: Interest in high-volume auto injectors - There is strong interest from multiple companies in the high-volume auto injectors, with ongoing discussions at various stages [69][70] Question: Long-term guidance updates - The company updates long-term guidance annually, with more information expected at the start of the next year [66] Question: Impact of CMS guidance on deal conversations - The pending CMS guidance has not impacted deal conversations, as many companies are still interested in subcutaneous delivery options [88][89]