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]

Financial Data and Key Metrics Changes - Total revenue for Q2 2025 was $326 million, representing a 41% increase year-over-year [5][35] - Royalty revenue grew 65% year-over-year to $206 million, driven by strong performance from established therapies [6][37] - Adjusted EBITDA increased 65% to $226 million compared to $137 million in the prior year [6][39] - Full-year revenue guidance for 2025 was raised to $1.275 billion to $1.355 billion, reflecting 26% to 33% growth over 2024 [6][41] Business Line Data and Key Metrics Changes - The three established blockbuster therapies driving growth are Darzalex subcutaneous, FSGO, and Vyvgart Hytrulo [5][10] - Darzalex revenue increased almost 22% to $3.5 billion in Q2 2025, with a 96% conversion rate to subcutaneous delivery in the U.S. [12][13] - FSGO revenue for the first half of 2025 was approximately $1.5 billion, reflecting a 55% year-over-year growth [16] - Vyvgart Hytrulo sales increased 97% year-over-year to $949 million in Q2 2025 [18] Market Data and Key Metrics Changes - The U.S. market for Darzalex subcutaneous is projected to continue strong growth due to increased penetration in frontline settings [12][13] - The total addressable market for generalized myasthenia gravis in the U.S. is now estimated at 60,000 patients, significantly higher than initial estimates [19] - Analysts project total brand sales for Ocrevus to reach $10 billion by 2028, with Halozyme earning royalties on the subcutaneous formulation [24] Company Strategy and Development Direction - The company is focusing on identifying new drug delivery platforms that can generate long-term revenue streams through royalties [7] - There is an emphasis on expanding the use of subcutaneous delivery systems to improve patient access and convenience [10][19] - The company is actively pursuing M&A opportunities while maintaining a disciplined approach to leverage [7][36] 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 [43] - The company is optimistic about the regulatory environment and believes it will prevail in ongoing litigation with Merck [52] - Management highlighted the importance of the IRA and ongoing discussions with CMS regarding the impact on their products [55] Other Important Information - The company completed a $250 million share repurchase in Q2 2025 and initiated a third tranche under a $750 million plan [7][36] - The company maintains a strong balance sheet with cash and marketable securities of $548.2 million as of June 30, 2025 [40] Q&A Session Summary Question: Status of IP litigation with Merck - The company is suing Merck for infringing 15 of its patents and expects to receive a scheduling order from the court in the coming months [46][48] Question: Confidence in regulatory front - Management is confident that there will be no impactful changes from CMS regarding the IRA and has submitted arguments to support this [55][56] Question: Guidance setting process - The company uses trends and inputs from partners to set guidance, with a focus on the latest data points [58][59] 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]