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 ...

Financial Data and Key Metrics Changes - The company raised its revenue guidance for FY 2025 to $1.3 billion, with royalties from the ENHANZE® platform expected to be between $825 million and $860 million, representing a year-over-year growth of 46% to 51% [5][6] - EBITDA is projected to be at least $865 million, indicating a growth in the high 30% range [6] - The company has returned $1.8 billion to shareholders through share repurchases since 2019, including $303 million in the current year [7] Business Line Data and Key Metrics Changes - The ENHANZE® platform has achieved 10 approvals to date, with significant contributions from products launched between 2020 and 2023, including Darzalex® subcutaneous, VYVGART® Hytrulo, and Fesgo® [4][6] - VYVGART® Hytrulo has shown remarkable growth, achieving $1 billion in revenue in the second quarter, with a 100% year-over-year growth driven by its subcutaneous launch [10][11] - The company anticipates additional launches for Opdivo®, Tecentriq®, Ocrevus®, and Rybrevant®, which are expected to contribute meaningfully in 2026 and beyond [6][12] Market Data and Key Metrics Changes - The company is experiencing strong adoption of its subcutaneous delivery technology, with Darzalex® growing at 20% year-over-year and projected to reach $18 billion by 2028 [10] - Ocrevus® subcutaneous has already treated 6,500 patients worldwide, with 50% being new to the drug, indicating market expansion [17] Company Strategy and Development Direction - The company is focused on expanding its delivery platforms and exploring new partnerships, particularly in oncology, inflammation, immunology, neurology, and nephrology [23][24] - Halozyme is actively pursuing new deals and expects to sign at least one additional deal this year, which should progress into clinical trials next year [46] - The company is also looking for new drug delivery platforms that align with its revenue profiles to enhance growth [56] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued strong revenue growth driven by multiple catalysts, including new product approvals and market expansions [54] - The company is confident in its ability to influence policy discussions regarding the Inflation Reduction Act and its potential impact on revenue [30][31] - Management highlighted the importance of ongoing litigation with Merck, which could result in additional revenue streams if successful [37][40] Other Important Information - The company has a robust pipeline with nine products in development, including two in phase three trials, which could provide additional growth opportunities [47] - The co-formulation patent for VYVGART® Hytrulo could extend royalties until 2042, indicating a long revenue tail for the product [51] Q&A Session Summary Question: How is the long-term growth outlook for VYVGART® Hytrulo? - Management indicated that VYVGART® Hytrulo has significant growth potential, with ongoing studies to expand its indications and a strong market presence [12][11] Question: What is the launch trajectory for PD-1s like Opdivo® and Tecentriq®? - Management noted that Opdivo® is seeing good adoption, with a five-minute subcutaneous injection being attractive to physicians and patients [15][14] Question: How is the company addressing the Inflation Reduction Act? - Management is actively engaging with policy discussions and believes that the clinical benefits of their subcutaneous delivery technology will be recognized [26][30] Question: Can you provide an update on the Merck litigation? - Management confirmed that they are pursuing legal action against Merck for patent infringement and are confident in their position [36][37]

Financial Data and Key Metrics Changes - The company raised its revenue guidance for FY 2025 to $1.3 billion, with royalties from the ENHANZE® platform expected to be between $825 million and $860 million, representing a year-over-year growth of 46% to 51% [5][6] - EBITDA is projected to be at least $865 million, indicating a growth in the high 30% range [6] - The company has returned $1.8 billion to shareholders through share repurchases since 2019, including $303 million in the current year [7] Business Line Data and Key Metrics Changes - The ENHANZE® platform has achieved 10 approvals to date, with significant contributions from products launched between 2020 and 2023, including Darzalex® subcutaneous, VYVGART® Hytrulo, and Fesgo® [4][6] - VYVGART® Hytrulo has shown remarkable growth, achieving $1 billion in revenue in the second quarter with a 100% year-over-year growth rate [10][11] - The company anticipates additional launches for Opdivo®, Tecentriq®, Ocrevus®, and Rybrevant®, which are expected to contribute meaningfully starting in 2026 [6][12] Market Data and Key Metrics Changes - The company is experiencing strong adoption of its subcutaneous delivery technology, with Darzalex® growing at 20% year-over-year and projected to reach $18 billion by 2028 [10] - Ocrevus® subcutaneous is expected to expand the market by $2 billion, with 50% of patients being new to the drug [17] - The company is actively pursuing partnerships in oncology, inflammation, immunology, neurology, and nephrology, focusing on subcutaneous delivery opportunities [22] Company Strategy and Development Direction - The company aims to enhance patient convenience through at-home delivery of biologics, aligning with industry trends [5] - There is a focus on expanding the ENHANZE® platform and exploring new drug delivery technologies to drive growth [58] - The company is also looking for M&A opportunities to add new delivery platforms that align with its revenue model [58] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the continued growth of royalty revenues, driven by multiple product catalysts and new indications [56] - The company is optimistic about the potential for new partnerships and product advancements, which will contribute to durable revenue growth [51][58] - Management is actively engaging with regulatory bodies to clarify the implications of the Inflation Reduction Act on their products [25][30] Other Important Information - The company is involved in litigation with Merck regarding patent infringement related to modified hyaluronidases, with potential for significant financial outcomes depending on the court's decision [36][37] - The company has a robust pipeline with nine products in development, including two in phase three trials, which could provide additional revenue streams [49][50] Q&A Session Summary Question: How is the long-term growth outlook for VYVGART® Hytrulo? - Management highlighted that VYVGART® Hytrulo has significant growth potential, with ongoing studies to expand its indications and a strong market presence [11][12] Question: What is the launch trajectory for PD-1s like Opdivo® and Tecentriq®? - Management indicated that Opdivo® is seeing good adoption, with a five-minute subcutaneous injection being attractive to physicians and patients [15][16] Question: How is the company addressing the Inflation Reduction Act? - Management is actively seeking to influence policy discussions and believes that their products will not be adversely affected by the IRA [25][30] Question: Can you provide an update on the Merck litigation? - Management explained that the litigation is ongoing, with expectations for a lengthy process, but expressed confidence in their position regarding patent infringement [36][37] Question: What are the timelines for new partnerships and product developments? - Management is optimistic about signing at least one new deal this year, with several products in the pipeline expected to progress into clinical trials [48][49]

Second Quarter 2025 Financial Results - Total revenue reached $325.7 million, a 41% increase compared to the second quarter of 2024[32] - Royalty revenue increased by 65% to $205.6 million[32] - Net income was $165.2 million, a 77% increase year-over-year[32] - Adjusted EBITDA was $225.5 million, a 65% increase compared to the same period last year[32] - GAAP diluted EPS increased by 85% to $1.33, while Non-GAAP diluted EPS increased by 69% to $1.54[32] Full Year 2025 Guidance - Total revenue is projected to be between $1.275 billion and $1.355 billion, representing a 26-33% increase[6] - Royalty revenue is expected to be between $825 million and $860 million, a 44-51% increase[6] - Adjusted EBITDA is guided to be between $865 million and $915 million, a 37-45% increase[6] - Non-GAAP diluted EPS is projected to be between $6.00 and $6.40, a 42-51% increase[6] Share Repurchase Program - The company completed a $250 million accelerated share repurchase program[6] - A new $250 million share repurchase program was announced[6]

Financial Performance - Q1 2025 - Total revenue reached $265 million, a 35% increase compared to the same period last year[9] - Royalty revenue increased by 39% to $168 million[9] - GAAP net income was $118 million, a 54% increase[9] - GAAP diluted EPS increased by 55% to $0.93, while non-GAAP diluted EPS increased by 41% to $1.11[9] - Adjusted EBITDA increased by 40% to $162 million[9] Key Products & Growth Drivers - DARZALEX® SC U S market share is approximately 95%[11] - DARZALEX® sales reached $3.2 billion in Q1 2025, a 22% year-over-year increase[12] - Phesgo® sales are projected to reach $3.3 billion in 2028[14], with Q1 2025 revenue at approximately $675 million, a 52% year-over-year increase[15] - VYVGART® & VYVGART® Hytrulo SC are projected for blockbuster growth to approximately $7 billion in 2028[18] Financial Outlook & Capital Allocation - The company announced a new $250 million share repurchase program[10, 37] - The company projects approximately $1 billion of royalty revenue in 2027[31] - Total revenue for 2025 is guided between $1200 million and $1280 million[40]