Halozyme Therapeutics (HALO) Wells Fargo 21st Annual Healthcare Conference summary

Business performance and growth drivers

• Achieved record quarterly revenues of $481 million, up 48%, with royalties exceeding $300 million, up 50% year-over-year.

• ENHANZE platform remains the primary growth driver, with DARZALEX and VYVGART HYTRULO showing strong expansion due to new indications and longer therapy durations.

• Recent launches of Ocrevus, OPDIVO, and RYBREVANT subcutaneous formulations grew 80% sequentially, becoming significant royalty contributors.

• Pipeline includes 13 ENHANZE products expected in the clinic by year-end and two HyperCon products entering clinical testing early next year.

• Five new deals signed this year, expanding into ADCs and nucleic acids, supporting future royalty streams.

Industry trends and strategic positioning

• Subcutaneous (subQ) drug delivery is now a commercial mandate across pharma, driven by patient demand for at-home, convenient therapies.

• ENHANZE is recognized as the leading subQ technology, with HyperCon and Surf Bio addressing small-volume auto-injector needs.

• Expansion beyond oncology into immunology, nephrology, GI, and neurology, with increasing interest in ADCs and nucleic acids.

• SubQ delivery is shifting from a defensive to an offensive strategy, enabling deeper market penetration and larger product potential.

• Examples like DARZALEX and VYVGART demonstrate market growth and improved patient access due to subQ formulations.

Deal structure and economics

• Mix of exclusive and non-exclusive ENHANZE deals, all with attractive long-term royalties (minimum 10 years), typically mid-single-digit rates.

• HyperCon deals mirror ENHANZE structure, with upfront payments, milestones, and mid-single-digit royalties.

• Up to 13 ENHANZE launches projected between 2029 and 2033, with HyperCon launches expected in the early 2030s.

• Patent reissue for DARZALEX could extend mid-single-digit royalties from 2027 to 2029, pending ongoing prosecution.

• Multi-year guidance to 2028 is based on de-risked royalty streams, with updates as new streams are validated.