HALO - Earnings call transcript Q2 2021 | Halozyme Therapeutics, Inc.

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Operator

Thank you all for standing by and welcome to the Halozyme Second Quarter 2021 Financial Results Conference Call. All lines will be in a listen-only mode until the question-and-answer session of today’s conference [Operator Instructions] Please also note that today’s call is being recorded. I’ll now turn the call over to your host, Al Kildani. Sir, you may now begin.

Al Kildani

Thank you. to quarter welcome conference financial and call. afternoon our XXXX second results Good

will our today Sun, be Officer, will an both release measures our you addition Leading Chief The financial Investor Chief press In release to Executive financial our our review of business GAAP issued slide who quarter. Torley, call, our adjusted are today’s in a for Officer, today’s on measures website. update Halozyme’s and slide Relations and section comparable press the on call GAAP can and presentation. supplementary financial first provide the after financial Elaine Helen presentation who with non-GAAP or referenced discussed. results in that will Financial will measures be earnings the non-GAAP call the Dr. find reconciled will close, On be the President and our

making the you be During uncertainties. I SEC over risks turn the listing I’ll we our to for and now refer Torley. the to call, a Helen of call full will forward-looking Dr. statements. filings

Helen Torley

royalties. and quarter $XXX.X than was previously by by royalties substantial Healthcare higher commensurate with guidance recent resulted revenues Thank $XXX record XXXX collaboration an to pleased in you, that have revenues. in million This GAAP $XX report from strong also new increase ViiV $XX.X earnings of and $XXX quarter in total our our outlook achieve increases million with Al. guidance. $XXX non-GAAP collaboration in from financial our million. We now outlook is initial revenues and supported share million to of increase increase to driven second per second our million expect The We our and quarterly financial results million of guidance. our reported anticipated to I'm in $XXX million an revenue, enhanced to

earnings the COVID ongoing per manufacturers through and per HIV With Once ViiV licensed share Healthcare the these have enable ultra-long-acting non-GAAP evolving in entire delivering our HIV against the accomplished and our excited to was development results resulted for we share into GlaxoSmithKline agreement, in These collaboration achieved of medicines results GAAP needs $X.XX of on diluted ViiV to strong ViiV global $X.XX. by which to again, June. strong four to a is pandemic. ViiV and our Beginning HIV of that slide Halozyme dedicated the performance our diluted HIV of presentation, partners, upfront large Second molecule earnings quarter and in exclusively targets, Under been earnings the Halozyme. specialist was backdrop of we company XXth which therapies to and X with hard meet advances is a discuss of and $XX-million is contract I'm seeking work technology, small majority our suppliers ENHANZE team. is entered the enhanced payment and prevention. for global treatment terms patients. the owned

by payments future plan under on using HIV. of to any the of for sales each development to net commercial mid-single-digit six for the to of is ViiV and of up medicines milestones a obligated We potential Halozyme and utilize every potential Cabotegraviris evaluate approved currently to is million two addition, currently pay every make once-monthly for ENHANZE. royalty commercialized and with $XXX cabotegravir FDA. regimen to ultra-long-acting review first prevention months for the months form In dosing of to HIV treatment in the target the technology to ENHANZE dosing an three

for in treatment combining which potentially self-administered clinic ViiV in the regimens opportunities goal result cabotegravir use to pipeline long-acting pre-exposure like regimen for first with to ENHANZE Day Investor During GSK’s for could and representatives products that treatment prophylaxis fewer would the ultra-long-acting commented for of of expand visits June, to the they offering ViiV patients.

ENHANZE ViiV by on drugs, the expands the to multiple disease collaborative with injectable ENHANZE. long-acting it large therapies technology the It's in to includes Our work collaboration under a replace underway that is with ways. with the explores with ENHANZE the team significant the ViiV year. collaboration oral it together with already is this of versatility And first cabotegravir highlights infectious small and study ENHANZE working on end say projected I'm X study opportunity versatility a the and pleased the as both potential molecule start current often and therapies. of focus and of Halozyme highlighting well molecule first recognized daily Phase

is Now, new engaged and the deal signed biotech a last we're momentum this to months actively collaboration range second hard working eight companies. within are this in pharma with of our continue new ENHANZE discussions and and

enhanced royalty Let and year-over-year the we'll continue. quarterly outlook year. and $XX.X for been the also during following contribute by revenue to XX% in way meaningful turn royalty This driven Roche's growth growth Strong to growth X to continues second quarter growth in the be successful a subcutaneous Phesgo sequential of of XXX% ongoing launches had is which global Royalties utilize the what launches primarily strong represents second me and DARZALEX now quarter more royalty. discuss our a the were forms slide technology. Jansenn’s million. previously beginning as our global record

delighted of our robust more revenue now stream. doubling year predict provide XXXX full is of to on by the I'll I'll key highlights of we XXXX with growth anticipation begin over but now in on the slide X royalty than see recurring SC. driven growth high-margin based This commercialized products. discussion a the revenues primarily DARZALEX. continued this in For DARAZLEX We're

reported forms on the the both SC up $X.X Janssen’s worldwide During and basis. Johnson Johnson sales an billion, DARZALEX quarter, XX.X% of & second IV parent of including year-over-year operational

sales that XX% technology is sales share reached DARZALEX XX% the share of US worldwide the call, XX% States. According outside States. in the the June from United United Symphony are FASPRO Health, the utilizes and data enhanced J&J which of DARZALEX During form percent in now the and that to also subcutaneous in management our stated

right side sales of slide DARZALEX represented is that the the total FASPRO of the US. DARZALEX On in the percentage

regulatory the last and most quarters, on levels. announced predict the DARZALEX recent data of last well from have agree you about after very Last quarter. I FASPRO received think patients Jannssen we approval Based robust at this or significant Janssen relapse. of This achievements Supporting during and multiple seen Symphonhy growth number US month myeloma incombination FDA pomalidomide second the for subsequent comments four with first a with the populations dexamethasone conversion SC month in shared DARZALEX from sixth will of granted DARZALEX that June, for J&J’s authorizations in two continue as in trend. the current marketing patient increasing as future SC And will new Janssen the the the Looking for marked in is we additional in treatment adoption FASPRO of a of indication expansion into impressive States. two indications. was United DARZALEX myeloma multiple the Europe in for

the diagnosed light with in chain was dexamethasone amyloidosis, DARZALEX first for The Europe. SC cyclophosphamide, approved newly in in use and for amyloidosis patients systemic therapy AL adult bortezomib combination with first marking authorization

we be come. in for regulatory will continue With much myeloma. royalty was with strong authorization to multiple momentum, expect dexamethasone use and second refractory patients of adult sales time in for that growth a pomalidomide with and Halozyme or DARZALEX to revenue combination for The driver relapsed

Moving now slide six.

ENHANZE which Phesgo fixed Globally, combination Herceptin. In major our ENHANZE. which approaches FASPRO global like with commercial DARZALEX most addition wave two two technology. global antibodies markets using are Perjeta four -- therapeutic one of products. dose more recently now launched other our begin DARZALEX, I'll is patients XXX,XXX is received utilizing products Phesgo to there and have approved in than a products of

Phesgo As launched during several administered five to to in an a hours the quarter markets reminder, of initially the XXXX administration in of first quarter in Phesgo third XXXX. is launch for IV. the eight compared US and minutes the in European of was time

and move in from US the quarters the X Herceptin MabThera quarter. is now uptake strong by to of Interestingly, launches of growth more continuing call to IV On Now reimbursement sales continue XX HYCELA, X that notably, markets CHF is second billion of sales in biosimilars. immunoglobulin we're Roche impact continues called up as with sequential Roche that subcutaneous now Herceptin to with and the CHF Wave CHF noted Meanwhile, approval number oncology And Phesgo due the and the HYQVIA. Roche In of the also form drug of first announced we Perjeta. use of launch in is Phesgo. half Phesgo which quarter, is is the cannibalizing Phesgo’s new million, The sales year by evidenced by RITUXAN Roche's therapy I’ll several sales XXXX. in see sold a Canada. noticeable of of and a countries. in reported products driven our in the recently first experience Takeda beginning as Europe million Roche’s in anticipate, to following XX launch Hylecta largest growing adoption launch would its commercialization results to continued ongoing and its Perjeta increase modestly recent declining SC of sales into half

brief the enhanced an I'll X then overview discussion and Let to into of a partner. move and with review by our me slide move now and a development begin portfolio

Let's products potential the products. Wave they of Tecentriq Bristol's today wave are begin launches. Argenx’s development efgartigimod. These Phase Roche's X and called that the launch are and These nivolumab, next X with are in include

are We development XXXX. X year. study product expect a to that informed today initiate historical program Now expected in in the to that fourth now a XXXX on they represent timelines, based X to the the in frame. Phase time us Phase redevelopment this launches initiate study products Recently, XXXX Phase X for had partner potential

with development Moving five good pipeline, during products will made two during first enter XXXX. clinical progress new to already We've clinical the the quarter. we starts here development earlier new expect

in projected with ongoing in XXXX. that we time are setting our of profitability, The products in heard, potential flow. will the X way potential growth the waves of and XX launches in utilizing you've multiple ENHANZE cash products products the revenues, development by will development that and Phase up, for be for launches deliver these project starts, product is today we end XXXX a to represent ENHANZE pipeline as future total of XXXX With long-term This programs advancing clinical of believe frame.

We're of with patients X brief with nivolumab quarter. start in to provide using beginning advanced Phase Let the call. me the during Bristol-Myers our on select the discussion indicating carcinoma the quarter results cell now confirm patient or pleased for Squibb, cell renal study first metastatic technology after first partners imminent of builds that enhanced Bristol was clear second

studies X dose relatlimab. Phase ENHANZE. three initiated These combination has nivolumab studies Bristol of with nivolumab, to and TIMX anti-CDXX, fixed include the addition In of and

Moving to to Horizon Therapeutics hands. of form within its of advance Pozzo TEPEZZA subcutaneous continues the

potentially Horizon announced moving convenience. the version to dosing Horizon Horizon an is peak it study. with shorten on and flexibility an offer call, later sales from forward If according billion. drug their nixed patients time year of initial discussions of developments completed anticipated one about suffering we As Phase additional hopes update further quarter's has this administration time, thyroid FDA has health plans recently $X.X that to that development care the successful, this last Horizon for provided subcutaneous forward. practitioner have a to and We exciting program drug look reduce in potential eye to disease,

the hands which four separate impaired polyneuropathy next Argenyx. to inflammatory The function. Phase leading continuous CIDP form ENHANZE is studied trials indications four disease neurological and X motor of being indications. Moving demyelinating or or development chronic four potential to efgartigimod a Argenyx’ in are subcutaneous with

The immune bruising disease. second and which chronic is a bleeding thrombocytopenia is

half being Thirdly, approval muscle evaluating to characterized causes consistent there’s with And of is in with XXXX disease half a SC gravis first enrollment And chronic a continue its of Swiss in XXXX of call, XXXX is of weakness. end is potential continues $X.X XXXX. X three study in second multiple I’ll billion Phase by recently cancer or top have oncology launch second first sales in the myasthenia in blockbuster initiated trial blistering with another pemphigus now and ENHANZE. Roche within for OCREVUS. the also This healthy with ARGX-XXX evaluating target four small MG, in they patients with indicated Tecentriq to Phase of ENHANZE recent of an volunteers. six vulgaris Tecentriq XXXX is approved timeframe. the studied On by expect move in chronic francs approved study ongoing in which lung is and is is severe on with and the nominated which year finally results trial Roche. skin. now its efgartigimod in development a cell and disease products complete two Roche's is Argenyx, SC was drug Phase point the which to gravis is half indicated administration Argenyx product results line ADAPT that utilizing with largest lastly blockbuster in stage and its hands another development which the is evaluated sclerosis. one non OCREVUS for myasthenia Okra's continues being the product

for opportunities And with growth beyond setting approvals multiple our advancing in partners Halozyme. launches are can progress We ENHANZE even growth see of This pipeline this exciting future and therapies progress described. long-term potential just is making this further pleased technology. we I've the are that revenue using drive up waves

We're from new that the and into opportunity addition to than moving open nominating having partners, collaborations XX in current agreements, in pipeline projected slide here. advancing the XXXX now from create outlook next or we opportunity three-year for have I'll the months a discuss our wave them With Products we're launches slots, to development the to In potential growth how progress time the into to period. for for to clinic. revenues development have expand pipeline milestones. programs through also to XX new more new as new of XXXX current our excited XX nominations to reiterating the revenues collaboration partners of access result the drives X current arising potential new exists targets move fifth partners to again Halozyme. by

milestones blue three-year project through to XXXX, green You reflects XXXX $XXX we're can commercial that revenues, new represent continue these $XXX we against that our since during our development see projections. annual actual bars to and bars The partner performing here for in demonstrating for XXXX represent period and that expectations million This milestone well the million milestone outlook revenues. and deals.

of our XXXX for of is momentum the extending milestone We near-term remaining milestone billion milestone Halozyme’s $XXX value of currently to $XXX in projection line commercialization our future We risk Specifically, projection still to programs making for our the see period, against to the adjusted the XXXX technologies million, months sight all and already evaluate to $XXX XXXX. projections XXXX million. with of the projected and indicator to assuming excited have revenue with XXXX strong that accelerating $XXX this of other to the we growth at point in million in incremental we're near range franchise. we proven with revenues of certainly indications. and through global six strong the through $XXX for revenue to for We're time, for royalty and XXXX potential $XXX on technology have long-term At create based known ENHANZE by achieved platform continue the And million million top revenue with and of and important we halfway progress ongoing technology opportunity June This same revenue predict projection growth revenues. in progress new potential an million $X an applying, launches acquisition the partnering revenue the royalty platform goal expansion of approximately capabilities. for growth. potential period,

is Now, its as in we've still said before, cycle. growth ENHANZE early

here in So, have we what we be highly opportunity the to choose. selective

for call with a financial over discussion quarter second turn to the the that Now, I'll of Elaine results. update,

Elaine Sun

Helen. you, Thank

adjusted continue double a of from prior we exclusive to basis and the non-GAAP strong provide period financial driven I'd year will a we for sales measures began was basis. commercial these increase million. will measures DARZALEX product of again and last non-GAAP provide continued key our do measures in addition performance, financial a begin, of in GAAP of and Roche the I We to on by extent to revenues. as of amortization, revenue quarter, year net three support in results, more growth second our Janssen our our our be also This and and by Highlighting total year well royalties related guidance events ongoing be XXX% on per like financial for effects. sales than as unusual launches reporting uptake was from primarily to in of considered reconciliation were higher I'd significant such and global filings factors affect you directly non-GAAP period. quarter. X we in by million the from the useful income the a over that $XX.X of operating $X.X consider release review revenue Roche's to ask our million quarter a not prior prior by because earnings to that they Janssen that strong period driven stock-based our a now was a $XX.X to note to partner tax important share. operating our subcutaneous hand gained utilizing sales With non-GAAP We their revenue for the Product Before up to quarter their all partners lesser API what performance sources Phesgo. some press product of sales slide turn and core quarter I'll GAAP growth million. quarter $XXX.X activities. second for in million, and ongoing refer $XX.X of as compensation, the the was of Revenue second primarily for This

in million Moving the the revenue, in million XX% year to $XX prior up $XX.X period. from collaboration totaled quarter

in the commercial earned we that related from $XX In fee was in license million momentum to DARZALEX. subcutaneous highlighting the quarter Janssen from milestone addition collaborative recognized revenue the million continued ViiV upfront of $XX to a

of second product turn second slide me Let of from increase of programs. from operating the in the prior expenses support the year compared P&L. operating breakdown prior-year up million attributable in year operating compared of $X our $X.X outset $XX costs to million period increase were we total sales and SG&A prior-year million $XX.X This with of more level API in million million the prior-year $XX spend. period now to $X.X of million expenses cost expenses compared the with XX quarter Total excluding in for cost expenses the the quarter prior goods $XX a million XX% to for versus higher in enhanced and from period. were of provided decreased overall the was expenses $XX.X products partners’ development sales year second goods period. the in in Research million the higher resulted million period. the The which of of in quarter year second the detailed the with in prior our and consistent markedly Total million quarter at on in $XX.X guidance were period. $XX.X

GAAP in $X.XX now quarter basis, result, and On of for period. prior-year in diluted XXXX And per income on share a $XX.X this operating financial GAAP $X.XX per a a million $XX.X period. share or compared the was net the $X.XX respectively, prior-year XX $XX.X million the year the our model. to share, prior $XX operating line of or top growth a million GAAP income of per turn we diluted in adjusted or respectively, $X.XX income quarter net achieved million million our share, slide $XX.X net I'll in diluted with the terms of to million guidance. discussion our diluted and to for of $XX.X or line, bottom leveragable and per income income was basis, non-GAAP As business compared strong for period, reflecting compared

the our on would of We expect year collaboration XX% of the our $XXX are million, based far now guidance $XXX $XXX pleased over to revenues revenues up for B guidance which XX% substantial be strong half We the already of total raising to so our prior is results This XXXX. year-over-year first to and of million. million million with XXXX for latest represent year. the $XXX growth in to from in

components revenue. Moving of to the

by As levels our we continue than more partners. ENHANZE to sales from XXXX driven bulk XX% XXXX product increase to and expect revenues to primarily levels from to royalties XX% to API double sales from

ENHANZE milestone, be expect than Given would already for income to we revenue to collaboration over we be a meaningful this translates to And expect we of million growth. than income under the to collaborations income million. in we $XXX achieved million, commercial our in which operating now to net net growth now new of to net and with XX% $XXX greater the and non-GAAP ViiV higher and $XXX $XXX collaborative XXXX. $XXX in to operating XXXX range revenue respect XX% XX% GAAP million bottom XXXX margin. line income, expect And represent $XXX With million strong to million GAAP of

a is Moving both $X creation me and share, sheet, per balanced internal $X.XX guidance growth per now to been lastly, GAAP to of commitment diluted slide to These This over diluted $X.XX of allocation balance growth And summary from XX to of With of a XX% share, between regarding EPS return to capital we include repurchases per up via we strong representing to XX% and expect to per driving $X.XX $X.XX XXXX. $X.XX turn expect XX% over priority. consistent value for and EPS share. to approach and that, earnings GAAP share, external XXXX. maintaining our of per capital non-GAAP of return. growth. We've our growth now let XX% EPS representing share our capital

goal repurchase funding internal to-date via program, We've return, to progress longer-term growth ongoing which XX. made the we to and And of million by $XXX the with XXXX. in we shares additional shares driven projected June up We now quarter, price and average both of of our during M&A of flow a million in at total report that repurchases million well share strong of our we've free as initiated with $X.XX. year began have common And in $XXX in million $XX substantial of as XXXX. I'm as completed to anticipate our external purchase cash this an both during capital year, ENHANZE will strong our sheet repurchasing a the balance support million second the our cash $XXX share We cash goal equivalents commitment pleased with $XXX an strategy. with of our November three-year

As common million And up million a reminder million of repurchased to-date, shares our we our price initiation $XX have three-year the program, in our authorization. $XXX an remaining since average at have $XXX under share. of current share $XX.XX we per buyback to

I'll So Helen. call with that, now back turn the to

Helen Torley

Thank you, Elaine.

for Our allow shareholder coming in return strong the Halozyme us the deliver products robust maximize sustainable on and value. years, revenue our pipeline profitability will revenues, capital commitment of cash growth quarters and a maintain position partner our shareholders, flow place our to in and to strong indeed growth long-term in and growth development which continued to

in XX, we events we slide summarized value XXXX. multiple to on continue expect As important driving

for to SC adoption global launches. and momentum project launch in window X or already year end. by total markets and Phase a the the resulting of if development XXXX of three XXXX. time additional new X with through for broadening are and expect in FASPRO additional We proceeds, way having launched completed represent, We starts launches potential DARZALEX use Phase XX testing to in continue in These products

I'd our and sincere a the growth. terrific thanks your you Operator, development. add continue been these new to pass Elaine on for team new by call have we'll I just to that and can results. into sign to growth create to you delighted None each here questions? heard our revenue and opportunities technology attention platform agreements finally, your And today. of revenue targets Halozyme, terrific we collaboration to everyone please seeking terrific will now We're would seek addition, for advance would to you the results of the without the long-term take you work questions. to to new identify In discussed open at possible like for Thank

Operator

Cantor Speakers, Instructions] question Charles [Operator from Fitzgerald. of first the line our is of Duncan

open. Your line now is

Charles Duncan

secondarily, Congratulations candidate? I Hi. validate question And quarter, for collaboration. start looking for candidate IP believe Helen wondering that I'm there that that's had could, guess, a I and year Elaine. you the is taking and if co-formulation questions. that great Thanks prophylaxis also you then the our next a could Yes. around Phase pre-exposure on at. I you're observation. X first anticipate ViiV with a potential on

Helen Torley

Yeah. Thank you, with Yes, be studies cabotegravir. as HIV in we have, and prophylaxis move two Phase would you're Charles. CAPRISA do aware, the But into pre-exposure with This gone NIH. first you're the right. X

discussions working co-formulated intellectual that on So regard on has beyond for we're with products. with for -- comment not as beyond result shared on begin very novel I excited X to findings such publicly that. potential ViiV be And in With Phase that. could we to can't the of gains property X Phase plans ViiV this like start all our programs,

they believe But new to have lot tuned that. updates So find begun they'll novelties of on for if or shortly. patents. in conversations And stay very opportunity there's still we haven't a result those begin that co-formulation

Charles Duncan

you could to would growth new then broadening FASPRO conversion imagine in Helen question an one of so even DARZALEX thinking terms guess far you broadening conversion. be impressive, FASPRO, Okay. conversion and what for level about ultimate conversion the regarding then anticipate new guess an indications would and I be with XX%. from And would that I use last And come or already But the use? impressive of DARZALEX XX% royalties

Helen Torley

Yeah.

estimates total $X.X from with I billion $X.X seeing with question in in have going use. billion great XXXX. consensus was are We reported to certainly start Janssen billion of product the DARZALEX broadening $X.X Charles think first with to it’s I half and that the the the now sales increased momentum

subcu penetration And particularly We is frontline to that's especially where of of believe if the the increased is pie into going so definitely we bigger. you the getting like believe size be because therapy helpful.

pretty So impressive put there -- is year higher but basically their stopping. good sure Charles. we're and we are there, to the it enthusiastically obviously haven't and patients. some shows out for physicians marketplace. put of bigger physicians we believe it'll bit it's talked that, trend go fulfilling the then not very than indications a pie on and line it. number going conversion with And not number a It's And But to definitely recently converting at We're a these after need important amount in XX%. we the a new an

Operator

question from line Luchini Next of of BMO. the is Matthew

Your now line is open.

Matthew Luchini

afternoon Hi. very congrats for a thanks questions on the and quarter. taking Good nice and

Phesgo. on first So,

that get what latest hearing lag to a a a you you're continues brand market. the from in dara’s perspective more, on wanted can impressive share Just it little bit little seeing to bit color latest your and admittedly ramp. Since thinking, --

think you've love your types out secondarily, then there. you in payer in about talked just differences the latest your year. I share thinking finished the And for and repurchase But past. patient mix

you. of about how we do on program we remainder how out allocation mind? Is do for So, reason Thank why you maxed the the allocation your share that's think of given stated think there repurchase wouldn't any Just year? else some from something you've about remaining a the capital year? capital pull the Is for there repurchase here forward? your

Helen Torley

to Elaine. share take I'll and great. question Phesgo I'll turn over That's repurchase the

in launched, sequential to when So, all were of and the Phesgo, place that see Phesgo get if we'd we anticipated they take had time of growth. in then quarter-over-quarter for reimbursement a would period you US start recall, its to

see the see that we'll after for Europe initial markets got to had the start growth. quarter-on-quarter We we'd reimbursement also start expected to that

not and a completed tell same physicians QX some the can very interviewed. hematologists. their continuing just obviously qualitative subcu volume pleased same time shorter primary in the we on Certainly the the increase system use and think So, map. as oncologists potential treatment people result in the practice Phesgo. we actually well was And in. adopt market healthcare can fiasco benefits QX over with pace, research see not with of definitely we of of This overall by patient that group understood valued the that have many I I growth you But insights based of them that of and and type as more the daratumumab more terms of we're pace and in

as slower growth. address let than question albeit we repurchase. so with faster to we've turn seen the And that at result to a pace share over see And me adoption a it and for that, the Elaine continuing

Elaine Sun

to. happy Sure,

So capital strong a really by return. profitability our return M&A. three via working capital plan. still $XXX consistent that's external our we've and And year profile to already existing allocation by We're both growth funding driven partner in you enhanced growth internal our substantial through strategy and a both the noted supporting and and we've been made to commitment commitment to million capital buyback driven supported ongoing model our balanced as also commitment business

we capital XX% we're complete million while And through or fact an return. did value opportunities XX% shareholders, $XXX return, ongoing And commitment total over it for sustainable In be we the to maximize term still million we year. to maintain the We premature remaining. discuss growth that, of ongoing to for that commitment have $XX always way that long evaluate would had the capital beyond certainly our authorization. planned to specifics but to maintain our and

Operator

speakers, The SVB line from Bridget next Leerink. Smith the question, [ph] of is

open. SVB is Bridget from open. your line now Smith Leerink, is line Your Again, now

Unidentified Analyst

just a DARZALEX would as between on also well. Jeff there's not there's patent the useful Hi. even then end for Thanks. can terrific of results. question. the on royalties a be XXXX? SC This step-down so about the give And from and us that Thanks taking there DARZALEX? congratulations beyond Helen, SVB and that DARZALEX? if would whether will be that sense mid-XXXX, And on Phesgo, a of Leerink. now between there give you formulation is us step-down you composition XXXXs the of durability the Is indication a That is SC, And in independent the could from extend IP potential any helpful. for

Helen Torley

Thanks, Yeah. Jeff.

there give As But step-down And there and XXXX the counts that. are many, confidential, lose there our that, In based time any and valid we we talk master in get revenue able talked XXXX we down. patents, down is we a can't contracts that extend no are the they there is can't if step do that time it minimum in in a royalty US any. is I patents the patent cases of people royalties always do can composition and we're can no and and indeed, co-formulation preset general, tenure if our of to in to being patent duration provide details when in Jeff but of which is instances. a not is the all Europe -- additional step granted, model patent, make also valid we've we for as a specific the in individual because about what think XX-year would on XXXX. that in which case a in term we it recommend to its XXXX investment that beyond decisions What know, generally absence a we unable base is investors so many our where be that have are the where and have assume this specifics of

Unidentified Analyst

as just about specifically molecule Great. small the would Can far with that's seem the the other it subcu could ask first develop opportunities partner a was want you other as this might the or options for I in instances formulation? with long-acting just follow see I up, do And be know clinic Helen? to and [indiscernible] where ENHANZE, many partnership. you because there I

Helen Torley

molecule always at Pfizer the we've don't of know back and was if recall something it's Jeff, rivipansel, Yeah. you studying I that looked small approaches. one when actually was

utility and the both So of molecules. is large ENHANZE there we've recognized with small always with

few a definitely at are we So small areas. molecule looking

to here particularly and as opportunity the have we large mostly work as successful products. molecules. But large We mostly Most well. see antibodies be in monoclonal those opportunity of we seen blockbuster small happen molecules though with

portfolios, at not delivered the of molecule, or getting interval. subcu on And drug at in company commercial reducing extending so the are looking is putting goal the volume, dosing any really we size what filter looking the the always terms of the

So in you future. see more the may

Operator

Sun the Na from Next Leerink. question line is of of SVB

now is open. line Your

Na Sun

just now. you. to Thank off My Jeff. sign I'm were answered questions Hey, going guys. by

Helen Torley

Thanks. great. That's

Operator

is question Next from the line JPMorgan. of of Jessica Fye

is line open. now Your

Jessica Fye

Hey for there. question. Thanks taking Good afternoon. the

following the on do the think sort capital version With how complete allocation you I'm of authorization, repo up the with just that's a period earlier on about the million $XX technology sense might question. in longer-term in period? make when of to build some potentially expiration to cash on sheet it kind kind acquiring of anticipation patent the fill and post-ENHANZE of after a future So, left balance

Helen Torley

that, that Yeah. Jess. I'll turn over Elaine. Thanks to for

Elaine Sun

Thanks for that.

with sheet to see our flow continue the our ENHANZE operating to So, strong cash we've and noted business model, we we profile balance the strong as generation, performance. with potential strengthen the growth end

strong to We take sheet. opportunities advantage sen first of of our and historically notes. quarter to cash so in sheet balance certainly with outstanding add our of year also did of repurchase to leveraging the balance a strengthen convertible market this We the XX% the XXXX

managing an our our maturities, out outstanding and liability, So of lowering pushing cost capital.

wherewithal look leverage to we performance opportunistically a to balance to our for position our existing opportunities technology advantage our not acquisitions to only and to sheet expertise with cash returns, be continue to a in strong operating the fund value ENHANZE and and to strengthen So commitment our we be platform to flow also can structure, optimize take drive and shareholders. able great of new additional financial in our we us our potential that puts think the of capital able but have to this from capital combination generation

Operator

Next Anita question line from Dushyanth the is of of Berenberg Capital.

open. now is line Your

Anita Dushyanth

-- versus ask are I candidates among Helen. targets many to you think. the you how wanted stage just on quarter. Hi, late the quickly the undisclosed total Congrats early if

Helen Torley

right. All

up a Anita. You little bit, broke

Just products amongst to late-stage the early many undisclosed. be how are versus sure,

products -- So get there’s Both let deck, me those correct those see just our people undisclosed. probably are of two are named we'd on in corporate that myself.

as we IV the clinical one in is studying and where other the is subcu. those product are of One Phase testing X the an approved

Anita Dushyanth

helpful. sort then landscape are kind opportunities, sort to very you of you as scanning timeframe are That's that of this -- your move? technology as of potential already the so Okay. sort looking if proven at the make likely far And of for and what

Helen Torley

Yeah.

As we continued I experiencing time mentioned is ENHANZE in because strong the don't growth, the feel we that project pressure. prepared growth remarks, and

And been high have by and will that already it your which be has compelling may work. be right think data pick sure we FDA. that ourselves the we probably presented it the to de-risk use is this. in because So has something it or could technology it's Anita, we we got something program been where window time that's that generally approved given make I We confidence, to language reviewed is part want achieve is more that the thing. haven't it that the important And

very definitely profile story important to think are the is we to for our confident something So able de-risk of a of be it's growth in ENHANZE add because that's that looking that part to we right timeframe. the be to going

Anita Dushyanth

the going Okay. early that the the Are are there. from you Thank any with out especially specific indication process to candidates I you. programs. sense forward? And something expedite in to ENHANZE way safety seeing the developed the is still looking some likely me. into more see just stage, in And are one that are of FDA kind does programs data then are different know late it of of we the those being so stage terms versus difference but having much of in that sort

Helen Torley

product a bridge where seeing developed development can is the bridging parallel. IV with a as approved actually companies we're products like paths. is currently developing in two to One where database a with they're that larger or argenx, which So be probably indications study are it's

process the parallel. approved database. So, subcu and where the able you that's but the IV what IV the are And not bridge are generally progressing is to yet, in to larger

database. be to IV broader were from the subcu seeing an slightly have higher you just the doing requirements patient database We safety would right there start. And if are isn't

generating For the X/X key And of requirements. pharmas robustness not they enough big Phase Phase data traditional the what's just through complete X to with X to safety do FDA go is in study. required database, X, meet to that, X, is more data Phase have a or thing the But a than that a the to on we're of seeing the other expectations the safety difference expectations. of Phase amount

Anita Dushyanth

Thank Okay. helpful. That's you.

Operator

DiFiore of line the Evercore from ISI. question Next of Michael

now open. line Your is

Michael DiFiore

quarter. the congrats taking much on for question so and Thanks guys. my Hey,

of to new clinic two any subcutaneous And three to this the have be Alzheimer's Halo for formulation? so, one, could the does Number me. enter Just a develop this have And plans if follow-ups. one I therapy assets year?

Helen Torley

individual say the example, don't beta that can can approach we wanted I amyloid discuss is if is use target Well, what available, targets. us -- as to But still All what right. that. anyone I an say they to

Michael DiFiore

Got it.

Okay.

the indications And the The and on we one profile gravis X results just the expect version? to any on you. especially efgartigimod’s announced myasthenia in efgartigimod, of light versus second in IV versus of of competitive subcu gravis Halo ITP July. in formulation much heels the how Thank thoughts Phase should is ULTOMIRIS take that, myasthenia

Helen Torley

But studies on patients profile. because preference can projections. and I of I phobia that for that, of want of the seems of patient a of different and it where go my I -- to thinking to in a -- qualified that not regard seems versus to wanting would call to a and with can't physician the of But moving we XX% stay I on to don't, I Argenx was in stronger the our on hear many say Alexion small our IV. they that's my had, What not it got patients note Herceptin of leadership. There where With on ULTOMIRIS. molecule. percentage needle area. regard investor or from we there's Argenx who the seeing XX% give points feedback it have practice, the being did that think this in line perhaps about opinions everything that don't expert I product, subcu. community have patients an subcu a Roche I that will based will perhaps comment yeah, cannot certainly perhaps they're the comparatively expertise experiences commented patient I'm on suites much the With informed have certainly indications, the it, their still with of [indiscernible] and their I'm of is the on as don't out But much say subcu specifically leadership versus to efficacious to on do pretty to feedback to to recent on and Yeah. reported by because -- say always differentiation Argenx Argenx more strong IV is reading a be reading interesting believes say I versus they infusion

benchmark that prefer So to was I that IV. stay subcu might mentioned with just staying to with a at useful the to move felt XX% the argenx to remainder XX% on the

Michael DiFiore

Thank Got much. it. you very you. Thank

Operator

Suvannavej question Goldman of of Sachs. Last from Graig is the line

Your line is now open.

Unidentified Analyst

is think One in This for XXXX, particular for wave and optimizing beyond from for improving just around Thank improving the excellent about And you. if just those material questions Thank frame you quarter. room how we an slated Anna the the [ph] raw -- help you on on the us our there's Graig any product next growth congrats and Suvannavej. should for launches XXXX? high taking beyond two, production. curious of level, could

Helen Torley

a question, and Annabelle raw is our me let just material API? the Yeah, bit that clarify,

Unidentified Analyst

Yeah, right. further done that to could there that's optimization right. reduce be costs? That's the Any

Helen Torley

useful in find waves to Thank products. Okay. it Well, we of talk you. our

sorry, timeframe, the are in -- in -- today so, time about in the Phase those And XX products to launches thinking wave XXXX we're if XXXX X.

to already with So, time everything standard those seen if according about think as either a should that analysts all we've on that of lines efgartigimod, with billion OPDIVO products be those case and we development as of it time brand. based all launching Obviously, goes in see potential have blockbuster as the efgartigimod $X plan. in them where blockbusters potential exciting or of drugs

it by we or having that the that, will testing. end X products estimate in Phase year, this completed Phase And XX have we'll are that products the of X. is be in Following

XXXX portfolio. approximately a years if is and from potential, there that's that you products that at approval. Now ones terrific next to in again those exciting in first very products human the would if as to five those And look XXXX follow be

nominations, set possible mentioned, time that, next launches new to which XX as into for as, the so well on targets collaboration the months, beyond bring that into I launches. partners us in even is the clinic and Wave based agreements period. taking the And in of XXXX another as current X And is way XXXX to XX could

predicting the and And a robust development launches, message we really have works driving because such and many revenue additional are is, to multiple and work the the beyond. way continued and so can XXXX partners sustained pipeline, with so we

Unidentified Analyst

Great. Thank you.

Helen Torley

more were All queue. right, on that -- Operator further thank No there you. Operator, questions questions? any

Helen Torley

exploring next support Halozyme with Well, execute half for and right. our Really quarter strong we growth appreciate you. Thank the look a to we appreciate M&A. first to returning very add potential value forward Obviously, strategy, All maximizing the accelerate our our to to attention. and ENHANZE, shareholders quarter. through you as and continued everybody's and speaking

Operator

Torley. And today's that for conference. you you, concludes all Thank Dr. Thank joining.

may You now disconnect.

Halozyme Therapeutics (HALO) 10 Aug 212021 Q2 Earnings call transcript