HALO - Earnings call transcript Q3 2021 | Halozyme Therapeutics, Inc.

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Operator

My name is Frank, and I'll be your conference operator today. At this time, I would like to welcome every to the Halozyme Third Quarter 2021 Financial Results Conference Call. All lines have been placed on mute to prevent any background noise. After speakers' remarks there will be a question and answer session. [Operator Instructions]. you. Thank Mr. Kildani. Al Investor call. of Corporate please Communications, Vice Relations your begin President and

Al Kildani

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

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

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

Helen Torley

strong represents Thank year-over-year the included ENHANZE third the to and you, and growth from pleased on XXX% which of growth by of million, Janssen $XX.X quarter of $XXX.X of million report $XX revenues subcutaneous. a which performance reflect was of commercial $XX.X strong revenue royalties million, quarter quarterly Al. results milestone by financial business. record revenue which continued continued our DARZALEX resulting collaboration driven growth I'm and reported momentum third our We This million. from

tax income to of at diluted the GAAP quarter $X.XX. non-GAAP per an share our was and benefit related including allowance earnings was earnings saluted tax share release Third $X.XX, valuation per

XXX for of million represents performance XX% increased XX% to year-to-date to $XXX XX% growth strong $XXX to XX% over prior the representing operating million, guidance million year. prior income income which end growth guidance revenue the of lower million are $XXX we Revenue result now over a guidance year. Operating XXXX. of our increasing and As is to to is

results one related earnings for now an results GAAP demonstrated of GAAP we a durable discuss share increase call. adjustment of guidance to tax share rest earnings end to This profitability. detail guidance earnings the also $X.XX the the pattern a guidance addition, with have we financial to in of lower our range will in $X.XX. for to in In $X.XX have We're our raising along share to that later to per range a $X. non-GAAP a updated guidance our of of our Elaine

what subcutaneous following has increasing royalty utilize PHESGO. ongoing DARZALEX, Strong from and million. me royalties. $XX.X had by Janssen's and I'll turn and of some global were ENHANZE to quarterly technology third during forms our of contributions growth begin quarter details successful which previously by primarily been the XXX% launches record This sequential and growth year-over-year Royalties third now represents provide three and XX% quarter progress with slide events, revenues. key the royalty growth on been Roche's a driven Let

DARZALEX multi-hour technology. and year fixed full products, call are growth also growth provide XXXX, robust products also called Herceptin. Roche's in in the now continued which is XXXX see DARZALEX the anticipation on case, The over of this than slide Faspro, margin recently to than high more There patients Globally, project is administered which driven are In recurring we can products utilizing royalty of minutes ENHANZE. which our For doubling revenues most ENHANZE times a the IV major on key approved using some now to have received health utilizing Perjeta we our versions. each the commercialized reduced mean care listed primarily continue subcutaneous based by XXX,XXX products for this Wave global ENHANZE PHESGO, I'll version DARZALEX most for patients markets products four. This revenue resources. the can and to treatment on more and We're treatment highlights launched stream. in be five combination reduced continued delighted subcutaneous. which technology, our commercial X our SC, in compared burden just the use of dose of in

color subcutaneous. some DARZALEX to five on DARZALEX I'll slide Turning now provide and

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

On J&J therapy third in growth of was quarter continued gains the share five the U.S. penetration in points reported and share increased globally Europe, States by of in driven conference, and a formulation growth the further of lines launches this United with third nearly across stated quarter. all the subcutaneous the

United myeloma is can recently can will support after that opportunity several growth the continue. clearly for which patients combination DARZALEX the July growth XX% in share Turning you the announced Faspro at project sales Janssen increase the of strong each subcutaneous Symphony of chart and in subcutaneous month achieved for achievements trend This from Pomalidomide regulatory the at according Janssen FDA in dexamethasone the last data sales for DARZALEX of XX% States a or right Faspro now subsequent September. is United additional percentage illustrates myeloma to Driving an DARZALEX, share DARZALEX, from of What DARZALEX beginning the multiple last of The end continued Health month DARZALEX with with quarters of relapse. Faspro potential approval on with States. first four we received total in June. represented during to in multiple see

from light treatment of August. China DARZALEX light-chain, light approval followed In chain amyloidosis bortezomib, Products amyloidosis. chain Janssen authorities and dexamethasone. with amyloidosis in received now use subcutaneous to primary for in in primary regulatory Administration the for from newly Japan Moving Medical approval for systemic for diagnosed DARZALEX, the of cyclophosphamide Faspro This combination the October National

third in the much I'll come. product demonstrated a XX% quarter product, country the continue sequential launched sales sales PHESGO of States ex-U.S. third more for the now regulatory francs a the We're reported and quarters million our launches XXX than second which the growth. up momentum from quarter, of in rollout on in and move the of swiss swiss of Roche we representing saw year. the the in still second million francs XX decisions from to stay that to Phesgo sales X approval. in were driver time early in XXXX built brief a close quarter longer Halozyme or growth DARZALEX take Wave can compared of United reimbursement began year the a time Europe. PHESGO, first launching stable to where royalty In overall quarter second regulatory first to QX quarter and X the will third the launch with XXXX the on the of in was QX. Wave expect With momentum I'll be for and comment in we of just

launch X. with development which me potential with slide the predict sales analyst highlights. X frame. including now projected the to to Excitingly, three that these in and launches These on represent a potential Phase in products ENHANZE in X products are recent include wave review historical products. Based next exit move products are time will including alone that Let of XXXX six the Bristol's we I'll are development than a XXXX XX $XX we few of a products X have consensus. three we of portfolio products Phase launches in development partner my Wave on have in and begin in and XXXX nivolumab, efgartigimod. based Roche's Today Phase billion Tecentriq these timelines three Argenx’s XXXX greater discussion

potentially on the where product of sub-q addressable upon single-digit mid net this subcu a opportunity average we product a of receive very beginning in royalty market attractive Halozyme XXXX. For represents approval new sales

earlier products timelines X which time in pipeline currently are to project. completed Phase the on to continue the X continue potential frame have historical XXXX Moving Today, they forming launches. if to ten the development These to have in XXXX Phase in which Wave the the X. based products we we in launch and products or have

the studies be the its In indication myasthenia States, of date IV to a future ongoing. launch potentially X making race deliver waves This the for with in potential Wave of new partners ENHANZE XXXX of XXXX believe and PDUFA during launches first could phase products our argenx's currently the quarter. will such the diversified is strong next and utilizing in efgartigimod exit and completed leading form we launches. for of the United the the with We just will gravis phase elected across potential our transcriptase, multi-vocal we're this X efgartigimod, pleased of is efgartigimod product QX be quarter also expected looking fourth United chronic been three And populations is program the pemphigus. this I'll for the large a demo highlights the studies of XXXX initiate product in updates. with multiple thereafter studies in effort The few data XXXX. forward ENHANZE With December in are evaluated projected very year. and XXXX of are that version starting the inhibitor. a the expected as Launches of four thrombocytopenic outside of second HIV trial remainder in studies rate of these third growth. being subcutaneous pipeline or potential let X other of ongoing XXth clinical efgartigimod. X with growing to XXXX, projected that XX for launch. XXXX which our share the target the addressable additional long-term me to States with starts collaboration Jenssen to inflammatory half much is of the our reverse it unmet advancing entire is the is study. With multi-billion Japan to with shortly up portfolio Europe will The begin progress subcutaneous revenue the we're that setting the opportunity in exists phase hands. dollar ENHANZE a subcutaneous first July and And with with potential are currently explored And amivantamab. ARGX-XXX, and underway Phase announce be plans projected program of for working in projecting for CX first Janssen, This demyelinating the news on to gravis a a resulting and in Argenx are purpura gravis motor indications pleased already myasthenia a neuropathy. we're in DARZALEX in mid idiopathic treatment by each size following in Myasthenia was which that's in analysts X be indications in which Argenx within supporting a the polyneuropathy, The indications need ongoing

we launches. predict Wave including X. clinical have we and with partners, exciting set the three end in forming XX products products by will what of in is X Now is Wave potential progress X this of XXXX strong this by our development this Phase And

Now royalty just a me beginning about to let revenue co-formulation with additional for the patents. take continued drivers potential durability growth and of moment three talk

can ooffice the we duration of you by findings. as have the patents In co-formulation effect can or granted relation novel the co-founding time may if that Now royalties. unexpected for remember be patents extending receive patent granted general of

a As first XX receive the minimum commercial years royalties for typically we of reminder, after a sale.

products to corporation co-formulation for new as and of addition, to Europe, than opportunities the the opportunity to to I'm revenue deals. are in of new timing includes report discussing later United these look agreements. that that new in durability result here new collaboration may ENHANZE patents information development filed next delay we States. small to several pleased to opportunity becomes durability continue the And antibodies, updates recently with patent potentially the then the molecules the relation provide drive monoclonal on to and bispecifics, in increase further opportunity cell public. companies ENHANZE a able relates third further than programs. therapy growth We too We meeting applications forward development later as revenue durability and see The step applications partners and being XXXX also related royalty In pipeline. to in XXXX have can number

As they create royalty can And project a we potential that partners nominating what available reminder, a new by agreement development X the believers beyond. targets form additional slots and than the more royalty expanded we and that we are XX current may from what further three long-term of from collaboration strong and growth these to currently call not new be These XXXX developing revenue open have. trajectory are would Wave currently in would Halozyme's Wave expect programs projections launches. X arising included

slide Halozyme. now three-year Moving milestones. for again seven, reiterating I've this revenues for outlook for to just discuss drives We're -- pipeline I'll projected our progress described how our revenues

technology revenue that ongoing and revenue important global sales line to we is indications. XXXX commercial in franchise. our against indicator future actual and are in through strong royalty project This since billion approximately potential revenues. in well that For We growth deals. projections milestone XXXX partner revenue based reflects million on $XXX momentum for milestones an that and potential revenues. revenues the outlook very $X all projections. XXXX to of programs million for of and by ENHANZE and represent expectations represent for we period royalty We're during have bars The This blue to $XXX performing currently milestone milestone continue new XXXX of demonstrating near-term this annual assuming sight our non-risk-adjusted development and we excited our project green bars three-year these

Now technology and to continue partnering evaluate accelerating extending for the acquisition new through incremental capabilities. the to applying create revenue platform other commercialization the Halozyme's platform for proven goal long-term and We same value the see opportunity of technologies time, expansion with potential we at growth.

growth ENHANZE As is still early cycle. mentioned in its we've before

So to discussion a the quarter selective. to highly results. be the With for pleased of financial I'm opportunity third to the over we now call have that, Elaine turn

Elaine Sun

Thank you Helen.

on what Before the a revenue which over XX% $XX.X the me the a begin to revenues. by XX% financial measures Total do financial royalty our With Janssen I'd ENHANZE for that, non-GAAP press driver that for useful GAAP affect filings increase uptake to and operating to from from I'd turn note The accounted to our total of that on our these by important lesser performance period, GAAP to for and core utilizing the be to of global of non-GAAP events to year third revenue million, launches this revenue based quarter and in basis overall prior non-GAAP consider We a non-GAAP a operating earnings adjusted revenue and basis. as our you income again amortization well compensation Royalty as a let of quarter. million. addition now And report from provide we biggest million, ask quarter because consider revenue their was effects. Recurring and to I third up of directly key growth third our And year of of be factors driven the ongoing share. they performance unusual excluding measures also by such eight related guidance a our provide of as subcutaneous and for was strong net stock for $XXX.X of slide revenue $XX.X million. release refer reconciliation like measures $XX.X we Roche's quarter XXX% review a over PHESGO. not revenue partner was to tax per was primarily prior royalties. period DARZALEX in extent the continued

collaboration product overall in $XX Janssen partners $X of a to to prior sales million year million magnitude addition and saw for commercial fluctuate we is and globally. strong subcutaneous growth higher This our And year potential of by based prior third launches third $XX higher the ongoing the to the DARZALEX. the the earned which subcutaneous which in with the million. XX% safety achievement quarter, in $XX period total associated We commercial totaling milestone product with product revenues the their which million. efforts this commercial the a darz related period from of quarter. revenue sales, significantly Product million levels than in $XX.X in and was our achieved with driven in quarter reflecting primarily Collaboration in partner accounted quarter, we $XX.X on the also API of in DARZALEX. million support the milestone, Janssen were of collaboration of was in quarter of milestone revenue ENHANZE of consistent highlighting saw continued can second momentum sales period-to-period second of the was Growth requirements tremendous sales collaboration year revenue supply sales from commercial stock which the Roche product sub-key

in now breakdown product $XX prior the nine million me year $XX.X a period increase Let The and cost was from detailed expenses the to remain the were overall $XX.X higher the third quarter increase excluding including consistent support to $X.X year and million stock-based stock-based ENHANZE million, expected $XX.X up for to to of COGs attributable in more ENHANZE of prior which year was year. $XX.X from in level the in million personnel ENHANZE slide period. entering prior personnel of compensation period. prior for the expense $X.X prior markedly in from in our period. expenses I'll spend expenses API third with an turn our an of prior This year increase with expenses increase for increased period. development. in million additional million the of the to operating was for targets Similarly, year clinical resulted in $XX.X $X.X higher the third franchise. our support million quarter increase expense compensation compared compensation dollars from this up The for partners increase and were And primarily including programs million Total expenses, due versus million $XX.X with operating the Research P&L were period third our in which with quarter, support in total cost total operating goods development quarter. products to sales sales, compared were year in in begin million of SG&A the compensation due

profitability, our quarter an increase our top operating million, operating operating $XX.X GAAP strong XX% line in compared prior income period, the year of for income business leverageable GAAP model. of terms was reflecting the of to and In $XX.X million growth

So against to a guidance. our valuation deferred before share spend we to the income annual assets and moment get net financial on and and let me recorded earnings per our results allowance release benefit tax income the

in and valuation filing, income our our and quarter we tax release $XXX.X this allowance recognized an and As our detailed benefit of tax in deferred saw reversed tax as you million. earnings assets XX-Q

expense tax approximate begin and in will rates. tax be rate recording tax forward. tax XXXX will anticipate in tax utilize assets. We expense we statutory non-cash With deferred until expected our our that likely P&L expense substantially income We an to going fully

to basis and income. diluted share discussed was $X.XX net diluted And a period. or of on $XX.X I in per income On year net net $XXX.X respectively the share the dilution This million ago. share $XX or net per million prior period. compared the the a million was net diluted a Moving reflecting GAAP of with GAAP $XX.X of income or valuation non-GAAP per income basis, in allowance adjusted benefit the prior moment share X.XX that compared to respectively for quarter release of or million $X.XX per non-GAAP year $X.XX the income tax

slide Let our lower date here of of represent strong for to to year-over-year update growth an to me XX% in a guidance. million million. end guidance XXXX. new range million over to our financial to our that raising of I'm range XXX prior XXX to We XX% are revenues. substantial would from dollars total expect revenues due turn $XXX $XXX the of now pleased XXXX we up dollars report already our for of million revenues now This to XX XXXX performance

we more in expect components by product of sales partners. levels, to XXXX increase XXXX ENHANZE of royalties from from XX% primarily API continue from XX% and than Moving double to our sales driven support to to to the revenue, levels revenue

XXXX. we profitability million We ENHANZE higher model, represent growth the million, also in to And over benefit of we margin. to than a enabled to prior XXXX to range year-to-date continue as be non-GAAP million. than up expect million our guidance to the XX% revenue in to the line be already operating our XX% strong are prior now quarter the business collaborative to strong the results million, of to income $XXX million of now million. and $XXX range of be up by expect net XXXX for the greater under meaningful we a from the up reflecting raising, operating and we income to which recorded range million of to top collaborations end in million. of $XXX million, expect third due growth achieved a This of from low guidance the $XXX prior income new GAAP we to $XXX our now tax revenue $XXX to net $XXX expect would GAAP from income, million result $XXX $XXX Again, XX% million range $XXX $XXX for Also $XXX

in diluted a share Moving are XX% our to to between of strong represent the growth the now benefit the per quarter. end would summary to to share our from $X.XX creation This and a over of to new to we XX% progress capital up of diluted non-GAAP $X date. turn income recorded We to And for of GAAP per up per a XX guidance of earnings from share. range we and I'll a for now to low $X.XX earnings share, approach XXXX. raising and earnings per our prior lastly, expect third and prior $X.XX guidance $X our return per due $X.XX, $X.XX the tax to a value range share. $X.XX slide

been capital balance internal maintaining consistent regarding driving our have via allocation strong returns a growth. capital sheet, share and and repurchases These both commitment balanced external priorities. to We include

as external as driven commitment third of quarter X.X via average franchise by in equivalents million. ENHANZE in repurchased of capital XXXX, in of of an stock $XX.X third support continued purchases market quarter the million strong shares commitment the $XX.X million. And growth anticipate $XXX.X We an at our of cash of $X.X and our support free flow the October million internal returns projected XXXX cash price our and both both with sheet of of balance to the strong additional million share or a capital shares have Furthermore, open M&A. repurchased We or stock $XX.XX. common to will per return common end in as we well of we cash funding

with purchases those of repurchased November $XXX our a completed And fully began have to million program $XX.XX. million in within we program, stock. up XXXX that and authorized of two So board three-year million an purchase outstanding we share shares average for repurchase per common at our under to of that $XXX total of price share $XX.X years

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

Helen Torley

for Thank of expanding revenues, and to performance team, growing terrific strong you thanking work fuel the with begin in pipeline that's going our long-term that Elaine. partners I collaborators growing to income operating I'd Halozyme resulted hard by and growth. this our an the and like all very near

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

in products X already in DARZALEX launch PHESGO resulting including momentum launches. XX for SC predict markets year X. will additional additional We and the with in three continue Phase global use by in new end the of this Phase adoption and products study expect starts development launched We broadening and three through

thank our targets into technology to questions. now platform submissions. agreements, new us new create co-formulation open like In finally, we'd new take that our to And continue revenue for identify new be and patent that And sign advance seeking long-term the addition, to work we'll please we'll you growth. and today seek revenue to I joining can continue for your to you collaboration would would delighted add opportunities to Operator, questions. development call with seek to growth to

Operator

with from comes Cantor Charles question first the Your line Duncan Instructions] [Operator Fitzgerald. of

open. Your is line

Charles Duncan

taking Thanks for Congratulations. and Good the question. Helen really quarter. great a Yes. afternoon. Elaine,

Helen Torley

Charles. you Thank Yes.

Charles Duncan

bit any quick DARZALEX So rate there I'm your question I poetic on little ask be your to going you rate. I conversion regarding practical. reason maybe a credible guess in And couldn't here conversion DARZALEX. mind then XXX%. In that a wax guess more to is

the from the one about Would milestone, in mentioned the commercial You met XX program? revenue milestones earning this commercial million any royalties you're months to year second you $XX say in that beyond additional next anticipate you. this

Helen Torley

and obviously know as for XX% in conversion sales the Charles. question share some of the United rest or Thanks DARZALEX. We're rate States performance is to seeing of and world Yes. we the Thanks well. very delighted the see strong

the its lot and not There to going patient but patients is think get higher see minority does be the like may XX%. lot tiny a time want that there's opportunity we I and than going to may subcu. Charles, who receive there. who a suites be to for infusion there, lines a continued therapy And J&J. of the share I spending beyond seen occasional some growth with of the some the penetration do overall There so reported if would growth some as think well of to remarkable the the also product DARZALEX by also earlier pretty that increased exceeding out point I just bigger due you've is getting current share. a pie into growth overall is analyst expectations

rate pie continuing, is the is only conversion not So the bigger. getting

why continued we're growth. so is So about this excited that

We Charles. in with $XX are million the milestones that delighted

going you're more see from the coming to from I the royalty predominantly period think growth. revenue next growth in

Charles Duncan

one you And like to would another you relative X IV? SC see really question form to related is formula the like [Indiscernible] could that data IV a efgart subcu creating last added, mid launches. could much value the year DARZA Wave What Okay. upcoming a relative conviction next out value be to read DARZA to in data that of provide read

Helen Torley

Yes.

show the [ph] - is regard are trial IGP to lowering to with we obviously levels. designed think I well, non-inferiority

professionals injection to short, so without So, having clearly the to that's about administer or IV the healthcare simple interrupting is first the giving about subcutaneous life this thing. But caregivers their see or and test, I infusions. it that want able think life patient to some longer opportunity the their what patient's to a we without go patients are worry

those the be things So for are looking from I'd two the data.

Charles Duncan

looking be Great the We'll question. Okay. forward too. for Thanks quarter. taking

Helen Torley

you. Thank

Operator

line Your comes BMO. from of Matthew question Luchini next with the

open. Your line is

Matthew Luchini

maybe guess the so much congrats afternoon. for guidance on I Thank Good quarter. on taking Hi. and questions you first. the

So the raise but top the end end. maintaining bottom

to therapy we'd get for that antibodies the your little And color bit you. you just your fitting potential a is on, business in you've is say love opportunity conservatism into first how And would ENHANZE. priority more this of perspective cell And a color outlook? then sounds get into areas little Just mentioned molecules? more the of on product bit on see within potential how I bit Thank see think relative perspective type And more like maybe much a time as broader where the to little a secondarily particular you it small portfolio? a or like, to even year-end.

Helen Torley

do want going antibodies largest that come by be followed right. let then having then the Matt, advancing think companies molecules me could benefits bispecifics comment part think All therapy, to probably yes, to small therapy. first minority cellular the it's the say of in I cellular regard discuss and But and us and ask take clinic. I'll it's monoclonal and guidance. some Elaine the I the have to to potential fair ENHANZE. and with definitely We're more we're are a to with Well, conversations. With cell therapies on what more the second conversations with

delighted the we're with platform. of so, the versatility And

and and that more about these small people certainly with of with. duration even patient potentially experience I and And was what longer people's molecules molecules demonstrating about particular would we're work spurred compliance. the I that therapy in more how the imagination improve bridge could of of deal that can think thinking that think improve I say on thinking ENHANZE types is

of translating to of With ENHANZE hopefully over us look new in I'll to so, deals those being very type on with into forward. with for And we're exciting the guidance. go we forward broader to discussed as that, turn a opportunities some it phase and a comment Elaine

Elaine Sun

Thanks Helen.

So strong as we our strong were that million is able respect it the business that we're to in remind of the prospects we $XX raise to the by And with guidance. in well as that guidance growth the by confidence think increasing model and results. quarter reflects end raise to would again of very be try I I second that the range. we we guidance given folks in the guidance year-to-date we pleased -- third lower thoughtful results our our formulate quarter What did also as

can partners Milestones saw period-to-period. orders revenues very certainly based strong from fluctuate as an in noted of product total components, of increase In may comments as terms some in product terms which you fluctuate amalgamation a of sales partners. we that's as safety my the have a of performance couple quarters of can in sort And our last fluctuate of also sales. in well recall period-to-period, of number on can stocking

the and But As those fluctuate. noted, and DARZALEX to can additional continued -- momentum obviously second us quarter. pleased milestone in achieve very commercial allowed see the growth third of two Helen the which we're be strong Faspro, to those

guidance. picture, in in reflected full that And of in potential very recurring revenues the our strong we particular everything are component given So confident in are our and the feel I is know have royalties revenue growth guidance. which a

Matthew Luchini

the taking for you Thank questions. right. All

Operator

Roy Your next Buchanan from JMP with question line Securities. of comes the

is line open. Your

Unidentified Analyst

actually It's guys. Hey, Jason.

a that kind here. couple are just So of questions interconnected

about priorities the into can As you your M&A Is return. talk shareholder capital wrapped you it another for Obviously repurchase comes here. share up repurchase? play program

operating any there any a they efficiencies? is side to we'll you tax opportunities grow efficiencies, are about where but R&D operating -- the there about on one are spend this the another. that's you stack do your work. also efficiencies, both think organization willing flip for And M&A, or are as scenario the about what priority. from the you So, and further to extent thinking And But

Helen Torley

second part to I'll Jason, the company of from we we a I'll study in said start for the being for the a the we're transition clinical we turnover organization of high-risk ask When about Elaine results a the made question example. away were capital card for moving then talk XXXX of the return. R&D with where Yes. waiting

skills not looking And and derisk of we of take our other it largely the platforms so that at where type types looking opportunity M&A We're companies. we're license is somewhat can at. or that

regards development is it risk ENHANZE like clinical to do do smaller go not not high just do. additional is to into business we be that that might platform. the but a so, back knife, the And we want R&D amount And we research with what there a there'll plan or definitely smaller

are because and running if possible. we business, We're the there those as assuring. long sense. a that's on revenue ENHANZE And an that focused very a business always attractive profitably stream. are investments such large we We certain make, as then again see But durable investments support to going make

prudent I'm always from you is but making we sure balance spent that So expect a it's making wisely. growth, a dollar every sure being sure scalp. for are and of future investing

Elaine it capital in. priorities So turn talk are there I'll about return. to you just for to the over

Elaine Sun

Thanks.

we one be it really long is capital commitment and as of noted the year. of what return, emphasize -- early are to in business you per million guidance buyback model, when anticipate fund providing we think and potential our supportive that growth. we both did our would is little do it's We would plans, external value perspective we to $XXX ENHANZE We able confidence return strategy year that, Halozyme. comment, capital additional future that's of efficient a respect and well program. our as as our our provide term part in capital early So, completed I early as or premature year capital because and that growth next really allocation its to With balanced but cycle funding can to a internal is

Unidentified Analyst

Thanks Got it. the taking for questions. Great.

Elaine Sun

Thanks Jason.

Operator

line the Desjardins. with from DiFiore comes Michael question of next Your

open. is line Your

Michael DiFiore

a thanks taking great the question. on for and on Congrats guys. so Hi, much my quarter

be that six me. expected I number from just two on got pre-phase hoping Number was are you one, to one could Just in QX. elaborate slide on the starts more

was any PHESGO, is any realize phase possibility thoughts PHESGO So any there opportunity? trial days. it's of regarding Argenx’s DARZALEX And phase I I recall three Xs. Thank PHESGO? not of there end the dedication, too same compared on in of on top part updates if its wondering also be ago time? the the conversations Separately the subcutaneous launch been of the Is bullous of that these to any Phase going could a mentioned is mind that or before X point And long obviously, uptake updated the at start Alzheimer's into you. to insight year. of And partnering the Alzheimer's still similarly that has on early they pemphigoid incremental days.

Helen Torley

Right.

until Xs of to mentioned in studies. sometime next is this their can say to one of the with that deed we And so talk those So, three-phase announced. Michael, goal the it two, the a year. but in was the it's year be a not about We're first those start them. early position clinical I'll [ph] studies of had at made partners cabatographer with start to them start But the several one out the are of announce cabategrapher likely talk of them, we not other as year quarter those public, have cannot able about we'll

at amyloid-based what believe So still indications studying pemphigoid I the question. are point is you'll I not Alzheimer's, that the is with target And available. they of in one can the that on Bullous I've Argenx’s, to learn regard with current that mentioned we call, are that time. last answer

questions target. Did talk And will studies? address to all this available. But with on be regard so people remains in point to the I time that at it your we excited with

Michael DiFiore

much. Yes. Thanks so

Helen Torley

right. All

J-code. just lot with is of stronger of time start off Frankly, we're we did countries Now the the is it it's such launch U.S. and nice permanent with seeing we seeing all reimbursement some in going continuing got PHESGO, drug adoption the over in -- would growth very to that seen only other launch. period outside rest and predict where markets where the contribution with clear DARZALEX countries got an in early that see get a rollout monoclonal United in PHESGO launch What more and well. and the not a that States. we're but few place trend. particular, needed the continued still in But the Outside antibody that having in the by world it's progress there a U.S. where we're an delighted a in even start. And logistics as and off already the particularly adoption of DARZALEX got to a traditional of get advance do to Europe of expect explosive and time States to explosive broadened in new United we've we're with continued more

will it from but say slower see I'd growth So explosive we in terms countries accounts. more term growth PHESGO over of continued expands story, and as long a of DARZALEX the

Michael DiFiore

Thanks so much.

Helen Torley

Thank you.

Operator

the line Berenberg. Anita with Dushyanth from next of Your comes question

open. Your line is

Anita Dushyanth

DARZALEX XX - those just taking Phase end I do on off Phase to good XXXX a candidates has by thanks for Of sorry of XX Hi, the I'm questions. my of into profile you the any X afternoon. labeling XXXX? Phase a then quite by couple think X have of of know the are come franchise a X like have And any many potential you have Congrats move a you here. spoke will how Do idea and we year. the kind in Helen, in have DARZALEX? about the that broad quarter potentially been these also the that candidates wide now.

Helen Torley

Okay.

a see to regard moment discussion to active study. first Phase estimate with Let the to with current many how be to saying moving X XXXX look very going and the at of are to for by all me in partners X begin Phase actually then XXXX. There's into our

that them more we'll So company likely recently if to start Phase That for ones to of XXXX in forward be would traditional them And more that I say by majority with ones can't be the XXXX but in X. would Phase have started give these be move X number Anita, development. that projection would are that products, decide timeline. the the would be I you an exact my the does the

pattern would that the So see. be generally we

Phase a the getting label. expect majority regard With which the current about, sorry broad X excited would and candidates by So Phase XXXX. we're X -- candid to ones

each think RITUXAN HYCELA and VFD for don't separate to every at said necessarily you for indication. Optivo the I the do study both ODAC and what was, a centric for to need

they confidential. remains to But that question because will FDA always tumor based program solid partner each possibility FDA. while Now studying That questions to for the the agreement of with is indications I one should separate be be our the good get a FDA no that's partners there. with current are have a the their a they say, partners related safety, and each would of designed our broader there there's is indication goes reach clinical set definitely the conversation to that tumors, going on development solid

giving So the But we'll having. will and at the the certainly and depend and wait direction the it data the RITUXAN are that see have FDA conversations on to is partners the the ODAC. path HYCELA

So subcu IVs four forward development part only exciting the what's terms about separate efgartigimod CIDP is very the in as has still indications circumstance, approved bridge subcu it's right But different a in to product. indications because look as And the strong an developed with really potential is of from they obviously integrated to subcu, being don't opportunity. They already have because doing here in a studies a to. not some IV. start like that market are that. mode Efgartigimod argenx

is is a their we're and that of excited embraced really company that super this more moving the into model it example broadly and in so, pipeline talking their we're even earlier a enhance potentially portfolio. more And has about really applying subcu about. to argenx the partners is

Anita Dushyanth

only candidates newly being to be is That the that the I developed mentioned have more are developed developed there being and I be root clarification. one to FCOR very know Is they is [ph] all? sort possibility just as of just the like Great. see especially helpful. at ones other you not more CIDP FC. itself the as for of IV

Helen Torley

a a do partners little data Phase program with Yes. active do a Phase it's But that's generate definitely set and today X study a dose. right generally into partners are when straight just the we're from to they X different Phase from pick X a contemplating need you of But broader development a potential into for seeing a safety. path because is going And conversation of larger you're start the a do partners subcu number right -- start. The opposed Other you slightly then X, very seamless our just certainly that. bit to development Phase if similar partners. SC clinical the as they doing to where

Anita Dushyanth

Thanks Helen. That's helpful. very

Helen Torley

Thanks Anita.

Operator

Geoffrey SVB. comes Your of the question from Porges next line with

Your line open. is

Unidentified Analyst

Hello. Dantargen Two for Geoff. This [ph] please. is us questions for on

First, what second, update And rights Janssen the and the options were on were mentioned besides were which returned any you then were provide any options an expired for whether can exercised signed? targets new associated and you. quarter during additional any you you? there contracts new for to Thank

Helen Torley

Yes.

nominations new by new generally you of announced do mean would I terms exercise announced no. I that being think In and and that options for by when new I'd or you partners nominations. -- say

new the exactly And So, we agreements quarter. we been the by interest And generally partner. in remember we it able news to if my option. isn't recollection no that that. one were did returned to in who the third a are because Again, this has there quarter, to there was just the license may often if There collaboration the quarter. our another Janssen trying announced those. to have I'm partner moving it one won return that's per was contract great forward but partner have in with of option

the flow sense of a we've seen in So quarter. last you hopefully the gives that

Unidentified Analyst

That's much. helpful. very Thank you

Operator

the comes Daniel Your Wolle question from next line of with JPMorgan.

open. line Your is

Daniel Wolle

XXXX? revolve end Phase expect to the points? royalty do PK revenue do look into level Thanks we you endpoints expect into push high Helen pulls a And the you on around Hi. to is for or taking ahead X and At should demonstrate then a the Fye. question. need This Daniel Jessica clinical how programs, we our for you about the benefit affecting small think molecules as as move

Helen Torley

any let Elaine comments talk guidance. But to say much, going advance. I'll doing just not just Yes. say to to terribly about pulls we're and in I'll I'm She's push royalty Well, our able because on ask the XXXX. be afraid, Elaine on revenue?

Elaine Sun

growth the my is be I next at say as there growth which X we'll quarter we our fluctuate and growth say, our offsetting launch noted rituxin drivers the year. DARZALEX downward just third noted the in from drivers clearly products But X and year. in legacy What are And to come components continue notably increasingly more launch when a revenue component PHESGO. strong our this are pressure well more obviously Wave that by guidance the in period Wave our then to notably the provide and big from period Wave evidence as launches, would subcu of revenues of I and notably as PHESGO the of have of product subcu in in those X faced products XXXX. some there's a can herceptin in the early some you X royalties similar are of and sales products earlier royalties comments Wave and of of beginning can our I are DARZALEX and launches we our milestones But guidance of and recurring from increasingly providing to really competition.

Helen Torley

only was from of study myeloma, multiple to efficacy was or past FDA absolutely drug. focus to approved our but show Elaine. rate to no example PHESGO, such for We've efficacy of to some we With response majority in the in endpoint, has Thanks date efficacy we our developed molecules. And did do as is expect form an regard an secondary. the primary see would Daniel, if been there still approvals there bridging endpoints as PK efficacy, a a non-inferiority expectations pretty for already are will the I early. few the we small on say But goal

FDA. It'll is And benefit. the depend discussion overall it's a on risk a so, profile I with drug, the think case-by-case of this the

it's form so of a some of necessarily think would the likely demonstration efficacy, more given. drug. depend It'll of profile be than not And it's not the I but on

Daniel Wolle

Great. Thank you very much.

Operator

Cantor from [Operator next Duncan comes Fitzgerald. question Instructions] Charles with Your

Your open. line is

Charles Duncan

taking Helen regarding Thanks a Hi. Yes. growth royalty A Elaine the co-formulation the of question patents. quick function as continuation of and for follow-up.

You anticipate two the publicly or granted say that are to that been any that years? those had you Do some filed. over say say of next mentioned being public course able the

Helen Torley

partner office Yes. strategy. The part due down to be our the we're the control. did timing thrilled the to says them. it patent is not It'll Obviously, in in partners and that file

you it. also can't because in of give we're I a the product the the but window. for both But to has step on benefit opportunities to you times It'll be of of extend can't see royalties, a this basis. this as the time terms we But a time thrilled duration at push look progress time the product by So of down. give

Charles Duncan

I know are but of whether or not on X identities, can you can't Wave you products. probably them say any disclose

Helen Torley

say Yes. that. I can't

innovation We have say, a and excited But very And all find to that. about relatively a these getting just novelty that small working that strongly with of of terms partners got formulation in moment yet. good feel of of patterns. has cool very not chance us opportunities we're we that very pool we are are to our that hard done

that's core hear. thing think I another to

with very forward partners several to these several active others. While we moved have be continue

on time can be ENHANZE. so of And co-formulation see that novelty when submitted they're you're with going and these more more co-formulated to patterns being over based the found

Charles Duncan

the someone asked target a about question previous a Alzheimer's. to follow-up a on and beta question quick Last Okay.

think First secondarily, is to to enough subcutaneously be of guess all able formulation CNS of alpha-synuclein when have that to two to Parkinson's I absorbed, penetrant, enable enhance to And available about think those I'm if you then wondering do that cards? one that antibody you use for antibodies with have administering disease? able you're for be be

Helen Torley

answer to take I I a goal Yes. will product say these already but question, subcutaneously. we've don't if IV the of molecules your enough is think to tested that's

CNS that. of into about will the you and higher able if don't confident fluid. be ENHANZE We wondering do that kind more are to very know I were concentrations getting

on the that, We are done to because focused really our subcu. and haven't non-inferiority more programs deliver them ability of

there we very and one cannot recall Charles, taken dialogue with a of exactly am and and that I type dose been obviously blanking partner. on subcutaneously. can of a and are lot regard to number by a synuclein, I a there that I has So strong to neurology/psychiatry one targets. out are companies CNS confidence alpha targets I deliver in we if have the have confidence, on With the strong available therapeutic say, take I'm is product

Charles Duncan

Okay. Very follow-up. the thanks taking for good

Helen Torley

Thank you.

Operator

are turn Helen further questions you. call no I this to Dr. the time. will back over There at Torley,

Helen Torley

very very really your and support. well. next you that and forward Clearly you at quarter appreciate at look strong partners of quarter. continued to Thank this exciting the with we team terrific of do quarter everybody. ahead to by as much. a and We forward execution our Look attention Thank continuing fourth speaking us you Halozyme your another to

Operator

concludes this gentlemen, and Ladies today's call. conference

disconnect. You may now

Halozyme Therapeutics (HALO) 3 Nov 212021 Q3 Earnings call transcript