HALO - Earnings call transcript Q2 2024 | Halozyme Therapeutics, Inc.

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Operator

Good afternoon. My name is Prilla, and I will be your conference operator today. At this time, I would like to welcome everyone to the Halozyme Second Quarter 2024 Financial and Operating Results Conference Call. [Operator Instructions] Please note, this event is being recorded. Thank you. I'll now turn the call over to Tram Bui, Halozyme's Vice President of Investor Relations and Corporate Communications. ahead. go Please

Tram Bui

Good XXXX operator. welcome our to Thank and afternoon, Operating Quarter Financial Results Second you, and Conference Call.

our Labrosse, the an outlook. On Chief Officer, could Helen on President Officer, will of our would slide Nicole our update website. Leading you In our as market Torley, in outlined the referenced Halozyme's our and our to press also call review section today as call will be issued as to who addition of list results risks I Relations SEC today's Financial after and during close, today's financial Slide statements you Executive that will business; find and presentation will supplementary the we Chief X. Investor a filings uncertainties. provide on refer will full be release making for well forward-looking the be call, a Dr.

both non-GAAP presentation. I measures Dr. call, earnings the turn GAAP Torley. GAAP financial release will in financial financial measures over call the with now comparable Helen reconciled slide and adjusted During are press or discussed. the non-GAAP Certain will our and to be measures

Helen Torley

quarter, projections. and strong robust achieved of and our I'm Slide everyone. Starting afternoon, to report we multiple we have clear support pleased momentum continued key that growth In another Tram, on second the business. you, quarter Thank the a good is execution milestones that X. demonstration strong our across

During further portfolio. the our quarter, added we to and IP strengthened ENHANZE

technology. additional regulatory of areas of the trajectory, growth These and ENHANZE expansion second of And support approval a delivery pipeline. our commercial we In into predictability partner. and new a and product drive and new advancements multiple treatment achievements regulatory new were drug announced of success the ENHANZE and addition, indication mark reinforce the our exciting approval a partner our there for clinical

will year prior royalty our This of of expectations $XXX supports year supporting revenue, year-on-year the our an double-digit a business, XX% increase efficient with progress, XX% second our the expectation second quarter, non-GAAP quarter $XXX result full high-margin year-over-year. to for support XX% $X.XX. diluted to line Annual the drove XX% adjusted royalty growth to consecutive royalty total in of XX%. of earnings growth continue growth the and top royalty to quarter EBITDA per $XXX growth We XX% and XXth this to earnings combined growth share million outpace earnings in delivered XX% XX% grew the non-GAAP growth million, XX% million As XX% our of and growth of growth. per operations to and XX% and for full our year. In to from diluted revenue of share to EBITDA revenue, our of EBITDA

some progress. I'll X, Slide to on our provide and recent now Moving details more

grant, patent start with patent March to recent that XXXX. a Let ENHANZE with we this the for coverage This June, claims product me regard Office. Based our by its were extended new granted Halozyme Europe on success new now licensees. European Patent to most the ENHANZE ENHANZE to In provides IP the is expressly in portfolio. patent X,

X, We similar have a patent scope with will patent in pending States, which to if coverage also the a similar United reissue March extend granted XXXX.

starting the we Our patent impacted raised the positively intellectual and its DARZALEX strong growth X-year amivantamab subcutaneous impact at continue the X, March until maintain directly ability our to rate on and original rate based our has XXXX protect subcutaneous new royalty portfolio and outlook royalty in property to to our June, Europe. profile. In

multiple and States, diluted resulted adjusted now per subcutaneous. is patent. I'll for the in product in and those expanded into X-year in with pending in in growth with an claims the that if rates the We allows to X in oncology. to received royalty to and the an regulatory This, turn, just results increase the of reach in to a reissue our United Importantly, years update additional Europe in look to to receive U.K. CAGR were minutes adding forward XX%, These in revenue revenue a XX% OCREVUS progress patients our development approvals OCREVUS X granted diseases, EU in increase Slide outlook. all autoimmune was earnings Roche this of Starting ENHANZE. delighted co-formulated support to DARZALEX in twice increase review royalty existing in royalty European an in full patent, for XX EBITDA projected this financial ENHANZE regions growth which in our new approvals move new our strength X extended to non-GAAP is announce neurology ENHANZE share for strong XX%. and subcutaneous made treatment which providing similar sclerosis subcutaneous growth quarter, to and robust approval We quarter. year. with approvals. their

medicine subcutaneous will patients, many subcutaneous partner product. access facility, allowing IV eighth patients represents For potentially allow Halozyme's this treatment outside also to treatment patient and important new to closer the allowing infusion OCREVUS home. OCREVUS

second CIDP, approval for approval second and action FDA-approved novel the ENHANZE. VYVGART XX of and in for subcutaneous the with this of VYVGART demyelinating injection. with chronic was received transformational to option Hytrulo, mechanism XX XX of inflammatory second the polyneuropathy, years argenx's The to represents FDA patients VYVGART a CIDP indication weekly treatment offers marks for which subcutaneous treatment treat version or the a first Hytrulo new

second United $XX allowed nivolumab milestone subcutaneous this now Moving the payment recognize million in Squibb product. received quarter Bristol-Myers regulatory to a acceptance the for advancements. This us to filing regulatory States. for in

based Medicines $X in action States their also to Agency subcutaneous date and of potential to on September has was accepted XX by subcutaneous XXXX the subcutaneous subcutaneous looking Roche's quarter, in PDUFA XXXX. approvals in of in December addition, Tecentriq in payment forward European for nivolumab We're September action OCREVUS United submission the dates. In Europe Bristol's nivolumab Halozyme. a milestone the a PDUFA the resulting million

set first myasthenia Hytrulo supports are approval the products, year growth adds for and revenue for generalized this U.S. new which X approvals We XXXX our projections. our in X VYVGART up this to exciting Wave gravis

Another achievement lung receiving PALOMA-X result amivantamab Johnson data of III the treatment. important trial in was demonstrated May. presented Phase compared benefits in Johnson's potential resulted for subcutaneous cancer delivery was amivantamab to the ENHANZE ASCO at IV with significant subcutaneous. in that & PALOMA-X The those the the quarter Notably, patients data for of

was Firstly, to subsequent for and minutes less compared X for of X IV treatments. X the hours hours than treatment treatment to infusion the first time reduced IV

that compelling It patients. and health of with of clear subcutaneous treated a were provide to still from could to IV are results XX% ENHANZE. with serious survival demonstration XX% an subcutaneous the rate months reported the and reactions with improved event XX% was to fivefold discontinuation. And was Secondly, received or Remember infusion-related XX IV subcutaneous it that of are XX% amivantamab. receiving for treatment at technology to in the providers. interruption our the even overall that reactions with there treatment patients alive also the lead intriguing to thirdly, predictability potentially care another benefits These exploratory reduction patients analysis who showed compared can adverse high a formulation an infusion-related

amivantamab patients have strong in and the for in to I subcutaneous Phase opportunity supporting novel United regulatory their submitted sabirnetug, therapeutic this from of this Johnson in Johnson very suffering disease. announced dose Alzheimer's soluble their States to option which be also on disease. study approval for first Following the is that a & that pleased beta challenging for data, convenient oligomers Acumen accessible excited both more amyloid for We're Europe. We targets were and they subcutaneous patient of ENHANZE this have treatment using a

our new streams performance, and X. continued are on Wave Wave to the on from We in provide quarter billion Phesgo. revenue driven and of in launch following remain and by Slide approval be products. I'll X X the confident now performance the target continued additional XXXX. addition achieve products, strong in Wave X X the of to second plus with now $X royalty products our all beginning FASPRO details This DARZALEX will royalty of of our revenue X the momentum Moving

$X.X of $X.X Johnson the by frontline increase gains an Johnson's across growth. there of was the exceed driven of share all quarter billion in ENHANZE & analyst growth growth share growth. According This estimated the excess are Johnson on strong projected be primarily and that XX% an United estimates, outside operational in frontline XXXX. XX% lines the $XX For driving will setting points penetration setting. basis. in continued FASPRO subcutaneous in X.X with growth States, were gains strong United DARZALEX, to States driven sales second by of sales & This market continues year-over-year XX.X% from brand be continued Johnson of billion, to total with DARZALEX the in in points. the billion to in annual to is also and therapy XXXX DARZALEX's With X.X exceed commented

Johnson projected be indications. with is to potential quarter, & by also positive addition, Phase in Johnson on the growth III commenting readouts In new X fueled

strong revenue remains growth XX number to multiple X.X Roche's frontline million Notably, Slide expects Herceptin XX% XX% on the July expanding there XX% momentum, fixed-dose the X to year. combination the ENHANZE of with XXX almost increased Roche and of by billion the increased note Perjeta for pleased of a quarter. first CHF myeloma, XX first conversion which With in CHF are We FDA in of in further on of patients DARZALEX of the of approval X. this countries indications. I'll Perjeta eligible this year. Phesgo now the countries conversion to to with half Perjeta move reach transplant is newly-diagnosed in was Phesgo, opportunity FASPRO months XXXX. substantial launched with Sales and to global

least of products Let me are our sales parent billion of X. $XX X on for Wave company's Slide in approximately expect the With opportunity X region, launches partner candidates, to market products meaningful turn and continue track analysts' products XX X in remain in Wave one and product to XXXX. with X product this The in total XXXX. shown we of projections today now already which remains ENHANZE market major at on to and the year on with throughout Wave our

the in may treat with aspiration to that supports just Hytrulo be for managing announced granted FDA the are experiencing argenx receiving XX,XXX stated to CIDP CIDP the for XX,XXX receptor Gap] symptoms. The XX% a also CIDP today been patients is side-effects. anticipated to in negative CIDP patients that start second XXXX. the is option approved approval highlighted the added the provide disease States. to treatment new that for and indication. the subcutaneous with Let Hytrulo, [Audio of regulatory I some exciting the treated argenx Of was treatment VYVGART for There CIDP across form treatment CIDP indication States. more approval. and and with patients the Hytrulo to Fc the responding United represents first patients ENHANZE. In become for the European than the of a CIDP. patients. filing VYVGART current with only are Hytrulo It the begin ability neonatal paradigm. these, submitted which for only the estimated by CIDP its well are beyond is EMA the VYVGART in treatment blocker United of VYVGART June or promising subcutaneous-only FDA is are a not decision in standard-of-care has their use version for will June, of news of indication a VYVGART has me treatment

the VYVGART coverage of to brand's getting treat gravis. argenx than been initially approximately Based more audience generalized CIDP adoption a very will has to annual gravis, about CIDP global and first supports by its myasthenia and generalized trajectory. of a argenx use, gravis quarter prospect. I'll which and of second it growing VYVGART, XX% generated further XX,XXX the quarter, higher of the regimen, $X XXXX, now net a momentum were strong whom Hytrulo increasing preparing Their focus this playbook is This the on indication. In quarter-over-quarter full focus $XXX VYVGART access than use treatment unmet its the consistent product strong growth brand gMG, they second an its number for supporting for on $XXX,XXX, XX% from commercial to revenue physicians robust this to XX% has payer market. of the patient generalized high the indication myasthenia launch reported of the and patients argenx treatment prescribing All continued of the will launch we're myasthenia Hytrulo of more with earlier blockbuster, place. Similarly, growth. patients neurologists, policies expanding VYVGART in of in than objective In gaining reported place. million having sales switched move the in the the argenx's with in that of the remains on and a and growth year and orals Hytrulo estimated pleased in is of second launch. XX% need. on this and VYVGART. global in is to had both year lines and new for already per the with patients commercial is for estimated gravis on grow launch be in analysts, is billion first myasthenia VYVGART by strategy a

January this in of continued expect the following ease Hytrulo also granting We the for year. of access of J-code

myasthenia up update opportunity increased their expectations. patients X of with VYVGART to they and both expectation myasthenia syringe submitted. The for ENHANZE the VYVGART and XX,XXX expand U.S. convenient their approximately the supporting as ocular including in that reinforce now from continue with grow. is the with goal to is myasthenia X.Xx gravis We patient future to opportunity. Hytrulo for momentum also recently ENHANZE antibody-positive patients, studies introduce growth with recently are highlight the well prefilled expected recently and as was prefilled application The VYVGART continues anti-acetylcholine attractive syringe launch prefilled Hytrulo XX,XXX self-administration. more An disease, biologic another new for is higher thyroid for prefilled syringe hear planning initiated for to driven representing new, excited of to CIDP regulatory by Hytrulo for than argenx the argenx patients at market a also by registrational and opportunity for option evaluating availability also receptor biologics. Argenx approval additional as a the to for the for believe administered to syringe eye gravis generalized delivery indications initial gravis, seronegative

in remained switching an me good XXXX, subcutaneous has generated granted ENHANZE. with year-to-date. of sales They example the Kingdom Britain Tecentriq Let based which European the following now XXXX use Europe to is projected IV, move launch. indications will has commented Roche the September that late We're stable recently date. U.S. highlighted and come Tecentriq already the Roche approved the conversion PDUFA been the and intravenous. that on by already all billion CHF they Great United uptake commented as excited approval. action approval, Tecentriq for approvals following on of Annual XX, from majority X.X achieved in Tecentriq With from subcutaneous patients for IV expect of the XX%

Moving now to OCREVUS subcutaneous ENHANZE. with

patients U.S. September has market EUX relapsing and in Roche progressive earlier, of United subcutaneous June, mentioned the date Europe primary The In XX, XXXX. sclerosis. with continues capture multiple sales cumulative in in multiple received remains I and the of rate for OCREVUS CHF date million to approval other the States, XX% subcutaneous X in global OCREVUS As higher the approximately a OCREVUS medicines. In exposure, X.X to leader patient brand of PDUFA year, in half OCREVUS billion. OCREVUS than action X% a treated grew retention share. patient years a first With to sclerosis XXX,XXX

growth patients to the OCREVUS market care reduce and ENHANZE, will treatment release approval pressures With drive reach receiving burden the subcutaneous presenting being most stand-alone reiterated This in the for its meaningful see an the launch opportunity noted to system. in and European the upcoming recent subcutaneous to patients incremental new and on Europe the uptake sales they're beyond formulation both with U.S. opportunity and that more health opportunity billion Roche IV. countries in that $X they a the conversion strong blockbuster the for with OCREVUS On early earnings recent seeing subcutaneous call, opportunity. already

amivantamab recently to that product launch that commented This approved is PALOMA-X now the in infusion-related opportunity. I administration given place and subcutaneous a time high highlighted growth of product. Bristol-Myers the strong U.S. single XX% expectation XX, date quarter reduce June supporting a Turning XX% Wave quick times non-small key with of updated to nivolumab XXXX on of in IV XX% will least Slide XXth amivantamab strength and FX forward reduced potential with minutes, a second our ENHANZE. in contribute action nivolumab reaction approval represent potential the by frame. grew launches States, sales now for has $X.X indications. I'll multi-billion-dollar for Wave the potential now the the is is cancer, at Subcutaneous XX%, we we to to treatment December to X European BMS's for with to XXXX. expectation excluding Squibb's continued lung and that was subcutaneous of our to Johnson in Opdivo patients IV to has our the They frontline subcutaneous another for could & will unmet injection X potential United and supporting trajectory label XXXX to to the FDA move of submission showing X with as the an significantly or Nivolumab In data. expected utilizing to this cover Amivantamab time pipeline, blockbuster The highlight administration in just the need performance. opportunity Opdivo using in to up that X accepted convert X the project look reduced have track to future ENHANZE. IV approval significant from Johnson billion, this move patients in mid-XXXX. subcutaneous will cell potential subcutaneous to XXXX. which will with

Takeda's of oncology, are products and immune in have neurology, Two X currently development, ENHANZE, areas, and disease XX%, HIV. TAK-XXX a products including currently Phase reflecting with III We immunoglobulin in range therapeutic combination III ENHANZE. subcutaneous also neutralizing to fixed-dose are nivolumab-relatlimab into These continues to progress. II advanced several progress. ago testing months continuing These for NXLS broadly with HIV development, and BMS's studies antibody Phase Phase

to delighted for disease increasingly me flexibility into of move Acumen SC through deal treatment caregivers Let a is progressed of that more goal and the we're the we're of disease, with Alzheimer's for subcutaneous a in development I version which will accessible supporting early about The of and progress. to enhanced hearing improve believes trend Phase new patients, their Acumen I convenient that introduction product. has now sabirnetug a product Alzheimer's option providers. for earlier mentioned testing for patients for provide adherence development

We this continue with happens discuss for and signing terms of Recall, licensing and to ENHANZE. companies to that prior the is agreement. stage the negotiating collaboration

technical discussions and that for ongoing addition, multiple HVAI for last I our companies. evaluations our ENHANZE in quarter mentioned are and In with

moves In process, their They decision-making own each of approval, unique. terms budget have which a company technology is for before, process described different each evaluation and for and the at of have then pace. approval we as

of exact these All project the signing timing to make a factors new for it difficult deal.

We as for track-record As and of commercial delivery, rapid with global success. product history clearly derisked the approvals Act. were strong negotiation gold standard safety highly also timeline pleased ENHANZE regulatory to Reduction price a with for believe an unmatched and recognized a a to subcutaneous is fall a FASPRO ENHANZE the note J&J's Inflation separate recent with comments regard that under DARZALEX they will drug

clinical the it Part B with another the for bring recognition await and patients. for we fully can potential ENHANZE our and this benefit the benefit expectations guidance, As of aligns reinforces

Against demonstrate remains Let commercial market the momentum. testosterone backdrop very in a strong. treatment, of replacement and portfolio positive comment growing continues growth now large to me XYOSTED which opportunity on our

products with to in for see $XXX clear XXXX to proprietary than contribute our continue We EBITDA greater path to meaningfully a million.

in over more the our financial me to hand discuss Nicole call Let to detail. results now

Nicole LaBrosse

you, Thank Helen.

and for our on quarter from plans the support continued track expectations are performance the Second our the strong year full momentum in business. with financial results

once Importantly, in the significant as growth adjusted business growth and revenue. line, diluted strength EBITDA generated continued royalty leverage our earnings again we of reflecting top per share outpaced from the model,

share priorities million X repurchases to $XXX returns completed shareholders with allocation $X.X our over November, our years. via the Slide quarter, announced capital the to bringing on Let last XX. past me billion start the ASR In we total

have included projections our in We at future repurchases not time. share this

repurchase shareholder this to depending However, year evaluate by share on our share other continue us Board $XXX million to drive earlier value, factors. authorized repurchases and program the market to conditions allows

approach We increase through additional cash we will cash, with $XXX We cash strong growth the million result March as capital equivalents June a to a M&A. from is balance a the million sheet and evaluate The securities business balanced continue operations. grow of XX, compared $XXX.X maintain deploy on marketable on XXXX, opportunities XX, generated unlock primarily to XXXX. and of with to

grow. at Our reduce net to leverage of the ratio continues to our and continue leverage end the expect ratio EBITDA as was we X.Xx quarter, net to

to success in approved Europe X royalty The DARZALEX in partially a reduction Turning million year now commercial second Growth grew rate temporary quarter. for the prior royalty offset financial XX% quarter to an to revenues million prior Slide to rate increase Wave $XXX.X Royalty royalty $XXX.X of currently compared in Phesgo the the of full reinstated $XXX in for XX for SC continue growth. results period. by quarter $XXX.X the our million was for year June. with in products, detailed were compared DARZALEX the second X% in Revenue period. million, revenue subcutaneous to the March, drive and

the primarily and the million of compared acceptance in also expenses increase was increased Research and to million share $XX.X quarter $X.XX. diluted to the reductions Phase GAAP Adjusted last third quarter. million year was of quarter quarter earnings prior non-GAAP expenses with period, due in of investments earnings EBITDA demand per planned million collaboration in to Similarly, XX% $XXX.X related $X.XX to This from were and to planned share the expense. shift MAA Bristol's API process. Selling, benefited the our the non-GAAP new administrative period. revenue and $XX.X due from higher-than-anticipated milestone. year I million The to in year. $XX is from and general of the Acumen's diluted development million second $XX.X previously high-yield was commercial earnings X manufacturing $X.XX development quarter, primarily ENHANZE to higher-than-expected The per were $XXX in prior reflecting expected down quarter to share from diluted in due second a in per take the sales, share was of place $X.XX achievement API per diluted compared the to GAAP earnings milestones XXXX. second third marketing

and now the Turning ENHANZE guidance. XXXX previously this half year financial platform. and in between year our our guidance $XXX June issuance XX $X,XXX million upcoming are partner revenues $X.XX. million, reiterating reflect revenues XXXX performance non-GAAP delivery of million the new million year to of milestones, Slide to EBITDA to $X.XX Recall, million of of we first to full our raised we of and full $XXX $XXX guidance European XXXX $XXX royalty and diluted solid our of our drug $XXX patent million, adjusted EPS With for to

As would you following. the models, also like refine I reiterate to your

call full product EU and of pull-forward mix second from XX% sequential to API previously and back Helen. gross XXXX. With fourth X quarter in share in impact reflects quarter turn revenue expected over to full the of revenue in the the repurchase impact diluted margin to quarter. the IP. and a are growth of Non-GAAP of that, expansion is EPS the activity I will third quarter, in by sales the quarter quarter. new XX% Royalties achieved milestones expected year now third be and growth driven the Therefore, to flat expected from second collaboration sales third benefited The to see the

Helen Torley

Nicole. you, Thank

quarter our of the results durable, second execution growth and business high-growth Our strength successful our plan. highlight against model,

on As business achieving of our appreciation well-positioned to are that us line in very by and gives and for clear want our for shown on in strong half the questions. to growth of Halozyme's of globe hard resulted year XX, first for these terrific and I work an close to of around confidence ready we remain excited the the the our to and their financial and are awareness grow X-year to collaborators The capitalize Operator, technology partners our beyond opportunities. this year. call Halozyme future. I team emerging Slide sight continues subcutaneous our exciting open both launches we targets. thanking and and pipeline of strong confident now and

Operator

Butler And from of your question the Instructions] comes Jason Citizens with [Operator line first JMP.

Jason Butler

wondering overview the confidence partnership look is alone seeing you an Congrats can't versus could ENHANZE activities, auto-injector? be once deals of, where again, that predicted, expanded on ENHANZE you new it the quarter. year? partnership but weighted this just, or again, level if on your Helen, And as understand between give and us timing at again, just

Helen Torley

ENHANZE. HVAI what on in of Yes. us which who already Yes, but confidence with ENHANZE additional conversations confident have the really own, its to happening, I to are would and there breadth we're signing Thanks, taken course, are are weighted related we say conversations with HVAI, requires ENHANZE, Jason. obviously, partners conversations that gives deals. also And having. that the is of deals the more

pharmas, established see that do are mix the including of that the an becoming care trend So everybody early of biotech in products such is Large conversations. for a value to and we increasing system. nice range because recognizing and that products and from patients also is also which subcu health a companies development, for like

weighted very So breadth probably ENHANZE, of nice those conversations, to Jason. more

Jason Butler

Great. And then just one Nicole. I think follow-up, for probably

you sales that? And into what line API the of that sight the XQ? quarter-over-quarter flat XQ. What just be were expected than Just in gives guess, higher I drove you'll

Nicole LaBrosse

Yes. Thanks Jason. for that,

cadence, look quarterly can sales, but that So quarter-to-quarter. our API do shift out those lay we to when we try at

do and supply. the have because -- see ample of our to too just did ability we we So that

make expected, So if those a earlier fluctuations. partner originally needs we a little can bit than

We we that we earlier saw. year sight expectations full what is line and the that to did in so still year. shift unchanged, see do have And a of but remains

quarter from So for now quarter. to flattening third the we've quarter second to third accelerated was the the going from leaves growth. expectations quarter, the our which that third have because Previously,

at at we time. we expect and on this time, orders again, from the Now a partners quarter, to our the third just this flattening the really, second that based expect quarter

Operator

Cerena of with line your from Wells And the next Chen question Fargo. comes

Cerena Chen

ask drugs This Mohit all is to Bansal. very seems myostatin especially pathway. something the potential be It partnerships, that's that partner the to behalf if I given technology? like was on using Wanted your about enthusiasm and of seem wondering dose, high Cerena about you could with here

Helen Torley

they'd Yes. are to we we areas for do obesity those hot of approach there, certainly at ENHANZE are who muscle I companies and be obesity, very loss see at to obviously, areas. types products involved we with in, are target to if look look fit can like their areas say interested companies. And that a the those of good

as And fits to that those we with opportunities. reached target have so how we new Cerena, will or initiate discussions out be to we're exactly any companies that's to already there, seeing know that because like will insofar

Operator

comes next line your from And Jessica of the with JPMorgan. Fye question

Jessica Fye

I potential around drugs? with these you When from Wave any discussions PALOMA-X live attrition from impacted if say results can I if about couple. had I'm And those partnerships, strong curious those came talking latest then the live? commentary that on several quarter, were the have ones being how Jason's products new can new very I'm you Roche many undisclosed subcu the are how developed guess, partners, but been companies to the related piggybacking as about potential question. Last popped subcu conversations start? to in ones of you the discussions on stage. maybe still speak approved your slide? sure and you What's Or out quarter. there's of maybe on we hear are tell with at Chugai terms have products for more up, last might partnering, a IV all? us the X if the can are versions of And And as

Helen Torley

Thanks, great. Jess. Yes,

with undisclosed start targets. the Let me

So are. Unfortunately, because the that undisclosed say anything Roche, whether one targets point subcu slide. have on versions absolutely we're any near-term is they are them, plans got indication including X already-approved no us those We've confidential, Wave IV at one targets, you're partners given are right. X Chugai unable those partner what in about disclose products. of to of time to The this

the of targets, that. who their and are in not competitive choose they're we perhaps find partners by abide space have disclose obviously generally, So to just that feeling preference, we to a or because

can't more talk when discussion, well -- So we that the we companies continuing are in those terms discussions Jess. but mentioned, stage, at are in regard moment. With as additional technical obviously, the to we terms we're anything as we the no, can, to evaluation companies I say as with excited about

at each company its is So moving own pace.

would be I love an to between more about. terms there's CLA initiating signing I the discussion what place really While happening, to not exactly the able granularity that can is about give and talk intermediate

of the does we but a it make like it that when announce most all deal, the make do seem up-to-date so sure sudden, giving appears it we're you to we want And information.

you'll And so actually about it hear the are CLAs signed. when

that. and Jess, had some a absorbed are interest is These concept it idea which are nucleic drug where it's trafficking, to of more But hit the relates everybody data it obviously, subcu as result is higher a time. as to an in patients more lymph through are immune that was up delivery dramatically a the in that working who infusion-related For here. with But in in exploratory and time, lot to this that interest. the I perhaps survival in is about PALOMA-X, production part addition and nodes. Certainly, an the subcutaneously exciting overall obviously, is conversations aware increased an was about interest. also delivered a certainly a have about and it to has becoming certainly, example, as can an were there's companies happening reactions data higher to the that results, as of, shorter expected people end at regard -- to acids, still say mRNA aware It treatment reduction arm. Two such ENHANZE areas in generated being the because margins. higher created of a was theories exposure, for this of potential One there's overall improved early the interesting that the attracting was circulate that was able fivefold That's be over vaccines, due people all was exposure. signal non-inferiority to there was subcu while with which

Operator

ISI. Michael from line with And your the question comes DiFiore next of Evercore

Michael DiFiore

uncertainty then discussions. you of those the I expect any true-up for election that drill since kind partnership amount were XX EU just -- were influencing -- increased unique -- in has think we prior solid companies? And quarter. Two housekeeping that my in extension you know the or on of and -- discussions. way the of down said for of Congrats follow-up low interest. on how in of potential XQ Helen, Could Has that DARZALEX me. companies see being incremental Again, for EU in is XQ, inbound had, to like, the And I patent? to if Curious the in looming royalties the partnership and a rate a in I cuts XX think, question. partnership back kind mix that the

Helen Torley

uncertainty, the and and having, any All really the say I Nicole Mike. conversations right. of I'll one. then take up second rate first the in take aren't one the issue cuts things can election we're of would coming that

certainly really So is talking a say companies. the people we I that for in the think can't focus with I are

We in around discussion companies. XX are with continuing

And healthy attribute outreach but uncertainty pace like before I coming any nothing gave difference that to do kind we're I so and pipeline in other out and inbounds. Remember, say say overall it's have companies metric than from or election active conversations at that our a that trend get seen all constantly still we reaching more we incoming, I of could cuts. to having anything probably to certainly, we're of and I'd haven't price and

governance, gotten reviews really over think, of have us, about, it cycle the just is in seeing, that the internal to that part budget I years perhaps companies, the as used of we their for heard as takes part you're talk time. perhaps us it you've

a you back deal we've a historically, signed about average. If look year on

the And so gives the very the with we're the deals. in we're with companies us all remain conversations patiently working very it. confidence of additional new that excited used that breadth and We're process talking by and to through

Nicole LaBrosse

reinstated. royalties, And, the we're was that reduction related period regards from full the rate the in a What was and to temporary now royalty the royalties second That quarter to in rate has Mike, related XX%. later true-up our saw March to temporary not second expecting stepped the year. in in down to quarter the been that because the Janssen June. a to you product to was see But

we year, So the will quarters in expect expecting of coming of see to see to second not quarter. but true-ups the any royalty the out growth remaining

Operator

of question line the Wainwright. And comes your H.C. next Kapoor with Mitchell from

Mitchell Kapoor

it how items XXXX categories, make given you're one if updated wondering any in revenue on but of thoughts could composition any you XXXX about the comments the since was pace The seeing potentially. in reiterated, the line have is and the first what was revenue guidance I of look you can if

Helen Torley

to that turn I'll right. All Nicole.

Nicole LaBrosse

Yes.

So just since update more did guidance, you our us updated to see we specifically related royalties.

expected the change and are to we the royalties exceed But have prior stream. fourth do not rest in expectations so our substantial ramp have and royalty a our And of third don't and to higher quarter. changes

consistent we of and so out our in So out reiterated guidance put that is we put largely mix our guidance with June. revenue the composition our tracking guidance, to the

Mitchell Kapoor

wondering earlier shift level request any demand to I we're product sales, And might later. future. seeing product And have if we're that be on read mentioning that you could now Great. were through on the how we sometimes seeing, that was if then might the and of seeing a than that the that bearing partner that

Nicole LaBrosse

full read-through end, close just quarter-to-quarter, to a we don't especially read-through orders, projections. that but saw expecting when we can time, to and this it's quarter aren't shift have At just happen really have our they on these it because impact we really year don't they and

Helen Torley

based are add Mitch, of the that safety company. inside have patterns that amounts want to They stock found we have buying they change hold. And just that on can just going companies Yes. their the I'd different and various things

so And in demand immediately that the not a it for found changes because just to good of have we're we market. see in is demand going the API not correlate for all use

for of is Some safety it stock.

Operator

the TD line next question your comes Smith with And Cowen. from Brendan of

Brendan Smith

in CIDP? a at-home will We've there but might just Congrats I they're and quick administration by health OCREVUS use provider. on and point? flexibility on the about MMN, on will still assuming and be have then empasiprubart, another been many the indications do for wondering you this follow-up kind thinking empasiprubart. you expectations they've OCREVUS a it administration? DM, at actually then clinic on have We announced them from visits how sense that wondering X that Or of a ENHANZE Is quarter. just your one And argenx's any subcu? just know are of a require now also care the DGF using good to subcu

Helen Torley

Brendan, And initial be health to X -- patients for with actually point just in think physician's administered that subcu done, time it think office. very office. was point out, injection, XX-minute With in the study clinical the I and months, done in be of the to practitioner good seeing I'll to quite original for going doctors -- is A a every simple that's it's anyway. the but their been likely that care because OCREVUS, to administered, the Yes. the regard based are date, labels on I setting

to going anyway, there'll and on doctor home And patient's be because the to to drive regard the is so that to information have for that provided any additional a Roche's want I the to with don't a argenx has patient time see any nice part know it's in empasiprubart, regard check-in. With publicly. not it

position at this So we're a anything not in provide to time.

Operator

line question comes Leerink your of Partners. next And from David with Risinger the

Jiexian Zhuang

Congrats Jason strong It's Two quarter. on for David. me, for questions a please.

to And you this ENHANZE third and fourth following are full And second think near-term question we First strong blockbuster is, performance, guidance? year one how are modeling the maintenance what deals of quarter year sequential XQ for is new still the sign quarter major expecting drugs? the should for considerations? about future

Helen Torley

the year just just first full again, talk quarters. flavor one next ask guidance the of a Yes. Nicole maybe, and the and to of X take I'll maintenance about the

Nicole LaBrosse

Yes, to. happy

guidance. quarter with year is second full our performance our So tracking

expected at supports mentioned. revenue, we And happened as the fourth to quarter guidance. in so as year the we API sales our third we mentioned when also at milestones flat I be quarter. pull that also those originally I'd third the look some in in the And And expected we expect is quarter second when quarter, for saw we third collaboration no It in tracking for then were and full change look cadence and particular, quarter, do the the to view.

really so or collaboration to flat of when milestones we look at expectation see the in I expect sequential growth reflecting that second only will being the second fourth third quarter. was that royalty half streams, growth reflecting at in but the third our driving royalty back rate full June that be revenue not And the our to is know that the a of and reinstated DARZALEX. rate quarter quarter our That's for year quarter. But underlying and full we the also growth quarter the also in brands royalties, the in in

Helen Torley

hard timing regard of the by progress, discussions a of deal talked with it's about, each be in and discussions, right. different, including All governance, we deal much are very company process. to their also terms we but discussions is technical range companies. And exact a their budgeting very as certainly predicting to the and is with excited influenced And other because

the are a of in for on breadth dosing of discussions, They deals. and a we either confident year. differentiation important be a as extended an really absolutely that's happen things this it very product worked There's conversion right of based could for And doing say this new pleased be range. within the will all the or the established people subcu could in much of will just us. to it something competitive I stage systems. very Obviously, through But but IV this established possibly very is for both. It working to and at commercialized, from is also it we're being -- can the we're now their start, one are product going But very range well interest patients, offering so question your what place to companies blockbuster that the we're certainly so product. seeing on be that's have already subcu that's subcu or

these we excited soon that possible. And work terms just discussions obviously, we we're as and would through in signing So of past to CLA. all the system is move to position as the the of are have a entirely into updates to provide

Operator

Your Purohit the Morgan next comes question line Vikram Stanley. with of from

Vikram Purohit

one and business capital allocation We development. had on

And willing be business how leverage into fit you the So stage would do does for X.Xx at And to thinking? BD? profile of could a for current M&A you maturity? potential that be think what flex your company's of factor good much Halozyme how ratio potential

Helen Torley

the on part All the comment I'll first question ask and final then Nicole I'll right. take there the to on leverage.

that a to find very right to value the great and we use So our way we we continue be M&A, believe do and capital can if return looking, great that of actively is our shareholders. to a

given and approach, profile, with licensing disciplined are financial model, our our our high great -- to there. be also the current at drug continue are We business that but we ideally a margins fit models delivery looking such exist businesses our that as in

got and to well. we're stream be a the with Importantly, revenues fit that meaningful revenue the company financial things as durable have profile of a for looking

model. needs great you license in, looking for our businesses example, as at are for where them drug biotech So can is there Vikram, imagine, fit create for -- our are to new are another are there technologies also that and that pharma delivery, to and and an businesses looking other business for established we These already but skills drugs.

there looking active very we're so And as well.

the demonstrated where as it. the We've meaningful see patient. be grow durable our asset revenue to a strong patience. potential a with will got result we we We of to that's de-risked ever, revenue right contribution have to need and something As

you to come leverage? but active very want do to in talk more that, hopefully, about So there. Nicole,

Nicole LaBrosse

look When what and and as Yes. described, think pro leverage about our current Helen at is forma delevering is profile. what I really I the

the go to how So now at acquisition, less we about for be important the to from when we perspective. X.Xx. I Xx. and example mentioned, Antares factor we're you would were And really up able think I'll give would you as that a levered delever than high leverage I a that

to have of is be focused profile of So we delevering that on. where line sight really type what I'd

Operator

Joe, mute. And comes the on of Sandler. line question Catanzaro you Piper next your with be Joe And from might

Joseph Catanzaro

Hey.

you Can me now? hear Sorry.

Helen Torley

can. Yes, we

Joseph Catanzaro

Great.

into just that. FASPRO about on transplant-eligible one label a quick frontline expansion had Sorry myeloma. I recent the

think maintenance PERSEUS a component, the study the but not did I include does include maintenance. label

exclusion and longer-term considering your the outlook be trajectory have Any could wondering impact maintenance think longer-term whether there for franchise DARZALEX growth if So total usage? assumptions, or would the of maintenance sort help of you its were the on any in you appreciated. some

Helen Torley

not not looking specific label-by-label one Joe, and a at point, when we're we are good a -- DARZALEX, that basis. It's we on Yes. forecasting are

a what look is analyst for think is at take we the what I patients. consensus do we

sales. the And so analyst consensus for -- is

this in quarter, that so to to all share see gains across And great line. close front really obviously look that of share line, have the moment. gains they're front we Last in quarter, making the the indications the XX% at they

I uses at as and trajectory that's with So already look this established have that a on all in of incremental frontline indications they the place today.

Joseph Catanzaro

Great. actually Okay. That's really helpful.

Operator

end And that our call. we Thank Ladies you. the concludes Q&A for and all joining. of have reached gentlemen, you today's conference Thank session.

now may You disconnect.

Halozyme Therapeutics (HALO) 6 Aug 242024 Q2 Earnings call transcript