Halozyme Therapeutics, Inc. Wells Fargo 21st Annual Healthcare Conference

It is great. Very excited to be here in Boston.

That is great. Well, for those less familiar with Halozyme, we focus on subcutaneous drug delivery, and we have four subcutaneous delivery technologies now. The first and the largest to date is ENHANZE, and we also have an auto-injector platform as well. At the end of last year, we acquired two hyperconcentration technologies, HyperCon and Surf Bio. What we are hoping to do is to create each of these into a compounding platform engine for Halozyme. As Mohit says, we are just coming off a record quarter in the second quarter. Revenues of $481 million, up 48%. Royalties, importantly, up 50% to over $300 million. The drivers of that to date is ENHANZE. We have got two key drivers within our ENHANZE platform, are products that launched in 2020 and 2023. That is DARZALEX subcutaneous and VYVGART HYTRULO. Even although those launched several years ago, they are showing phenomenal growth.

They're terrific products, where the companies have got new indications, they're expanding to new prescribers, and we're getting the benefit of longer duration of therapy in some of these indications as well. That is going to be a continued growth driver for Halozyme. But what we reported in the second quarter, Mohit, and I think what got people very excited, was that the next set of launches, which occurred more recently, which includes Ocrevus subcutaneous plus OPDIVO and RYBREVANT subcutaneous, those grew 80% sequentially. And those are becoming more important royalty revenue drivers for Halozyme, driving that record performance. And we're not done there. Talking about where we're going, we have 13 products that we project will be in the clinic with ENHANZE by the end of this year. We will have two HyperCon products in clinical testing at the beginning of next year.

As Mohit mentioned, this year we've signed five new deals to date, three ENHANZE, two with HyperCon, which are expanding us into new areas, including ADCs and nucleic acids. That is what is leading to this continuous engine of new products in the clinic that will be our future royalty revenue streams layering on top of the two drivers I already talked about. So, an incredibly exciting time, and our future will be multiple ones of these compounding platform engines just driving durable long-term royalty revenue growth for Halozyme.

No, Mohit, we did five this year, but we actually signed three ENHANZE deals in December as well.

Right. It has been an amazing month, and it is a record performance in the history of Halozyme.

Right. What I think has happened, Mohit, is that this is the time for subQ therapy.

There is a recognition that we find broadly across pharma and biotech that to be competitive, to deliver against the patient expectations, you need to have subQ delivery, ideally in the patient's home, ideally in some indications in a small volume auto-injector. When we look at the types of products that are in development to date, there is a high concentration of immunology and inflammation, nephrology, GI, neurology. These are disease areas where the goal of pharma companies, but also of the patients, is I want to be able to treat myself at home. I do not want to have to visit the doctor's office. I do not want to sit in an infusion suite. We happen to be at a marvelous time where subQ therapy is the expectation, and Halozyme has the leading technologies. With ENHANZE, we have the best proven, best validated subQ technology.

Our HyperCon and Surf Bio technologies are delivering against this desire to have small volume in an auto-injector at home. That is the value proposition, and that is what we have seen, just a total change in, before, Halozyme having to go out and talk to people about subQ delivery, "Have you considered it?" To companies calling us and saying, "We want ENHANZE because we want to do X. We want HyperCon because we want to do X." It is this recognition that subQ delivery is frankly a commercial mandate in these additional disease areas. There is still an interest in oncology, but what we have done is expand into multiple different areas and multiple different modalities. We are not just working with antibodies today. We are beginning to work with ADCs. We are working with nucleic acids.

All of this is beginning to expand our TAM, and that's all what's driving this flurry of deals, and it's going to continue. We've said we're going to sign at least one additional deal this year.