Halozyme Therapeutics, Inc. Q4 FY2025 earnings call

• 2025 was significant with expansion of portfolio via 2 acquisitions: Elektrofi's Hypercon technology and Surf Bio's hyperconcentration technology. • Partners expanded and advanced ENHANZE subcutaneous new approvals, e.g., DARZALEX FASPRO approved, Johnson & Johnson's RYBREVANT subcutaneous with ENHANZE got regulatory approvals in multiple regions. • Signed 3 new ENHANZE collaboration and licensing agreements, including in obesity and inflammatory bowel disease. • Reported strong financial performance in 2025 with total revenue growth, strong royalty growth, etc. • Chris Wahl discussed potential of ENHANZE with antibody drug conjugates, showing data on improved tolerability and PK parameters. • Hypercon is a growth engine with plans to advance programs into Phase I testing and potential new agreements.

Total revenue grew 38% to $1.4 billion in 2025, with royalty revenue increasing 52% to $868 million. DARZALEX subcutaneous had $483 million in royalty revenues (29% y-o-y growth), PHESGO had $105.6 million (51% y-o-y growth), VYVGART had $157.2 million (444% y-o-y growth). Subcutaneous formulations of OCREVUS, OPDIVO, RYBREVANT and TECENTRIQ with ENHANZE collectively represent an approx $30 billion total IV and subcu opportunity in 2028.

• 2026 total revenue expected to be $1.71 billion to $1.81 billion (22% to 30% y-o-y growth), driven by royalty revenue and product sales from API. • Royalty revenues expected to be $1.13 billion to $1.17 billion (30% to 35% y-o-y growth). • Adjusted EBITDA expected to be between $1.125 billion and $1.205 billion. • Non-GAAP diluted EPS expected to be $7.75 to $8.25. • First quarter royalty revenues expected to be less than fourth quarter 2025 by approx 5% to 10% due to contractual rate resets, and total revenue expected to decrease sequentially from fourth quarter 2025 to first quarter 2026 with milestones weighted in second half of 2026.

Q: Regarding the mechanics of DARZALEX collaboration with J&J, elaborating on potential expansion and what happens after ENHANZE collaboration expiry.

A: Helen Torley said terms of licensing agreement end with J&J in 2032, expect to enter discussions to extend agreement and supply of API, don't expect J&J to get another source of API.

Q: Questions on ADC strategy, regulatory path with ENHANZE and treatment paradigms.

A: Chris Wahl said for regulatory path, traditional approach like PK non-inferiority for converting from IV to subcu; for treatment paradigms, ADCs in combo therapy can reduce infusion center time and more movement to first-line therapy with potential for IV-free regimens.

Q: Update on progress towards clinic with Hypercon products and what to anticipate.

A: Helen Torley said continuing with Hypercon team to support 2 partners in advancing to Phase I clinical testing in 2026, steps include completion of clinical scale-up batches and filing IND packages, and clinical studies may be posted on clinicaltrials.gov.

Q: Questions on Hypercon products, if they are existing ENHANZE products, number of ENHANZE products transitionable to Hypercon, and clinical benefits.

A: Helen Torley said targets are confidential but these are established blockbuster drugs with approved mechanisms of action; see potential for moving treatments to simple injections in doctor's office or home; value proposition is putting power back in patient's hands.

Q: Questions on auto-injector part of business, expectations for new partnerships and reporting sales.

A: Helen Torley said anticipate progress with high-volume auto-injector this year; Nicole LaBrosse said recognize product sales from selling devices similar to API sales, and royalties recognized for licensed products.