Halozyme Therapeutics (HALO) investor relations material

Deal rationale and strategic fit

• Acquisition targets breakthrough hyperconcentration technology (Hypercon™), enabling biologic concentrations 4-5X higher than current standards for at-home and in-office drug delivery across multiple therapeutic areas.

• Expands and complements the existing drug delivery portfolio, creating new commercial opportunities and enhancing patient convenience and accessibility.

• Aligns with the trend toward patient-centric, at-home administration of biologics, broadening auto-injector options and supporting secular market shifts.

• Brings a differentiated, patent-protected platform with a lean, capital-efficient business model and established partnerships.

• Extends partnership and revenue models across more biopharma partners and modalities, supporting long-term growth.

Financial terms and conditions

• The transaction is an all-cash deal with a $750 million upfront payment and up to $150 million in milestone payments tied to the first three product approvals.

• Three $50 million milestone payments are linked to regulatory approvals of Hypercon™ products.

• Funded through existing cash and a credit facility, with leverage expected to rise to approximately 2x net debt to EBITDA at closing.

• The deal is expected to be less than 5% dilutive to (Non-GAAP) diluted EPS over the medium term, excluding milestone offsets.

• Incremental operating expenses for 2026 are projected at $55 million.

Synergies and expected cost savings

• The combined business leverages a scalable licensing and royalty-based partnership model, generating recurring revenues and minimizing capital intensity.

• Accelerates commercialization of Hypercon™ by leveraging proven expertise in scaling subcutaneous drug delivery technologies.

• No clinical or commercial costs for partners, supporting a highly efficient, leverageable model.

• Focuses resources on innovation and partner success, avoiding high clinical development and manufacturing costs.

• Potential for significant milestone and royalty revenues through the expanded model.