Halozyme Therapeutics (HALO) investor relations material

Strategic Business Developments and Acquisitions

• Acquired Elektrofi (Hypercon) and Surf Bio, expanding to three subcutaneous delivery technologies with IP protection into the mid-2040s.

• Surf Bio acquired for $300M upfront and up to $100M in milestones; Elektrofi for $750M upfront and up to $150M in milestones, both funded from existing cash.

• Signed three new ENHANZE collaboration agreements, broadening therapeutic areas to include obesity and inflammatory bowel disease.

• Ongoing M&A strategy targets further drug delivery technology acquisitions and revenue growth opportunities.

Financial Performance and Guidance

• 2025 total revenue estimated at $1,385–$1,400 million, up 36–38% year-over-year, with royalty revenue projected at $865–$870 million, up 51–52%.

• 2026 guidance raised: total revenue projected at $1,710–$1,810 million, royalty revenue at $1,130–$1,170 million, adjusted EBITDA $1,125–$1,205 million, and non-GAAP EPS $7.75–$8.25.

• 2028 total revenue projected to exceed $2 billion, with royalty revenue at $1.46–$1.51 billion and non-GAAP EPS of $10.50–$11.10.

• 2024–2028 CAGR projected at 19–21% for total revenue and 26–28% for royalties.

• Gross margin expected to exceed 80%, free cash flow over 70% of EBITDA, and operating margin above 60% for 2026–2028.

Growth Drivers and Portfolio Expansion

• ENHANZE remains a robust contributor, with 10 globally approved products and 13 in development by 2026.

• Portfolio to nearly double from 19 to 36 commercial and development products by 2028.

• Hypercon projected to deliver ~$1 billion in royalty revenues by the mid-2030s, with two Phase I studies expected by end of 2026.

• 1–3 new licensing agreements projected annually, expanding into nucleic acids and ADCs.

• Additional M&A and new licensing agreements expected to further extend revenue streams into the 2040s.