Halozyme Therapeutics (HALO) Investor update summary

Strategic Business and Technology Updates

• Expanded to three subcutaneous delivery platforms (ENHANZE, Hypercon, Surf Bio) through acquisitions and new collaborations, with IP protection into the mid-2040s.

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

• ENHANZE now commercialized in 10 globally approved blockbuster products, with continued strong regulatory and commercial momentum.

• Hypercon and Surf Bio technologies enable high-concentration, low-viscosity subcutaneous formulations, supporting at-home and clinic-based delivery.

• Multiple growth drivers identified, including new modalities (nucleic acids, ADCs) and ongoing M&A activity.

Financial Guidance and Performance

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

• 2026 guidance raised: total revenue of $1,710–$1,810 million (23–30% growth), royalty revenue of $1,130–$1,170 million (30–35% growth), adjusted EBITDA $1,125–$1,205 million, and non-GAAP EPS of $7.75–$8.25.

• 2026 royalty revenue is expected to exceed $1 billion, one year ahead of previous projections.

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

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

Strategic Acquisitions and Portfolio Expansion

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

• Acquisitions extend IP protection into the mid-2040s and diversify revenue streams.

• Guidance includes approximately $60 million investment in Hypercon and Surf Bio technologies.

• Both acquisitions unanimously approved with minimal leverage impact and no dilution to 2026+ non-GAAP EPS.