Halozyme Therapeutics (HALO) Investor Update summary

Patent and Royalty Status Update

• Projected royalties for Darzalex subcutaneous and Darzalex Faspro remain secure through 2032, unaffected by recent European patent opposition outcomes and U.S. proceedings.

• European Patent Office revoked a Janssen co-formulation patent for DARZALEX SC, but the decision does not affect 2024 royalty revenue projections or expectations to exceed $1 billion in royalty revenues by 2027.

• Two granted Janssen European patents have been revoked by the opposition division, but both remain valid during appeal, with the appeal scheduled for May 6, 2025.

• U.S. royalties are unaffected due to different patent laws, a one-year grace period for public disclosures, and separate granted patents.

• European royalty reduction occurs in March 2029 for 37 countries, and in March 2024 for others.

Patent Portfolio and Collaboration Updates

• Multiple granted and pending collaboration patents in Europe and the U.S. support ongoing royalty streams, covering product formulations, dosing, and use for disease treatment.

• No negative implications are expected for other licensees seeking future collaboration patents, as patentability standards remain unchanged and based on unique, non-obvious results.

• Revocation in Europe was based on Janssen's early public disclosure of a clinical trial protocol, not on a change in patentability standards.

• Royalty terms are based on valid, granted collaboration patents in both the U.S. and Europe.

• If Janssen appeals, the revoked patents remain in force until a final decision.

MDASE Patent Portfolio and New Opportunities

• MDASE patents cover modified human hyaluronidases for subcutaneous drug and biologic delivery, distinct from ENHANZE, and are not included in existing ENHANZE licenses.

• The MDASE portfolio includes 99 patents or pending applications worldwide, with exclusivity through 2032 outside the U.S. and 2034 in the U.S.

• MDASE licenses will be non-exclusive, without product co-development, alliance management, or API supply, and follow a milestone and royalty structure similar to ENHANZE.

• MDASE is positioned for companies unable or unwilling to license ENHANZE, expanding commercial opportunities without impacting the core ENHANZE business.

• High-volume auto-injector technology may be offered to MDASE licensees as a complementary solution.