Halozyme Therapeutics (HALO) Morgan Stanley 24th Annual Global Healthcare Conference summary

Market expansion and innovation

• Expansion into China is seen as a significant opportunity, especially in ADC innovation, with recent deals signed in the region.

• AI adoption has accelerated operational efficiency, reducing publication costs by $50,000 each and speeding up manufacturing and business development processes.

• Process mapping using AI has cut weeks off timelines, supporting continuous improvement and training.

• Ongoing focus on innovation and operational effectiveness is expected to drive durable royalty revenues.

Financial performance and guidance

• Achieved record Q2 revenue of $308 million, up 50% year-over-year, driven by strong commercial execution and new product indications.

• Royalty base is highly diversified, with newer launch products growing 80% quarter-on-quarter.

• Long-term guidance to 2028 includes only currently approved products and indications; future launches are not yet factored in.

• Multiple product launches are expected from 2029 to 2032, with 13 products in development and Hypercon clinical studies starting in 2027.

Platform strategy and business development

• ENHANZE is positioned as a compounding platform engine, with new royalty streams expected to offset any future step-downs.

• Five new deals signed year-to-date, with strong interest in subcutaneous delivery across multiple therapeutic areas.

• GSK signed the first ADC deal, and Pfizer is advancing a trispecific antibody using ENHANZE.

• Royalty structures for ADCs and nucleic acids are similar to existing deals, with upfront payments, milestones, and durable royalties of at least 10 years.