Halozyme Therapeutics (HALO) TD Cowen 46th Annual Health Care Conference summary

Strategic growth and innovation

• Signed three new ENHANZE deals and completed two acquisitions (Elektrofi and Surf Bio) to expand subcutaneous drug delivery capabilities across oncology, IBD, and obesity.

• Acquisitions bring hyperconcentration technologies, enabling higher drug concentrations and smaller injection volumes, supporting trends toward at-home and in-office auto-injector therapies.

• HyperCon technologies have durable IP into the mid-2040s, supporting long-term revenue durability and innovation.

• Focus remains on maximizing value from current platforms while selectively considering further M&A that adds royalties and strong margins.

• Projecting 1–3 new ENHANZE and 1–2 HyperCon partnerships in 2026, with Surf Bio agreements likely in 2027.

Platform performance and revenue outlook

• ENHANZE now has 10 approved products, with recent launches like Ocrevus and Opdivo expected to drive significant market expansion and conversion to sub-Q delivery.

• HyperCon assets are entering clinical development, with 3–5 launches projected by 2035 and potential for $1 billion in royalty revenue.

• Revenue models for new platforms will focus on milestones and royalties, with mid-single-digit royalty rates for exclusive deals.

• VYVGART Hytrulo sub-Q adoption is accelerating, driven by prefilled syringe innovation and new indications, with expectations for sales to more than double in the next 3–5 years.

• Ocrevus sub-Q is expanding the market by $2 billion, with strong adoption and majority of new patients choosing sub-Q; Opdivo sub-Q expected to convert 30–40% of the $10B+ opportunity.

Patent, regulatory, and market dynamics

• EU patent extension for ENHANZE maintains Darzalex royalties through 2029; US patent extension, if granted, would provide upside not included in current guidance.

• CMS/IRA policy changes are expected to have minimal impact, with only about 20% of sales exposed to Medicare and key products largely exempt.

• Increasing FDA approvals of biologics and monoclonal antibodies, including ADCs, align with platform capabilities, supporting future growth.

• Ongoing litigation with Merck over a separate patent portfolio, with a US district court schedule expected in mid-June and a preliminary injunction in Germany.