Q2 2020 Halozyme Therapeutics Inc Earnings Call
[music].
Good afternoon, everyone I wouldn't like to turn the conference ever to Al Kildani, Vice President of Investor Relations.
Al Khaldani: And everyone, I would now like to turn the conference over to Al Khaldani, Vice President of Investor Relations and Corporate Communications for Pudic. Please go ahead with our second quarter 2020 financial results conference call. In addition to our press release issued today after the close, you can find a supplementary slide presentation that will be referenced on today's call in the investor relations section of our website. Leading the call today will be Dr. Helen Torley, Halozyme's President and Chief Executive Officer. Officer, who will provide an update on our business, and Elaine Sun, our Chief Financial Officer, who will review our financial results for the second quarter of 2020. During the call, we will be making forward-looking statements. I refer you to our SEC filings for a full listing of the risks and uncertainties. I'll now turn the call over to Helen.
And corporate Communications Therapeutics Inter company. Please go ahead.
For a second quarter 2020 financial results Conference call. In addition to our press release issued today. After the close you can find a supplementary slide presentation. There will be reference on today's call in the Investor Relations section of our website.
Leading the call today will be Dr., Helen Torley, Halozymes, President and Chief Executive.
Officer, who will provide an update on our business and Elaine fun, Our Chief Financial Officer, who will review our financial results for the second quarter 2020.
During the call, we'll be making forward looking statements I refer you to our SEC filings for a full listing of the risks and uncertainties I'll now turn the call over to Helen.
Thank you out I'm delighted to report update on the recent exciting developments at Halozyme that are positioning the company for sustained growth in revenue.
Helen I. Torley: Thank you all. I'm delighted to report on the recent exciting developments at Halozyme that are positioning the company for sustained growth and revenue. Transcription by https://otter.ai Now, before we get to some of these exciting second quarter developments, I'd like to provide a brief update on our business. www.helentorley.com.au Importantly, our suppliers also continue to operate without interruptions related to COVID-19. On our first quarter call, we indicated that, based on partner feedback, we anticipated that some partner development program starts would be delayed by one to two quarter Any potential for impact on FDA and EMA review times was unknown at that time.
In coming years [laughter] these developments, including three major market regulatory approvals for blockbuster oncology drugs utilizing our enhanced drug delivery technology, and our first quarter of what we expect to be sustained profitability.
Going forward.
Before we get to some of these exciting second quarter developments I'd like to provide a brief upon our business.
Adam.
It's simply what the majority of our employees working from home we expect.
Feature.
Importantly, our suppliers also continue to operate the interruptions related to cope with 19.
On a first quarter call, we indicated that based on partner feedback we anticipate that at some partner development program starts would be delayed by one to two quarters and that some trial enrollment had been impacted.
[laughter] any potential for impact on F D and E N. A review times was unknown at that time.
I'm very pleased to update today that progress has been made a multiple programs do you.
Helen I. Torley: I'm very pleased to update today that progress has been made on multiple programs. Based on the latest partner feedback provided just in the last few weeks, we project a total of nine new clinical trial starts in 2020, with one additional new trial start date still to come.
The latest partner feedback provided just in the last few weeks, we project a total of nine new clinical trial start in Twentytwenty with one additional new trial start dates.
Still uncertain.
From a regulatory standpoint, we we're obviously pleased by the speed with which the ft. He was able to approve Johnson's darzalex fast broke and also roche's Fas go.
Helen I. Torley: From a regulatory standpoint, we were obviously pleased by the speed with which the FDA was able to approve Janssen-Darzilek's Faspro and also Roche's Fezgo. The FESCO approval was 4 months ahead of the October PDUFA date, and the FDA cited that this was due to a desire to expedite oncology product development. In Europe, the EMA timeline for DARS-Like VEST-C approval also tracked ahead of expectations.
The phase go approval was four months ahead of the October PDUFA date, and the Ft excited that this was due to a desire to expedite oncology product development.
In Europe, the he may timeline for doors like best CE approval also tracked ahead of expectations.
Now these current expectations for Twentytwenty reflect the latest feedback we've received from our partners about their plans further enhanced based products in twentytwenty.
Helen I. Torley: These current expectations for 2020 reflect the latest feedback we've received from our partners about their plans for their enhanced-based products in 2020. Given the inherent uncertainty of the COVID-19 pandemic, our partners may update or change their plans or outlook in the future. We're monitoring this closely and would provide updates if there were to be any changes impacting the business. Now let me turn to the great news for the quarter, beginning with slide three.
Given the inherent uncertainty of the coven 19 pandemic our partners May update our teams are plans our outlook in the future. We're monitoring this closely it would provide updates if the work to be any changes impacting the business.
Now, let me turn to the Great news on the corridor beginning with slide three.
Helen I. Torley: Our partners received two FDA approvals and one EMA approval during the second quarter, bringing the total number of FDA-approved drugs utilizing our enhanced technology to five. Most recently, Roche and Einstein received FDA approval for Fezgo, a fixed-dose combination of two Roche drugs that are the backbone of treatment for HER2-positive breast cancer patients, Progetta and Herceptin. In terms of demonstrating the power of our enhanced technology and its ability to provide competitive differentiation, Phezgo is the first combination of two monoclonal antibodies in a single subcutaneous injection utilizing our enhanced technology. This six-dose combination can now be administered in approximately eight minutes for the initial loading dose and approximately five minutes for each subsequent dose. This compares to approximately 2.5 hours for the initial infusion loading dose because of the sequential injection of Progeta and Benherceptin IV and between one to two and a half hours for the subsequent infusions of these two medicines.
Apartments received two ft approvals on one any approval during the second quarter, bringing the total number of the ft approved drugs utilizing our enhanced technology to five.
Most recently Roshe mines to recede ft approval for FESCO, a fixed dose combination of to Roche drugs that are the backbone of treatment for her two positive breast cancer patients for Jetta and herceptin.
In terms of demonstrating the power of our enhanced technology and its ability to provide competitive differentiation. Vasco is the first combination of two monoclonal antibodies in a single subcutaneous injection utilizing the ENHANZE technology.
This fixed dose combination can now be administered in approximately eight minutes for the initial loading dose and approximately five minutes for each subsequent dose.
This compares to approximately 2.5 hours for the initial infusion loading dose because of the sequential injection of Perjeta, Ben Herceptin, Ivy and between one to two and a half hours for the subsequent infusions all of these two medicines.
The ft granted approval of FESCO in Neoadjuvant advent and the Mets static treatment settings face in the Federica study, which was an open label Multicenter randomized study conducted in 500 patients with her to Overexpressing early breast cancer.
Helen I. Torley: The FDA granted approval of Fasco in neoadjuvant, adjuvant, and metastatic treatment settings based on the Federico study, which was an open-label, multicenter, randomized study conducted in 500 patients with HER2 overexpressing early breast cancer. This once again supports FDA comments made at the Rituxan Hyphala ODEC that a separate controlled clinical study may not be needed for each and every indication. In addition to the FDA acting swiftly on this application, the agency highlighted the potential for this product to be administered in the home by healthcare professionals, which adds an important outpatient option for patients. Now this is especially true in the current circumstances, where reports suggest some patients do not wish to visit hospitals to receive their treatments due to COVID-19.
This once again support safety comments made at the retail some high selling ODAC that a separate controlled clinical study may not be needed for each and every indication.
In addition to they have the acting swiftly on this application the agency highlighted the potential for this product to be administered in the home by health care professionals, which adds an important outpatient option for patients.
Now this is a especially true in the current circumstances report suggests some patients do not wish to visit hospitals to receive their treatment due to covert 19.
Highlighting further the potential appeal to patients Roche also conducted a phase two titles same francesca, which evaluated patient preferences and find that 85% to patients preferred the subcutaneous fixed dose combination of burgette to intercept and over the Ivy.
Helen I. Torley: Highlighting further the potential appeal to patients, Roche also conducted a phase two trial titled Dame Francesca, which evaluated patient preferences and found that 85% of patients preferred the subcutaneous fixed dose combination of Birgetta and Herceptin over the IV. Looking ahead, Roche completed regulatory submissions for the fixed-dose combination of Progetta and Nerceptin in Europe, and a decision by the EMA is expected in 2021, assuming a standard In terms of understanding the...
Looking ahead Roche completed regulatory submissions for the fixed dose combination of projected intercept and in Europe and a decision by the M&A is expected in Twentytwenty, one assuming a standard review time.
In terms of understanding that.
The potential opportunity all says go for Halozyme when needs to consider the projected sales plus the associated herceptin filled as far as go can replace the individual use of both of these drugs in the breast cancer indications.
Helen I. Torley: Transcription by https://otter.ai, Analyst Consensus projects global sales of Progetta of $4.1 billion in 2020, growing to $5.6 billion in 2024. Breaking this down some more, in the US, Projeta alone made $1.6 billion in sales in 2019. One would then add the associated Herceptin cells in breast cancer to understand the total opportunity. For Europe, where a regulatory decision is expected in 2021, European sales of Progetta in 2019 represented about 70% of the sales in the US. International sales made up the remainder of the approximately $3.8 billion in total sales in 2019, with international sales representing about 60% of U.S. sales.
[noise] analyst consensus project global sales are projected to of $4.1 billion and twentytwenty growing to $5.6 billion in Twentytwenty for.
[laughter] breaking this down some more in the U.S. project alone was $1.6 billion in sales in 2019.
One would then add the associated herceptin sales in breast cancer to understand the total opportunity.
[laughter] for Europe, where a regulatory decision is expected in Twentytwenty one European sales are projected in 2019 represented about 70% of the sales of the U.S.
International sales made up the remainder of the approximately $3.8 billion and total sales in 2019 with international representing about 60% of U.S. sales.
Let me move now to slide four and Darzalex S C.
Helen I. Torley: Let me move now to slide 4 and Darzalex SC. As discussed on our last call, Janssen received FDA approval for Darosel-X Faspro on May 1, with a broad label covering five of the seven indications for which the IV form is currently approved. We estimate that this label allows Darzalex Faspro, utilizing enhanced, to address the majority of multiple myeloma patients, based on our assessment of animal assessments for how Darzalex IV is used today. One of the indications for which data were awaited was for use in combination with pomalidomide and dexamethasone. Just days ago, on July 31st, Jemson's development partner, GenMap, announced positive top-line results from the Phase III Apollo study, which was evaluating subcutaneous daratumumab in combination with pomalidomide and dexamethasone versus pomalidomide and dexamethasone alone in patients with relapsed or refractory multiple myeloma. The study met the primary endpoint of improving progression-free survival, and the safety profile of Daros Tumamab SC in combination with pomalidomide indexomethazone was reported to be consistent with the safety profile for each therapy separately.
As discussed on our last call Janssen received ft approval for Darzalex bass pro on May Onest with a broad label covering five up to seven indications for which the Ivy form is currently approved.
We estimate this label allows darzalex fives pro utilizing an hands to address the majority of multiple myeloma patients based on our assessment of the analyst estimates for how Darzalex IB is used today.
One of the indications for data was a weighted which were using combination with Pomalidomide index a mechanism.
Just days ago on July 31st Janssens development partner Genmab announced positive top line results from the phase three Apollo study, which was evaluating subcutaneous start there are two my map in combination with Pomalidomide index, a mechanism versus pomalidomide and back some of its own alone in patients with reef lap.
Or refractory multiple myeloma.
The study met the primary endpoint of improving progression free survival and the safety profile of dark two of them out as seat in combination with Pomalidomide index. A mechanism was reported to be consistent with the safety profile for east therapy separately.
Helen I. Torley: We look forward to this data being presented at a future medical meeting. On June 4th, we announced that the European Commission granted Gantzen a European Marketing Authorization for the subcutaneous form of Darzalex. The authorization included all currently approved dorsal X IV formulation indications in frontline and the relapsed and refractory multiple myeloma setting.
We look forward to the states had been presented at a future medical meeting.
On June 4th we announced at the European Commission granted Janssen European marketing authorization for the subcutaneous form of Darzalex.
Authorization included all currently approved Darzalex IB formulation indications in front line and the relapse and refractory multiple myeloma settings.
[noise] shortly after these approvals the subsidies form of Darzalex was launched in each market and the first commercial sales resulted in milestone payments to halozyme, a $15 million for the U.S. and $10 million for Europe.
Helen I. Torley: Shortly after these approvals, the subcutaneous form of Darzalex was launched in each market, and the first commercial sales resulted in milestone payments to Halozyme of $15 million for the U.S. and $10 million for Europe. Continuing with approvals, just last week, on August 4th, Janssen announced that Health Canada approved Darcellex SC in four regimens across five indications in patients with multiple myeloma, including in newly diagnosed, transplant ineligible patients and also relapsed and refractory. Now, let me move to the launch progress.
Continuing with approvals just last week on August the fourth Janssen and ends that health, Canada approved Darzalex S. C. In four regimens across five indications in patients with multiple myeloma, including in newly diagnosed transplant eligible patients and also relapsed and refractory.
Now, let me move to the launch progress. It's clearly obviously I'm still very early days and there's little detailed information I can share at this time and what we can see the is that on the second quarter 2020 financial results call. JNJ commented that it was pleased with the uptick it would seem for subcutaneous dose.
Helen I. Torley: It's clearly, obviously, still very early days, and there's little detailed information I can share at this time. What we can say is that on its second quarter 2020 financial results call, J&J commented that it was pleased with the uptake it was seeing for subcutaneous Darzalex and the benefits it provides to patients and healthcare providers. The value proposition offered by the subcutaneous form of Darzalex is strong. It provides the ability to reduce the administration time from what is often 4-6 hours for the IV form of daratumumab to just 3-5 minutes for the sub-Q. This can reduce the treatment burden for patients and caregivers, as well as provide value to the healthcare system, where we hear time and time again all the constraints on the past state of infusion-centered care and the challenges of providing nursing oversight for long infusions.
Darzalex and the benefits it provides to patients and the health care providers.
The value proposition offered by subcutaneous form of Darzalex is strong it provides the ability to reduce the administration time from what is often four to six hours for the Ivy form of Daratumumab to just three to five minutes for the Subcu.
Just can reduce treatment burden for patients and caregivers as well as provide value to the health care system, where we hear time and time again, all the constraints on the infusion center Pastie and the challenges, we're providing nursing oversight for long infusions.
Helen I. Torley: Turning now to the market opportunity for the subcutaneous form of Darzalex, analysts currently project sales for Darzalex at $3.9 billion in 2020, growing to $6.8 billion in 2024. Now this growth is projected to come from increasing penetration into the frontline settings.
Turning now to the Mark opportunity for the substation as form of Darzalex analysts currently project sales of four Darzalex, a $3.9 billion in twentytwenty growing to $6.8 billion in Twentytwenty for.
Now this growth is predicted to come from increasing penetration into the frontline setting.
[noise] Jensen the stated substation is formulation of darzalex utilizing enhanced because a core part of their future growth strategies supporting their goals for this expansion into the frontline setting in addition to increasing treatment in the community setting.
Helen I. Torley: Jensen has stated that the substantive formulation of Darzalex using in-hand is a core part of their future growth strategy, supporting their goals for this expansion into the frontline setting, in addition to increasing treatment in the community setting. And just the closing thoughts, I also want to highlight the positive phase 3 data from the Andromeda study, which was in light chain amyloidosis. This data was reported in June and was presented at the European Hematology Association meeting on June 14th. There are approximately between 30 and 45,000 patients in the United States and the European Union who have light-chain amyloidosis, and treatment options are limited today.
And just to close indoors like I also want to highlight on the positive phase three data from the Andromeda study, which was in light chain Amyloidosis. They stated was reported in June and was presented at the European Hematology Association meeting on June 14th.
There are approximately between 30 and 45000 patients in the United States in the European Union, who have like chain amyloidosis and treatment options are limited today.
This was the first ever study evaluating darzalex in this indication and we are delighted that only this was selected to be studied.
Helen I. Torley: This is the first ever study evaluating Darzalex in this indication, and we're delighted that only this was selected to be studied. Importantly, when Darzalec SC was in the hands was given in combination with cyclophosisphamide or Tezumib-Cyber-D, compared with 18% if you were, Very strong results. Gadsden has stated that it's looking forward to working with the health authority.
Importantly, when Darzalex SC was ENHANZE was given in common.
Nation was cyclophosphamide ports hasn't cyber deep at compared to cyber de alone the response rate.
Compared with 18% it.
Very strong result.
[laughter] had stated that it looking for with the health authorities.
We're certainly very excited by these three approvals by <unk> <unk> were granted in such a timely manner.
Helen I. Torley: We're certainly very excited by these three approvals and that they were granted in such a timely manner, for breast cancer and multiple myeloma, new treatment options. We look forward to providing further updates on the progress of these launches and also as we gain additional approvals in additional regions and indications. Let me move now to slide 5 and to our currently commercialized products in the U.S. and Europe. Roche continues to market its global vaccine, Hexella, and subcutaneous Herceptin or Herceptin Highlecta. Relative revenues from these more mature products are anticipated to decline modestly this year from biosimilars, but there was also... the COVID-19 pandemic. Now, adding to these revenues will be FedU.S. and Doris Elixir C in Europe. As we've noticed in the past, we expect 2020 to be a year where Janssen and Roche will focus on gaining access. In the U.S., this is typically a multi-month period required for full access.
From breast cancer in multiple myeloma, new treatment options thick.
Forward to providing further updates on the progress all these launches and also as we gain additional approvals in additional regions and indications.
Let me move now to slide five into are currently commercialized products in the U.S. in Europe.
Roche continues with its global banks myself, and subcutaneous herceptin or herceptin highlight though.
[noise] royalty revenues from these more mature products are anticipated.
The decline modestly this year not from Biosimilar as well there was oh.
19 pandemic.
No adding to these revenues will be fair, the U.S. and Darzalex S C.
In Europe.
As we've noticed in the past.
We expect Twentytwenty.
To be a year for Janssen and Roche will focus on gaining access in the U.S. is typically a multi month period required for flu like.
Just to be established as new products to get in formulary approvals I mean solution into the prescribing orders in the electronic medical records.
unknown: Transcripts provided by Transcription Outsourcing, LLC. In Europe, gaining reimbursement approval is the key next step, and this can take between six to nine months and several years. As a result, we expect Dorsalex and Fevgo to contribute modestly to royalties this year, with an expectation that everything will be in place for a robust uptake in 2021. Completing our update on royalties. High QVIA.
In Europe, gaining reimbursement approval is the key next step and this can take between six to nine months in several of the.
As a result, we expect darzalex unfair go to contribute modestly to royalties this year with an expectation that everything will be in place for robust uptake in twentytwenty one.
Completing her update on royalties.
Just approved products Hyqvia now a commercialized by Takeda.
Helen I. Torley: Now commercialized by Takeda. Received a positive opinion by the C.H.P., label in Europe to include the indication of secondary immunodeficiencies, to target the segment of the market, which the data has reported it estimated to represent about 15% of the new globulin use in the U.S. and Europe. Our expectations for the year, balancing the anticipated declines in the more..., with a new product launch in 2020, will be roughly flat with last year. Let me move now to our development products, which is where you can see a summary of all of the pipeline products that are being developed and utilized. Rising in Hands.
Received a positive opinion by the seat.
To be a label in Europe to include the indication of secondary Immunodeficiencies.
Upon.
The target the segment of the market, which Takeda has reported is estimated to represent about 15% of the mean globally news in the U.S. in Europe.
Expectations for the year ballot.
One thing the anticipated declines in the more.
For mature products with a new product, London, Twentytwenty will be roughly flat with last year.
Let me move now to our development products, which are where you can see a summary old the pipeline and products that are being developed usually.
Sizing in hands.
As I mentioned earlier, we expect a total of nine new trial start we continue to expect three new phase three trial starts.
Helen I. Torley: As I mentioned earlier, we expect a total of nine new trial starts, and we continue to expect three new phase three trial starts. These will come from the list that's shown here on the left of the completed or ongoing Phase 1 study for Competitive Reasoning. Recall that our partners do not announce their plans until the trials are over.
These will come from the list that show in here on the left of the completed or ongoing phase one studies.
The pad to different reasons.
Please recall our partners do not an on their plans until the trials.
He's our goal of one new phase two trial snakes, initiating a study with <unk>.
Helen I. Torley: Our goal of one new phase two trial makes initiating a study with, Participant in CIDP. And we continue to expect a total of five new Phase 1 trial starts with one addition currently uncertain due to COVID-19. As you'll hear in a moment, two of the 80 begun since our last call.
It's hard to Jim odd in C.I.D. Pete.
And we continue to expect a total of five new phase one trial starts with one it.
Currently a uncertain due to covert 19th.
I feel here in a moment to be pretty begun since our last call.
Let me know partner.
Helen I. Torley: Let me... In I3N9's last quarter, Ergenix initiated a Phase II study with F. Cartegimod and CIDP. Ergenix provided an update that a GoNoGo decision regarding potential enrollment of 30 patients in Part A of this trial is expected to occur in 2021. In May, Argenix announced that its Phase III ADAPT study, evaluating the intravenous form of F-cortisomode and mya
I think in as last quarter or Genex's initiated a phase two study with as Curtis remote and see I'd Pete.
Your next provided an update.
It's go no go decision regarding potential new enrollment of 30 patients impart eight.
But this trial is expected to occur in Twentytwenty one.
In may our Gen accidents that its phase three adapt study evaluating the intravenous form of ask her to come out in my seen at <unk> point.
Based on these positive results are Gentex has stated that.
Helen I. Torley: Based on these positive results, our genics has stated that it plans to discuss a bridging strategy for F-cardigymoid SC with ENHANCE in myosinia gravis with the FDA in the fourth quarter of this year. At Cardenics, we are pleased to report that the first patient has been dosed in phase 117 utilizing enhanced. ARJX117 is an antibody that binds to C2 and has the potential to reduce tissue inflammation and the adaptive immune response.
Got it plans to discuss a bridging strategy for ask her digit amod as seen with enhanced in my senior graph that is with the F.D. in the fourth quarter of this year panics. We're pleased to report that the first.
Just patient has being dosed in the phase 117 utilizing enhanced.
Air Gx 117 is an antibody that binds to see too with the potential to reduce tissue inflammation and be adaptive immune response, Bristol Myers squibb, no. They can well map anti cdseventy three.
Helen I. Torley: Bristom R. Squibnough, Bacon Kalamap, Anti-CG73, and Rilat Lameb in combination with Nivol Lameb. I'm delighted to announce that Bristol has now also initiated a Phase 1-2 study of ipilimumab in combination with nivolumab using our... Enhanced Technology This takes the number of targets in development by BMSNOW to four, and Roche continues with its phase. Now we also look forward to providing more updates as additional programs enter or advance in the clinic. Leave me no comment on our progress on new enhanced deals.
And let them up in combination with Nivolumab.
I'm delighted to announce at Bristol has no also initiated a phase one two study of Ipilimumab in combination with Nivolumab usually are.
ENHANZE technology.
This takes a number of targets and development by BMS no to four.
And Roche continues with its phase.
No. We also look forward to providing more updates as additional programs enter or events in the clinic.
Let me know comment on our progress a new ENHANZE deals. We continue to have one of the broader slates of on.
Helen I. Torley: We continue to have one of the broadest slates of on..., with both biotech and pharma companies that we've ever had. We did see some impact from the COVID-19 pandemic on the pace of our discussions in Q1 and early Q2. I'm really pleased to say that the pace of these discussions has returned to normal, and based on the slate of opportunities, I remain confident that we will find additional deals. As ever, the time... Now, let me...
Going discussions with both biotech and pharma companies that we've ever had.
We did see some impact from the code 19 pandemic in our pace of our discussions in Q1 in early Q2, I'm really pleased to see that the pace of these discussions has returned to normal and based on the fleet of opportunities I remain confident that we will find additional deals as ever at the time.
Now let me.
Turning to our anticipated growth in milestone revenues as shown on slide seven.
Na Sun: Please turn to our Anticipated Growth in Milestone Revenues, which as shown on slide 7, is projected to drive the strong growth in Milestone Revenues, which we know and based on the latest information from partners. We continue to project cumulative milestone revenues for the next three years of between 350 and 100 million dollars. This growth in projected milestone revenues is being driven by the larger milestone payments associated with new target approvals and the increase in the number of products advancing to later in the year, many of which are also associated with larger milestones. Now this near-term milestone revenue precedes royalty revenues and is also an important and strong indicator of growth, which we project to be approximately $1 billion in 2027, based on the non-risk-adjusted revenue projections for the programs that are currently in RRM planning for development.
Is projected to drive the strong growth and.
Milestone revenues between now and the based on the latest information from partner.
As we continue to predict cumulative milestone revenues in the next three years of routine 350.
This growth than projected miles some revenues being driven by the larger my Oh.
Just on payments associated with new target approvals and in the increase the number of products advancing to lead.
Sure stage development, many of which are also associated with larger milestones.
Now this near term milestone revenue precedes the royalty revenues and is also an important strong indicator to which we project to be approximately $1 billion in twentytwenty seven based on the non risk adjusted revenue projections for the programs were up that are currently in our and planning for development.
Let me turn now to slide eight and review our approach for value creation and capital return.
Na Sun: Let me turn now to slide 8 and review our approach to value creation and capital return. Our first priority remains to drive the growth in our enhanced business through collaborations and working to find new collaboration partners. With a strong projected free cash flow, our next goal is returning capital to investors via share repurchases with our three-year $550 million repurchase program. In addition, we continue to evaluate the potential for new technology platform expansion through acquisition and long-term revenue growth. In evaluating this, we're seeking a business that has high growth and high margins like our enhanced business. Now, with that overview and update, I'm now pleased to turn the call over to Elaine for our discussion. Session of our second quarter financial results.
Our first priority remains to drive the growth in our enhanced business by Maturations I'm working design you collaboration partners.
With the strong projected free cash flow. Our next quarter is returning capital to investors via share repurchases with our three year 550 million dollar report. In addition, we continue.
Due to evaluate the potential for new technology platform expansion through acquisition long term revenue growth.
In evaluating this we're seeking.
Boats that as a high growth in high margin like our enhanced business.
And with that overview and update Tom I'll know, please to turn the call over to lane for a disk.
Session over second quarter financial results.
Thank you Helen.
Na Sun: Thank you, Helen. I'll turn to slide nine for a review of our second quarter revenue. Total revenue for the second quarter was $55.2 million, an increase of 41% compared to $39.1 million in the prior year period, driven by the significant achievements of enhanced-based product approvals and launches by our partners. Royalty revenue for the quarter was $15.8 million, a decrease of 12%, driven primarily by the ongoing impact of competition from biosimilars and the impact of COVID-19 on Roche's sales. As royalties from new partner product approvals begin to ramp, this should offset the impact of biosimilar competition affecting the more mature partner products over the balance of the year. Product sales were $6.3 million in the quarter, representing an increase of 10% from the prior year period.
I'll turn to slide nine for a review of our second quarter revenues.
Total revenue for the second quarter was $55.2 million, an increase of 41% compared to $39.1 million in the prior year period.
Given by the significant achievement of enhance based product approvals and launches by our partner.
Royalty revenue for the quarter was $15.8 million a decreased 12% driven primarily by the ongoing impact of competition from bio Similars UN impacted cobot 19 on roche's sales.
As royalties from your partner product approvals begin to ramp this should offset the impact from biosimilar competition affecting the more mature partnered products over the balance every year.
Product sales were $6.3 million in the quarter, representing an increase of 10% from the prior year period. We continue to expect net product sales of <unk> will fluctuate on a quarter to quarter basis, depending on the needs of our collaboration partners.
Na Sun: We continue to expect that product sales of API will fluctuate on a quarter-to-quarter basis depending on the needs of our collaboration partners. Collaboration revenue in the quarter totaled $33 million, more than double the prior year period driven by two Janssen milestones related to the launches of subcutaneous DARSA laboratories in the US and the EU, which totaled $25 million in the quarter. In addition, we received $5 million related to the conversion of an option from a co-exclusive license to an exclusive license by our partner, BMS.
Collaboration revenue in the quarter totaled $33 million more than doubled the prior year period, driven by the two jaeson milestones related to the launches subcutaneous darzalex in the U.S., Andy you, which totaled $25 million in the quarter.
In addition, we received $5 million related to conversion of an option for me co exclusive license to an exclusive license by our partner Vietnam.
On slide 10, you'll find a more detailed breakdown of our second quarter piano.
Na Sun: On slide 10, you'll find a more detailed breakdown of our second quarter P&L. Let me begin with total operating expenses, which were $25.7 million in the second quarter, down 52% from $53.1 million in the prior year period. The overall decrease in total operating expenses resulted from our shift in strategic focus to the company's enhanced drug delivery technology in November of last year and related restructuring, which has now been completed. Cost of product sales was $5.7 million, up from $1.9 million in the year-ago period. This increase was principally driven by sales of bulk RHU-PH20 to certain of our partners and an increase in cost to support our product platform and serve our partners' supply needs. Research and development expenses of $9 million from $33.9 million in the prior year period as a result of halting our PEG-PH20 oncology drug development activities in November of last year.
Let me begin with total operating expenses, which were $25.7 million in the second quarter down 52% from $53.1 million in the prior year period.
Overall decrease in total operating expenses resulted from our shift in strategic focus to the company's enhance drug delivery technology in November of last year and related restructuring, which has now been completed.
Cost of product sales were $5.7 million up from $1.9 million in the year ago period. This increase was principally driven by sales a bulk alright, you page 20 to certain of our partners and an increase in cost to support our product platform and serve our partner supply.
Research and development expenses of $9 million from $33.9 million in the prior year period. As a result in halting are packed pitch 20 oncology drug development activities in November of last year.
We've been working to finalize the close out of remaining cost associated with our prior clinical trial activity and completed our restructuring of the company's operations in the second quarter two focused solely on in here.
Na Sun: We've been working to finalize the closeout of remaining costs associated with our prior clinical trial activities and completed our restructuring of the company's operations in the second quarter to focus solely on Enhance. SG&A expenses were $11 million, down from $17.3 million in the prior year, primarily due to the reduction in force and discontinuation of PEG-PH20-related launch expenses that were part of the company's restructuring.
As you know expenses were $11 million down from $17.3 million in the prior year, primarily due to the reduction in force and discontinuation of Peg page 20 related launch expenses that were part of the company's restructuring.
And I'm pleased to say that our net income through the quarter was $25.8 million or 19 cents per share compared to a net loss of $14.6 million or 10 cents per share in the second quarter of 2019.
Na Sun: And I'm pleased to say that our net income for the quarter was $25.8 million, or $0.19 per share, compared to a net loss of $14.6 million, or $0.10 per share, in the second quarter of 2019. And we expect this will be the beginning of sustainable profitability and cash flow generation for Halozyme. Cash, cash equivalents, and marketable securities were $385.4 million at June 30, 2020, compared to $421.3 million at December 31, 2019. This decrease reflects the impacts of our operating losses and share repurchase activities during the first half of 2020. Now I'll turn to slide 11 for our discussion of our 2020 financial guidance. We continually monitor the impact of the COVID-19 pandemic on our business and communicate with our partners and suppliers as to their plans and timelines.
And we expect this will be the beginning of sustainable profitability and cash flow generation for Halozyme.
Cash cash equivalents in marketable securities were $385.4 million at June Thirtyth 2020, compared to $421.3 million at December 31st 2019.
This decrease reflects the impact from our operating loss and share repurchase activity during the first half 2020.
Now turning to slide 11 for a discussion of our 2020 financial guidance.
We continually monitor the impact of the covert 19 pandemic on our business and communicate with our partners and suppliers.
Are there plans and timeline and based on that latest information and our planned expenditures for the year our guidance for 2020 remain unchanged.
Na Sun: And based on this latest information and our planned expenditures for the year, our guidance for 2020 remains unchanged. We continue to expect total revenues to be in the range of $230 million to $245 million, and earnings per share is expected to be in the range of $0.60 to $0.75. Excluding non-recurring expenses related to the wind-down of our former oncology operations in the first half of 2020, we expect annualized operating expenses, excluding COGS, to be at the top end of our guidance of $65 to $75 million in the fourth quarter of 2020, or between $18 million and $19 million for the quarter. Including those non-recurring expenses, full year 2020 operating expenses, excluding COGS, will be above $75 million. We understand that certain elements of our business can pose a challenge for modeling Halozyme earnings on a quarter-to-quarter basis, and to assist with this, let me now provide some color on the anticipated quarterly progression of our top line. However, collaborative revenues related to milestone payments are inherently variable.
We continue to expect total revenues to be in the range of 230 million to $245 million and earnings per share is expected to be in the range of 60 to 75 cents.
Excluding nonrecurring expenses related to the wind down of our former oncology operations in the first half and 2020, we expect annualized operating expenses, excluding Cogs. The at the top end of our guard $65 million to $75 million in the fourth quarter of 2024 between 18 18 million and 99.
$1 for the quarter.
Including those nonrecurring expenses will your 2020 operating expenses, excluding cogs will be above $75 million.
With regard to interest expense related to our convertible senior notes offering in November 2019, we expect to book quarterly interest expense of $5 million for $20 million total for the fiscal year.
We understand that certain elements of our business can pose a challenge for modeling halozyme earnings on a quarter to quarter basis and to assist with this let me now provide some color on the anticipated quarterly progression of our topline.
Collaborative revenues related to milestone payments are inherently variable. However, based on current partner plan, we expect a higher level of collaborative revenues in the fourth quarter, then in the third quarter of 2020.
Na Sun: However, based on current partner plans, we expect a higher level of collaborative revenues in the fourth quarter than in the third quarter of 2020. Product sales related to API are expected to be flat from Q2 to Q3 and then increase in the fourth quarter. Growth from royalties from new partner product launches is expected to offset pressure on royalties from more mature partner products.
Product sales related to <unk> are expected to be flat from Q2 to Q3, and then increase in the fourth quarter.
Gross from royalties from new partner product launches are expected to offset pressure on royalties from more mature partner products.
And that is expected to result in higher earnings per share in the fourth quarter, then in the third quarter of 2020.
With strong cash flow generation anticipated to be provided by a broad portfolio of enhance partner products overtime, we expect to be able to continue our $550 million three year share repurchase program that was authorized by our board of directors in November of 2019.
Na Sun: And that is expected to result in higher earnings per share in the fourth quarter than in the third quarter of 2020. With strong cash flow generation anticipated to be provided by a broad portfolio of enhanced partner products over time, we expect to be able to continue our $550 million three-year share repurchase program that was authorized by our Board of Directors in November of 2019. To date, we've completed approximately $254 million in share repurchases, of which we repurchased approximately $54 million in 2020, including $2 million worth of our common stock in the second quarter. Our average repurchase price year-to-date is $16.33. Given our confidence in our long-term prospects and commitment to providing long-term value for our shareholders, we anticipate repurchasing up to another $296 million available under the program between now and the end of 2022, in addition to utilizing our free cash flow to support both internal and external growth initiatives. Of this amount remaining under the program, we continue to plan to repurchase up to $96 million worth of shares during 2020, pending market conditions and other factors. With that, I'll now turn the call back to Helen.
To date, we've completed approximately $254 million in share repurchases of which we repurchased approximately $54 million in 2020, including $2 million worth of our common stock in the second quarter.
Our average repurchase prior year to date is $16.33.
Given our confidence in our long term prospects and commitment to providing long term value for our shareholders. We anticipate repurchasing up to another $296 million available under the program between now and the end of 2022.
In addition to utilizing our free cash flow to support both internal and external growth initiatives.
Oh this amount remaining under the program, we continue to plan to repurchase up to $96 million worth of shares during 2020 pending market conditions and other factors.
With that I'll now turn the call back to Helen.
Thanks Helane.
This is being one of the most important quarters and Halozyme history, not only did our partners received three critical regulatory approvals for high growth products that are expected to be important growth drivers of our royalty revenues in the coming years. We also achieved our first quarter of what we expect to be sustainable profitability.
Helen I. Torley: Thanks, Elaine. This has been one of the most important quarters in Halozyme history. Not only did our partners receive three critical regulatory approvals for high-growth products that are expected to be important growth drivers of our royalty revenues in the coming years, but we also achieved our first quarter of sustainable profitability. Despite the challenging times facing all companies, we are delighted to be in a position to maintain our financial outlook for the year. With two new commercial products utilizing the hands now available, we are more dedicated than ever to serving patients and the health care system alike with our disruptive solutions with the goal of improving patient experience and outcomes.
Despite the challenging times facing old companies, we're delighted to be in a position to maintain our financial outlook for the year.
With two new commercial product utilizing hands now available we are more dedicated than ever to serving patients and the health care system alike, with our disruptive submissions with the goal of improving patient experiences.
And outcomes.
And we're also is the strongest financial position ever as a company.
Well look forward to strong growth on our revenues profitability and cash flow in the coming quarters in years, placing isn't a strong position to deliver on our commitment to return capital to shareholders maintain our long term sustainable growth and maximize shareholder value.
And even a little we've already achieved the number a very important milestone events. Thus far in 2020 as you can see outlined on slide 12, there are many more anticipated for the remainder of the year.
Helen I. Torley: And we're also in the strongest financial position ever as a company. We look forward to strong growth in our revenues, profitability, and cash flow in the coming quarters and years, placing us in a strong position to deliver on our commitment to return capital to shareholders, maintain our long-term sustainable growth, and maximize shareholder value. And even though we've already achieved a number of very important milestone events thus far in 2020, as you can see outlined on slide 12, there are many more anticipated for the remainder of the year. These include continued momentum in the clinic, which is so critical for our partner products that Utilize Enhance, which is leading to nine new clinical trial starts in total in 2020, of which three are expected to be Phase III trial starts. None of this would be possible without our talented and dedicated team here at Halozyme, and I'd like to end by thanking everyone for your tremendous effort and these strong results. I would now be delighted to take your questions. So operator, please, would you open up the call?
These include continued momentum in the clinic, which is so critical for our partner products that utilize enhance which is leading to nine you clinical trial starts in total in 2020 of which three are expected to be phase three trial starts.
None of this would be possible without our talented and dedicated team here at Halozyme I'd like to end by thanking everyone for your a tremendous effort and these strong results I.
I would now be delighted to take your questions. So operator, please would you open up the call.
Yes, ma'am and ladies and gentlemen, as a reminder that is.
Our one to ask a question.
Your first question comes from them on Jim merchandise from Wells Fargo.
Yeah, Hi, guys. Congratulations on your first profitable quarter and all the progress over the course the year. So for a couple of questions. I guess first Helen you had the $1 billion oil to target for 2027 for some time I don't expect you're going to update that go beyond that today, but could you give.
So since the you know there seems to be some concern that you know post 2027 things could be challenged but maybe as you consider darzalex subcu IP and projector Herceptin IP and other products and the pipeline, what's sort of growth do you see beyond 2027.
unknown: And ladies and gentlemen, as a reminder... Star One, from West Park. Yeah, hi guys. Congratulations on your first profitable quarter and all the progress you have made over the course of the year so far. A couple questions. I guess first, Helen, you've had the $1 billion royalty target for 2027 for some time. I don't expect you're going to update that and go beyond that today, but could you give us a sense of, you know, there seems to be some concern that, you know, post-2027 things could be challenged, but maybe as you consider Darzalex, SubQ, IP, and Progetto Herceptin IP and other products in the pipeline, what sort of growth do you see beyond 2027?
Yeah. Thanks, Jim you know 2027, seven years ago, a way and we're showing this that tremendous projection of girls, which is really driven by the number of product launches that we're anticipating will happen as we said in the in the past the shape of occur post Twentytwenty seven is very much going to be influenced by.
How many new products, we launch between now and 20 to 27 and how many new co formulation patents we get.
The current projection of a billion is just based on the products. We currently have line of sight too and we already have line of sight to additional products and Twentytwenty. One that are going to move into the clinic and allow us to continue to grow past twentytwenty seven in terms of VAM contributing revenue because if you recall that in terms of our Uh huh.
Helen I. Torley: Yeah, thanks, Jim. You know, 2027, seven years away, and we're showing this tremendous projection of growth, which is really driven by the number of product launches that we're anticipating will happen. As we've said in the past, the shape of the curve post-2027 is very much going to be influenced by how many new products we launch between now and 2027 and how many new co-formulation patents we get. The current projection of a billion is just based on the products we currently have line of sight to, and we already have line of sight to additional products in 2021 that are going to move into the clinic and allow us to continue to grow past 2027 in terms of them contributing revenue.
Healthy term it is a minimal of 10 years and so you know it's too early to be absolutely sure what's going to happen. After 2027, but what we can say with certainty is we don't have the traditional royalty at cliffs out because of the co formulation patterns of royalties because we will have a day past 2027.
There is a very strong possibility we can achieve a continued revenue growth path that time or a flattening of revenue, but certainly I can be very confident that's not going to be a traditional royalty cliffs.
And then how one just on the central for additional deals and maybe with the Kirk fusion capabilities are challenged.
Helen I. Torley: Because, if you recall, in terms of our royalty term, it is a minimum of 10 years. And so, you know, it's too early to be absolutely sure what's going to happen after 2027. But what we can say with certainty is we don't have the traditional royalty cliff because of the co-formulation patterns of royalties because we will have a distant past 2027. There is a very strong possibility we can achieve continued revenue growth past that time or a flattening of revenue, but certainly, I can be very confident there's not going to be a traditional royalty cliff.
Typically as states or surgeries that drive increased imports.
Environment and the impact on.
I'd be infusions in fact, the central for deals.
Yes, we we started the year with with through a good deal of interest in in new deals that Jim and I would.
Hey, it's only increased as cold it has as you say impact at hospitals and patient willingness to go to hospitals. So we have a very blog broad.
Slate of interesting opportunities ahead of us both with biotech and with pharma. Some deals. It is always just hard to peg exactly when those new deals would happen, but to add to your point about cobot, 19, driving and launches and the value proposition.
Helen I. Torley: And then Helen, just on the potential for additional deals and maybe with the current fusion capabilities or challenge...particularly as states are surging with that drive, the increase in... the environment and the impact on IV infusions impacting the potential for DEALS.
Right and with Phase go Oh.
Fasting questions. When you think about the ability to take a four to six hour.
You to five minutes that has many companies and treat and the abilities.
Well in Jackson given in five minutes is also a new demonstration of an incredible value proposition. So all those factors are leading to a great series of discuss.
Helen I. Torley: Yeah, we started the year with a good deal of interest in new deals, Jim, and it's only increased as COVID has, as you say, impacted hospitals and patient willingness to go to the hospital. So we have a wide range of interesting opportunities ahead of us, both with biotech and with pharma deals. It is always just hard to peg exactly when those new deals will happen. But to add to your point about COVID-19 driving and launches and the value proposition [inaudible] When you think about the ability to take a four to six hour drive, Transcription Outsourcing, LLC, is also a new demonstration of an incredible value proposition. We'll have a deal. Terrific. Thanks, Helen.
We'll have a deal.
Terrific. Thanks Hello.
No one and Frank.
Yeah.
Goldman Sachs. Please go ahead.
Great. Thank you.
Thanks for taking the questions and congrats on the progress you just wanted to maybe touch base on the share repurchase program.
Talk is today.
The current levels versus your average purchase price and in the first quarter, how how are you thinking about.
How to pull the trigger in it.
So just color on how you think about thanks.
Yes portfolio manager so to speak.
I have a follow up after the optics.
All right Elaine would you.
Sure.
unknown: from Goldman Sachs, please go ahead. Great, thank you. Thanks for taking the questions and congrats on the progress. I just wanted to maybe touch base on the share of purchase program stock is today versus current levels versus your average purchase price in the first quarter. How are you thinking about how to pull that trigger? So just give me an idea of how you think about things, portfolio manager, so to speak. I'll have a follow-up after that.
Oh, so Greg with respect to the specific size and timing of repurchases. We obviously take into account a host of factor.
Including <unk> <unk>.
All of repurchasing up to $150 million of our common stock. This year recalled members of our common stock year to date, and obviously focused on.
Value to shareholders consistent with what we've previously.
unknown: All right, Elaine, we can do this...
Maybe maybe another question I have just tests to.
Na Sun: Sure. So Greg, with respect to the specific size and timing of repurchases, we obviously take into account a host of factors, including transcripts provided by Transcription Outsourcing, LLC.
On your search for.
Issues and wondering if there is done.
More new developments.
Since the last time, we checked on.
No new developments we are.
Do anything different platforms.
As we mentioned in the past we don't go away.
unknown: Maybe another question I have just has to do on your search for or New Developments since the last time we checked in.
Enhance growth story ahead of us, but what we want to do is seeks to see can we accelerate that revenue growth. So what we're doing is evaluating a whole range of technologies and platforms and.
unknown: No new developments; we are... do anything, different platforms. As we've mentioned in the past, we don't feel like, but we're pretty early on in our investigation of those, and we will provide the appropriate updates when we do find the right thing, if we find it.
But we're pretty early on in our investigation of those and Oh, we will let will provide the appropriate update so when we do find the right thing if we find it.
Okay, Great and maybe just one last one from me please.
Helen I. Torley: Great. And maybe just one last one for me, please, in combination with Nevo? I'm just wondering, as we think about that particular clinical trial start and then some of the other clinical trial starts that are more phase one in nature, are there certain milestones that we need to be aware of, or are the milestones that you're expecting really more associated with these three types of trials? Thanks.
The living in combination with.
Nivo.
I'm just wondering as we think about.
That particular.
Clinical trial start and then some of the other clinical trial starts that are more phase one in nature that part.
Or just.
Just wondering what.
If there are certain.
Milestones.
We should think that would be associated with such early clinical trials or the are the milestones that you're expecting a really more so.
Three types of trials. Thanks.
Yes. It is a regime jamul with regard to those Alaska Lane just to give a a just a brief overview as two as to the milestones for the year.
Na Sun: Yeah, it is a range with regard to those. I'll ask Elaine just to give a brief overview as to the milestones for the year.
Sure. So you know as you can imagine we have regular conversations with our partners and up based on that latest feedback. We continue to expect fix milestone bearing study start including three phase three starts this year or so we continue to have good visibility income.
Na Sun: Sure. So, you know, as you can imagine, we have regular conversations with our partners. And based on this latest feedback, we continue to expect six milestone-bearing study starts, including three phase three starts, this year. So we continue to have good visibility and confidence in our guidance for the year. And the other thing I'd note is that, you know, we benefit from a diversified business model with multiple Blockbuster products and programs from some of the leading pharma and biotech partners that will be driving our potential milestones in royalty.
Evidence on our guidance for the year and the other thing I'd note is that you know we benefit from a diversified business model with multiple blockbuster products and programs from some of the leading pharma and biotech partners.
That will be driving our potential milestones and royalties.
Okay. Thank you very much for taking my questions and congrats again.
unknown: Okay, thank you very much for taking my questions, and congrats again.
Thanks, Greg.
unknown: Thanks, Greg.
And your next question comes on line of Eyeq three from BMO. Please go ahead.
unknown: And your next question comes from the line. Aiko Ojii from BMO, please go ahead.
Hi, good afternoon, everyone. Thanks for taking my question congratulations on being successful quarter.
unknown: Good afternoon, everyone. Thanks for taking my question. Congratulations on a successful quarter.
We're just curious about the type of deals that you're looking at concerns.
Helen I. Torley: I just, we're just curious about the type of deals that you're looking at in terms of extending NIH partnerships. You kind of developed a pattern of, you know, immunology, oncology, those types of indications. Are there any type of metrics that you can kind of provide to give us a better sense of some of these deals that you're currently in discussions with biopharma companies?
Oh, it's trending in a you know a partnerships.
Product development that are now you know bellaghy oncology, though for presentations are there any type of a true that's one thing I know provided to.
But as says Oh, what do you feel that you're currently in discussions as well.
Well form of London.
Oh, no specific metrics weekend, we can give you and what what we do look to assess and we also have companies coming to was tends to be companies who've gotten ivy product either approved or in development that has got a longer infusion time, whether looking to transform it into subcu.
Helen I. Torley: No specific metrics we can give you, and what we do look to assess, and we also have companies coming to us, tends to be companies who've got an IV product, either approved or in development, that has got a longer infusion time, where they're looking to transform it into sub-Q, or the other area we end up in a lot of discussions about are current sub-Q therapies, where companies are looking to extend the dosing interval. And so there is a broad range between currently marketed products, as well as products in development, where people are seeking to optimize the product before they even get to the marketplace.
Or the other area, we end up in a lot discussions over current subcu therapies, where companies are looking to extend the dosing interval and so there's a broad range between currently marketed products as well as products in development, where people are are seeking to optimize the product before they even get to the marketplace. So if you imagine and while we wait.
Helen I. Torley: So if you imagine, and we have ended up, I think, having a lot of oncology drugs, with the signing of the deal with Argenix, you obviously are seeing us moving more into the immunology and neurology space, with working in Myasthenia Gravis, and there are no therapeutic limitations in hand. We can work in any therapeutic area where somebody has that need, where they have a high volume infusion, where we can transform it from IV to sub-Q, or we can allow them to deliver a higher dose of the sub-Q that can perhaps extend the dosing interval. So it has a very broad applicability, not limited by therapeutic area.
We have ended up I think I'm, having a lot of oncology drugs with the signing of the deal with our Janick sat you obviously are seeing us moving more into the immunology neurology space with working in my senior gravis and that our new therapeutic limitations for in hand, we can we.
Work in any therapeutic area, where somebody has that need where they have a high volume infusion.
We can transform it from Ivy subcu or weekend at a low them to deliver a higher dose of the sub acute that can perhaps extended dosing interval. So a very broad applicability not limited by therapeutic area.
unknown: Okay, that's helpful. Just a quick follow-up to that.
Okay Thats helpful. Just a quick follow that is there a target in mind you guys have concerns of how many deals you want to have executed over the course of about specific timeline, maybe three or four years.
Helen I. Torley: Is there a target in mind that you guys have in terms of how many deals you want to have executed over the course of a specific timeline, maybe over the next three or four years? You know, we want to execute maybe three to four deals that might lead to a billion dollars in total revenues in 2029 or so on and so forth. Is there any type of guidance that you can provide on that?
We want to execute maybe three to four deals that might lead to a billion dollars and total revenues 2029, or so and so forth.
Is there a couple of guided that should provide on that.
[laughter] no specific guidance your goals. We do believe there are at multiple additional deals that we can have the we can never give you specific timing for the.
Helen I. Torley: No specific guidance or goals. We do believe there are multiple additional deals that we can have. However, we can never give a specific timetable for the goals.