Q1 2026 Halozyme Therapeutics Inc Earnings Call

May 11, 2026

Speaker #1: To HALOZYME's first quarter, 2026 financial and operating results conference call. Please note, this event is being recorded. I will now turn the call over to Tram Bui, HALOZYME's Vice President of Investor Relations and Corporate Communications.

Speaker #1: Please go ahead.

Speaker #2: Thank you, Operator. Good afternoon and welcome to our first quarter 2026 financial and operating results conference call. In addition to the press release issued today after the market closed, you can find a supplementary slide presentation that will be referenced during today's call in the Investor Relations section of our website.

Speaker #2: Leading the call will be Dr. Helen Torley, HALOZYME's President and Chief Executive Officer, who will provide an update on our business and David Ransay, our interim Chief Financial Officer, will review our financial results as well as our outlook.

Speaker #2: On today's call, we will be making forward-looking statements as outlined on slide 2. I would also refer you to our SEC filings for a full list of risk and uncertainties.

Speaker #2: During the call, both GAAP and non-GAAP financial measures will be discussed. Certain non-GAAP or adjusted financial measures are reconciled with a comparable GAAP financial measures in our earnings press release and slide presentation.

Speaker #2: I will now turn the call over to Dr. Helen Torley, and we will start on slide 3.

Speaker #3: Thank you, Tram. And good afternoon, everyone. We started 2026 with exceptional momentum. The continued strong performance of our currently approved products gives us strong conviction in the 2026 to 2028 financial guidance.

Speaker #3: Our recent New Deal momentum and new nominations by partners accompanied by the expanding number of new Phase 1 starts is bending the curve in the 2029-plus period.

Speaker #3: And the business momentum is resulting in strong free cash flow. We have clear priorities for capital allocation, reinvesting at compelling returns to create new value and returning value to our shareholders.

Speaker #3: Today, my presentation will address how our strategy will deliver durable value for investors during our current guidance period of 2026 to 2028, continue to combine value in the 2029-plus timeframe, and deploy robust free cash flow judiciously over the short and the long term.

Speaker #3: I'll begin with our 2026 to 2028 timeframe, which is shown on slide 4. The key drivers of revenue in the 2026 to 2028 timeframe are our first 10 enhanced launch products, which include Star Select Subcutaneous, Vivegard Hydrulo, and Fezco.

Speaker #3: Our strong first quarter financial results reflect continued adoption of subcutaneous drug delivery enabled by Enhance, with royalty revenues driven by our commercial Enhance portfolio increasing 43% year over year to $241 million.

Speaker #3: Total revenue for the quarter increased 42% year over year to $377 million, reflecting the strength all of our commercial royalty portfolio. This revenue growth translated into adjusted EBITDA of $230 million, and non-GAAP earnings per share of $1.60, representing a greater than 40% increase year over year.

Speaker #3: I'll move now to slide 5. Based on these results, I am pleased to reaffirm our full year 2026 financial guidance and the 2026 to 2028 financial guidance.

Speaker #3: Two highlights I'll point out: for 2026, we continue to project Enhance royalties to exceed $1 billion for the first time representing 30% to to 35% growth over 2025.

Speaker #3: And during the 2026 to 2028 timeframe, we project our adjusted EBITDA margin will be greater than 65%, growing to approximately 70%. Moving now to slide 6.

Speaker #3: As you know, our business converts revenue to free cash flow very efficiently, which provides us with the capital to deliver durable, long-term value for our shareholders.

Speaker #3: During 2026 to 2028, we plan to deploy our capital predominantly in four key areas. Firstly, we will invest to maximize the value of our organic investments, predominantly to support partner success, with investments in Enhance, Hypercon, and Surf Bio.

Speaker #3: Secondly, we are pleased to announce the new $1 billion share buyback authorization, with an expectation of buying back at least $400 million of our shares in 2026.

Speaker #3: Over the next years, we project we will achieve a 3% annual share buyback yield. Our own equity is an asset we know best, and we're comfortable reinvesting against a compelling return plan.

Speaker #3: Thirdly, we plan to deleverage further by retiring the 2027 and 2028 remaining notes at their maturity. And fourthly, we will continue to evaluate drug delivery M&A opportunities, with a continued focus on identifying high-demand, large-time drug delivery licensing technologies.

Speaker #3: I will say that based on our high bar and our assessment year-to-date, it is unlikely that we will identify a drug delivery opportunity that meets our criteria to transact on in 2026, and we do not foresee M&A outside of drug delivery.

Speaker #3: I'll move now to our second timeframe, which is 2029-plus. Let me be very clear: we intend to bend the trend far more favorably beginning in 2029 than our skeptics fear.

Speaker #3: Let me explain why I believe this to be the case on slide 7. Our revenue in and post-2029 will come from four key sources.

Speaker #3: The first driver is the continued performance and contribution from our 10 current Enhance launch products. The second driver is up to 30 new launches in the 2029-plus timeframe.

Speaker #3: A rising from the current Enhance pipeline of 13 products that are projected to be in clinical development by the end of 2026. The third driver is the two Hypercon product launches in the 2030-31 timeframe.

Speaker #3: And the fourth driver is the next wave of launches that will result from partners progressing additional targets and are already signed Hypercon and Enhance agreements, and from new Hypercon and Enhance collaboration and licensing agreements.

Speaker #3: Turning now to slide 8, I'll see a few words in each of these significant revenue opportunities beginning with the first driver: the current 10 Enhance products.

Speaker #3: As a reminder, all of our signed contracts have long durations. What you may not know is that the majority of the royalty revenue from these 10 products is still to come.

Speaker #3: Yes, let me repeat that: the majority of the royalty revenue is still to come. Let me dimensionalize that comment. By the end of 2025, we estimate that our 10 approved products generated about $25% of their projected potential royalties.

Speaker #3: We estimate that we have about $66% of the additional projected royalty revenue still to come in the next six years between 2026 and 2032.

Speaker #3: With the remaining 9% in the years beyond that. In some industries, they call our 66% royalty revenue still to come in the next six years, with more after that, our contracted revenue backlog, which I'm sure sounds familiar to many of our shareholders.

Speaker #3: I'll move now to the second driver: the current Enhance pipeline products, with first launches projected in the 2029-plus timeframe. We project to have up to 13 additional Enhance partner products potentially approved in the 2029-plus timeframe.

Speaker #3: These have arisen from new collaboration and licensing agreements, and from current partners nominating and adding additional targets. The new revenue from these projected launches will add to and buoy our revenues.

Speaker #3: In the first quarter, I'm pleased to report that two Enhance partners initiated phase one studies of new targets, in alignment with our expectation for six new Enhance targets to initiate phase one testing in 2026.

Speaker #3: This adds to the seven products that are already in development. Our Gen X-initiated a phase one study with ARGX124, making this the fifth product in the ORGENIX collaboration to advance to the clinic.

Speaker #3: And the second Enhance partner, who for competitive reasons does not wish us to provide detailed information, initiated and completed their phase one testing in the quarter.

Speaker #3: In parallel, we continue to build the Enhance pipeline by supporting our current partners to identify and advance new targets to be nominated, these actions also add to this new wave of launches in the 2029-plus period.

Speaker #3: I'm pleased that in the first quarter, Pfizer nominated a new undisclosed non-exclusive target to be studied with Enhance, which will add to the already impressive 13 Enhance product pipeline with the potential to launch in the 2029-plus timeframe.

Speaker #1: As a reminder, all of our signed contracts have long durations. What you may not know is that the majority of the royalty revenue from these 10 products is still to come.

Speaker #1: Yet let me repeat that: the majority of the royalty revenue is still to come. Let me demantalize that comment. By the end of 2025, we estimate that our 10 approved products generated about $25% of their projected potential royalties.

Speaker #3: I will now move to the third driver: Hypercon. We intend to make Hypercon the next Enhance-like success story. To achieve this goal, we plan to invest in manufacturing capacity that will allow Halozyme to offer end-to-end services to our Hypercon partners.

Speaker #1: We estimate that we have about $66% of the additional projected royalty revenue still to come in the next 6 years between 2026 and 2032.

Speaker #3: We foresee offering manufacturing from drug substance to commercial fill-finish for Hypercon products. As part of this plan, we are currently finalizing the clinical supply manufacturing as we ramp up our manufacturing efforts, and we now project that the first two phase one clinical starts will occur in the first half of 2027.

Speaker #1: With the remaining 9% in the years beyond that. In some industries, they call our $66% royalty revenue still to come in the next 6 years with more after that are contracted revenue backlog, which I'm sure sounds familiar to many of our shareholders.

Speaker #3: The launch timing for these two products continues to be 2030-2031. As I've said in the past, we continue to see the opportunity for Hypercon to be a very large achieving approximately $1 billion in royalty revenues by the mid-2030s.

Speaker #1: I'll move now to the second driver, the current enhanced pipeline products with first launches projected in the 2029 plus timeframe. We project to have up to 13 additional enhanced partner products potentially approved in the 2029 plus timeframe.

Speaker #3: Turning now to slide 9 and our fourth 2029-plus driver: the next waves of launches that will result from partners progressing additional targets and are already signed Hypercon and Enhance agreements, and from new Hypercon and Enhance collaboration and licensing agreements.

Speaker #1: These have arisen from new collaboration and licensing agreements and from current partners nominating and adding additional targets. The new revenue from these projected launches will add to and buoy our revenues.

Speaker #1: In the first quarter, I'm pleased to report that two enhanced partners initiated phase one studies of new targets, in alignment with our expectation for six new enhanced targets to initiate phase one testing in 2026.

Speaker #3: Under our current Enhance and Hypercon agreements, there remains opportunities for partners to nominate additional targets. As an example, there are up to another 15 Hypercon targets available in already signed CLAs, and tens of targets for Enhance.

Speaker #1: This adds to the seven products that are already in development. Our Gen X initiated a phase one study with ARGX 124, making this the fifth product in the Gen X collaboration to advance to the clinic.

Speaker #3: We're seeing heightened interest in expansion of targets consistent with the interest in new CLAs. Turning now to the new agreements, we are delighted to have signed three new collaboration and licensing agreements in 2026, already meeting our goal for 2026 to execute three new deals this year.

Speaker #1: And the second enhanced partner who for competitive reasons does not wish us to provide detailed information initiated and completed their phase one testing in the quarter.

Speaker #3: And we are not stopping here. Let me say that we have line of sight to additional agreements in 2026 based on the status of our ongoing discussions.

Speaker #1: In parallel, we continue to build the enhanced pipeline by supporting our current partners to identify and advance new targets we nominated. These actions also add to this new wave of launches in the 2029 plus period.

Speaker #3: We are delighted that with these agreements, we receive upfront milestones and have the potential to earn milestones and up to mid-single-digit royalties, royalties being the most important recurring and the largest revenue stream for each product.

Speaker #1: I am pleased that in the first quarter, Pfizer nominated a new undisclosed non-exclusive target to be studied with enhanced, which will add to the already impressive 13 enhanced product pipeline with the potential to launch in the 2029 plus timeframe.

Speaker #3: Each of these deals includes one or more targets that represent multi-billion dollar total sales potential. In May, we enter the new Enhance collaboration agreement with GSK for multiple promising oncology targets including with antibody-drug conjugates.

Speaker #1: I will now move to the third driver, Hypercon. We intend to make Hypercon the next enhanced-like success story. To achieve this goal, we plan to invest in manufacturing capacity that will allow HALOZYME to offer end-to-end services to our Hypercon partners.

Speaker #3: This collaboration with GSK expands our Enhance footprint with another global pharmaceutical leader, and marks our first Enhance collaboration for antibody-drug conjugates, extending our Enhance technology into one of the fastest-growing and largest TAM areas of oncology.

Speaker #1: We foresee offering manufacturing from drug substance to commercial fill finish for Hypercon products. As part of this plan, we are currently finalizing the clinical supply manufacturing as we ramp up our manufacturing efforts and we now project that the first two phase one clinical starts will occur in the first half of 2027.

Speaker #3: We believe Enhance has the potential to meaningfully improve the benefit-risk profile of these therapies by enabling subcutaneous administration and reducing the treatment burden for patients.

Speaker #1: The launch timing for these two products continues to be 2030-2031. As I've said in the past, we continue to see the opportunity for Hypercon to be a very large achieving approximately $1 billion in royalty revenues by the mid-2030s.

Speaker #3: We look forward to the initiation of the first clinical trial under this agreement. In early April, we announce the new Hypercon collaboration with Vertex Pharmaceuticals, enabling the use of our Hyperconcentration technology with up to three Vertex targets.

Speaker #1: Turning now to slide nine, our fourth 2029 plus driver, the next waves of launches that will result from partners progressing additional targets and are already signed Hypercon and enhanced agreements and from new Hypercon and enhanced collaboration and licensing agreements.

Speaker #3: Hypercon addresses real-world delivery challenges by reducing injection volume and enabling at-home or office-based low-volume administration. Vertex is a recognized leader in developing transformative medicines, and this agreement demonstrates growing demand for next-generation delivery solutions that extend beyond Enhance.

Speaker #1: Under our current enhanced and Hypercon agreements, there remains opportunities for partners to nominate additional targets. As an example, there are up to another 15 Hypercon targets available in already signed CLAs and tens of targets for enhanced.

Speaker #3: In May, we announce the second Hypercon collaboration and licensing agreement, this time with Aruka, for the use of Hypercon with ORKA001. In development for psoriasis and related inflammatory diseases, and for up to one additional target.

Speaker #1: We're seeing heightened interest in expansion of targets consistent with the interest in new CLAs. Turning now to the new agreements, we are delighted to have signed three new collaboration and licensing agreements in 2026 already meeting our goal for 2026 to execute three new deals this year.

Speaker #3: ORKA001 recently presented phase two data, showing best-in-class efficacy, making this an exciting future potential entrant into what is already a 20 to 25 billion dollar global moderate to severe psoriasis market.

Speaker #1: And we are not stopping here. Let me say that we have line of sight to additional agreements in 2026 based on the status of our ongoing discussions.

Speaker #3: These collaborations further validate Hypercon as a differentiated royalty-bearing durable revenue duration technology that supports our expectation that Hypercon will drive a separate and additional royalty engine, projected to achieve an estimated $1 billion in royalty revenue in the mid-2030s.

Speaker #1: We are delighted that with these agreements, we receive upfront milestones and have the potential to earn milestones and up to mid-single digit royalties, royalties being the most important recurring and the largest revenue stream for each product.

Speaker #1: Each of these deals includes one or more targets that represent multi-billion dollar total sales potential. In May, we enter the new enhanced collaboration agreement with GSK for multiple promising oncology targets including with antibody drug conjugates.

Speaker #3: To date, Hypercon has signed CLAs with five companies for a total of 17 potential targets. And we project to continue to add to this already impressive number of CLAs and potential targets for Hypercon just as we are building for Enhance and soon for SurfBio to result in commercial product launches throughout the 2030s.

Speaker #1: This collaboration with GSK expands our enhanced footprint with another global pharmaceutical leader and marks our first enhanced collaboration for antibody drug conjugates. It also includes Operations Vertex Pharmaceuticals, enabling the use of our hyper-concentration technology with up to three Vertex targets.

Speaker #3: I trust that you will agree that our four drivers of revenue strategy will deliver durable, long-term value to our shareholders. Let me now provide some details on product progress, all reinforcing the durable growth story.

Speaker #3: Moving to slide 10, our 10 launch products, including Darzalic subcutaneous, Vibrat-Hydrulo, and Fezco, continue to demonstrate strong revenue growth, which will be further fueled by expanding indication approvals.

Speaker #3: Let me start with Darzalic, which is the gold standard in multiple myeloma and remains Johnson & Johnson's number one product. In the first quarter of 2026, Darzalic generated approximately $4 billion in global sales, representing nearly 18% operational growth.

Helen Torley: Collaboration with Vertex Pharmaceuticals enabling the use of our Hypercon technology with up to 3 Vertex targets. Hypercon addresses real-world delivery challenges by reducing injection volume and enabling at-home or office-based low-volume administration. Vertex is a recognized leader in developing transformative medicines, and this agreement demonstrates growing demand for next-generation delivery solutions that extend beyond ENHANZE. In May, we announced a second Hypercon collaboration and licensing agreement, this time with Oruka, for the use of Hypercon with ORKA-001 in development for psoriasis and related inflammatory diseases and for up to 1 additional target. ORKA-001 recently presented phase II data showing best-in-class efficacy, making this an exciting future potential entrant into what is already a $20 billion to $25 billion global moderate to severe psoriasis market.

Helen Torley: Collaboration with Vertex Pharmaceuticals enabling the use of our Hypercon technology with up to three Vertex targets. Hypercon addresses real-world delivery challenges by reducing injection volume and enabling at-home or office-based low-volume administration. Vertex is a recognized leader in developing transformative medicines, and this agreement demonstrates growing demand for next-generation delivery solutions that extend beyond ENHANZE. In May, we announced a second Hypercon collaboration and licensing agreement, this time with Oruka, for the use of Hypercon with ORKA-001 in development for psoriasis and related inflammatory diseases and for up to one additional target. ORKA-001 recently presented phase II data showing best-in-class efficacy, making this an exciting future potential entrant into what is already a $20 to 25 billion global moderate to severe psoriasis market.

Speaker #3: This sustained double-digit growth is remarkable and a testament to the product and to J&J's development and commercial strategy. This strong performance translated into $129 million in royalty revenue for Hail Essence during the quarter, reflecting a 26% year-over-year increase and underscoring the strength and durability of this important product.

Speaker #3: As you notice from the higher royalty revenue growth rate, achieved in the first quarter, the royalty rate step-up was achieved faster during the first quarter of 2026 than in prior years.

Speaker #3: For a patient with multiple myeloma, what the Enhance-enabled subcutaneous delivery of Darzalic has meant is a treatment time which has reduced from multiple hours to just minutes, and a threefold lower chance of experiencing a potentially life-threatening side effect called infusion-related reactions.

In may we announced the second hyperco collaboration in licensing agreement. This time with a ruca for the use of hypercon with Ora's 001.

In development for psoriasis and related inflammatory diseases. And for up to 1 additional Target,

Speaker #3: Think of what this time back can mean to a patient who is fighting cancer. Additional growth is projected to come from new indications, in the first quarter, the FDA-approved Darzalic's fast growth in its fifth frontline approval.

Orka 00001 recently presented Phase 2 data showing best-in-class efficacy, making this an exciting future potential entrance into what is already a $20 to $25 billion global moderate to severe psoriasis market.

Helen Torley: These collaborations further validate Hypercon as a differentiated, royalty-bearing, durable revenue-generating technology that supports our expectation that Hypercon will drive a separate and additional royalty engine projected to achieve an estimated $1 billion in royalty revenue in the mid-2030s. We project to continue to add to this already impressive number of CLAs and potential targets for Hypercon, just as we are building for ENHANZE and soon for Surf Bio to result in commercial product launches throughout the 2030s. I trust that you will agree that our 4 drivers of revenue strategy will deliver durable long-term value to our shareholders. Let me now provide some details on product progress, all reinforcing the durable growth story. Moving to slide 10.

Helen Torley: These collaborations further validate Hypercon as a differentiated, royalty-bearing, durable revenue-generating technology that supports our expectation that Hypercon will drive a separate and additional royalty engine projected to achieve an estimated $1 billion in royalty revenue in the mid-2030s. We project to continue to add to this already impressive number of CLAs and potential targets for Hypercon, just as we are building for ENHANZE and soon for Surf Bio to result in commercial product launches throughout the 2030s. I trust that you will agree that our four drivers of revenue strategy will deliver durable long-term value to our shareholders. Let me now provide some details on product progress, all reinforcing the durable growth story. Moving to slide 10.

These collaborations further validate. Hypercon is a differentiated royalty bearing durable Revenue, duration technology.

Speaker #3: And also approved Tikvaly plus Darzalic's fast growth for as early as second-line treatment for patients with relapsed or refractory multiple myeloma. I'll turn now to our GenX's Vibrat-Hydrulo with Enhance.

That supports our expectations, that hypercon will drive a separate and additional royalty engine projected to achieve an estimated billion dollars in royalty, Revenue in the mid 2030s.

Speaker #3: In the first quarter of 2026, Vibrat generated approximately $1.3 billion in global sales, representing nearly 63% growth. Vibrat-Hydrulo continued to be a growing and meaningful contributor to the royalty revenue during the quarter, increasing $119% to $46.3 million resulting from growing demand and uptake.

To date hypercon is science with 5 companies for a total of 17 potential targets and we project to continue to add to this already. Impressive number of clas and potential targets for hypercon. Just as we are building for enhanced and soon for serve bio to result in commercial product, launches throughout the 2030s,

I trust that you will agree that our four drivers of revenue strategy will deliver durable, long-term value to our shareholders.

Speaker #3: The introduction of the pre-filled syringe for Vibrat-Hydrulo with Enhance has driven an acceleration in subcutaneous uptake, reflected by the subcutaneous growth outstripping total growth through its strong profile to reduce the administration burden and increase flexibility for patients with generalized myasthenia gravis and CIDP allowing work and travel where this may not have been possible before.

Let me now provide some details and products, all reinforcing the durable growth story.

Helen Torley: Our 10 launch products, including DARZALEX subcutaneous, VYVGART Hytrulo, and Phesgo, continue to demonstrate strong revenue growth, which will be further fueled by expanding indication approvals. Let me start with DARZALEX, which is the gold standard in multiple myeloma and remains Johnson & Johnson's number one product. In Q1 2026, DARZALEX generated approximately $4 billion in global sales, representing nearly 18% operational growth. This sustained double-digit growth is remarkable and a testament to the product and to J&J's development and commercial strategy. This strong performance translated into $129 million in royalty revenue for Halozyme during the quarter, reflecting a 26% year-over-year increase and underscoring the strength and durability of this important product.

Moving to slide 10.

Our ten launch products, including Darzalex, Aceptan, 5G, Trouillot, and Fesco, continue to demonstrate strong revenue growth, which will be further fueled by expanding indication approvals.

Speaker #3: In CIDP, which remains earlier in its launch, our GenX continued to see steady progress, supported by increasing prescriber familiarity, expanding payer coverage, and the convenience of the subcutaneous formulation.

Let me start with DARZALEX, which is the gold standard in multiple myeloma and remains Johnson & Johnson's number one product.

In the first quarter of 2026, darlex generated approximately 4 billion dollars in global sales representing nearly 18% operational growth.

Speaker #3: Looking ahead, in addition to continued penetration and adoption of the two currently approved subcutaneous indications, we see meaningful growth opportunities driven by label expansions in myasthenia gravis.

This sustained, double-digit growth is remarkable and a testament to the product and the changes in development and commercial strategy.

Speaker #3: Last Friday, our GenX announced that Vibrat and Vibrat-Hydrulo received FDA approval as the first and only treatment approved for all serotypes of adult patients with generalized myasthenia gravis.

Helen Torley: As you notice from the higher royalty revenue growth rate achieved in the Q1, the royalty rate step-up was achieved faster during the Q1 of 2026 than in prior years. For a patient with multiple myeloma, what the ENHANZE-enabled subcutaneous delivery of DARZALEX has meant is a treatment time which has reduced from multiple hours to just minutes and a threefold lower chance of experiencing a potentially life-threatening side effect called infusion-related reactions. Think of what this time back can mean to a patient who is fighting cancer. Additional growth is projected to come from new indications. In the Q1, the FDA approved DARZALEX FASPRO in its fifth frontline approval and also approved TECVAYLI plus DARZALEX FASPRO for as early as second-line treatment for patients with relapsed or refractory multiple myeloma. I'll turn now to argenx's VYVGART Hytrulo with ENHANZE.

This strong performance translated into $129 million in royalty revenue for HERs, and during the quarter reflected a 26% year-over-year increase, underscoring the strength and durability of this important product.

Speaker #3: Our GenX has also reported positive phase three data in ocular myasthenia gravis, estimated by our GenX to affect approximately 7,000 patients in the US alone.

As you notice from the higher royalty, the revenue growth rate achieved in the first quarter—the royalty rate step-up was achieved faster during the first quarter of 2026 than in prior years.

Speaker #3: These populations when both approved would double the potential addressable myasthenia gravis patient base from launch doubling the Hail Essence opportunity too. Moving now to Fezco.

For a patient with multiple myeloma, what the ENHANZE-enabled subcutaneous delivery of Darzalex has meant is the treatment time, which is reduced from multiple hours to just minutes, and a three-fold lower chance of experiencing a potentially life-threatening side effect called infusion-related reactions.

Speaker #3: Roche reported that Fezco continues to deliver strong growth, increasing 27% year over year to 686 million Swiss francs or approximately $877 million US dollars.

Think of what this time back. Can mean to a patient who is fighting cancer

additional growth is projected to come from new indications.

Speaker #3: This performance generated 30.2 million dollars in royalty revenue for Hail Essence, representing 25% year over year growth. This small difference between reported sales and Hail Essence royalties was the result of currency.

In the first quarter, the FDA approved doors like FastPro in its fifth frontline approval and also approved take valley plus stars like FastPro or as early as second-line treatment for patients with relapsed or refractory multiple myeloma.

Speaker #3: Roche reiterated its expectation to reach at least 60% conversion and emphasized that Fezco is expected to maintain a strong and durable revenue tail. I'll move now to slide 11, and highlight how the growth of the more recently launched partner products with the continued growth of Darzalic's fast growth, Vibrat-Hydrulo, and Fezco will deliver strong revenues in 2029 plus.

I'll turn now to our Gen X's 5, but our trullo within hands.

Helen Torley: In the first quarter of 2026, VYVGART generated approximately $1.3 billion in global sales, representing nearly 63% growth. VYVGART Hytrulo continued to be a growing and meaningful contributor to the royalty revenue during the quarter, increasing 119% to $46.3 million resulting from growing demand and uptake. The introduction of prefilled syringe for VYVGART Hytrulo with ENHANZE has driven an acceleration in subcutaneous uptake, reflected by the subcutaneous growth outstripping total growth through its strong profile to reduce the administration burden and increase flexibility for patients with generalized myasthenia gravis and CIDP, allowing work and travel where this may not have been possible before. In CIDP, which remains earlier in its launch, argenx continued to see steady progress supported by increasing prescriber familiarity, expanding payer coverage, and the convenience of the subcutaneous formulation.

in the first quarter of 2026 5G generated approximately 1.3 billion dollars in the global sales representing nearly 63

Growth.

Speaker #3: We have four recently launched products, the subcutaneous formulations of Ocrevis, Obdivo, Tecentriq, and Vibrat with Enhance. Each of these products represents a significant blockbuster opportunity for subcutaneous use, collectively addressing an estimated $30 billion total IV and subcu market opportunity in 2028 based on analyst estimates.

5G Trill continued to be a growing and meaningful contributor to the royalty revenue during the quarter, increasing 119% to $46.3 million, resulting from growing demand and an uptick.

The introduction of the pre-filled syringe revive got her truly with enhanced has driven an acceleration in such any update, reflected by the subcutaneous growth outstripping total.

Speaker #3: I'll share two recent highlights, one for Ocrevis Zenovo and one for Vibrat subcu, which have been reported by our partners, which underscore the continued momentum across this portfolio.

Through its strong profile to reduce the administration burden and increase flexibility for patients with generalized myasthenia gravis and CIDP, allowing work and travel where this may not have been possible before.

Speaker #3: For Ocrevis Zenovo, Roche highlighted strong and accelerating uptake of the Enhance-enabled subcutaneous formulation, which continues to meaningfully expand access to Ocrevis across multiple sclerosis care settings.

Is formulation.

Helen Torley: Looking ahead, in addition to continued penetration and adoption of the 2 currently approved subcutaneous indications, we see meaningful growth opportunities driven by label expansions in myasthenia gravis. Last Friday, argenx announced that VYVGART and VYVGART Hytrulo received FDA approval as the first and only treatment approved for all serotypes of adult patients with generalized myasthenia gravis. argenx has also reported positive phase III data in ocular myasthenia gravis, estimated by argenx to affect approximately 7,000 patients in the US alone. These populations, when both approved, would double the potential addressable myasthenia gravis patient base from launch, doubling the Halozyme opportunity too. Moving now to Phesgo.

Speaker #3: Roche reported that there are now approximately 24,000 patients globally receiving subcutaneous Ocrevis, representing an increase of roughly 7,000 patients versus the prior quarter and acceleration relative to the fourth quarter trends.

Looking ahead, in addition to continued penetration and Adoption of the 2 currently approved. Subcutaneous indications. We see meaningful growth opportunities driven by label expansions in my senior gravis.

Speaker #3: Of note, Roche emphasized that approximately 60% of US Ocrevis Zenovo starts are now coming from community practices, and around half of the new subcutaneous Ocrevis patients are naive to brand.

Last Friday Organics announced that 5G guard and 5G guard had trullo received FDA approval as the first and only treatment approved for all stereotypes of adult patients with generalized, myio gravis.

Organics has also reported positive Phase 3 data in ocular M. gravis, estimated by Arjun to affect approximately 7,000 patients in the US alone.

Speaker #3: This underscores Zenovo's ability to expand the addressable market by reducing infusion burden and enabling treatment outside of the traditional infusion centers. Roche reiterated its peak brand sales expectation of $9 billion Swiss francs by 2029, which includes a brand expansion of approximately $2 billion Swiss francs of sales as a result of additional new opportunity created by the easier-to-use subcutaneous formulation.

These populations, when both approved, would double the potential addressable myograph as patient brace from launch, doubling the HALO opportunity to—

Helen Torley: Roche reported that Phesgo continues to deliver strong growth, increasing 27% year over year to CHF 686 million or approximately $877 million. This performance generated $30.2 million in royalty revenue for Halozyme, representing 25% year-over-year growth. The small difference between reported sales and Halozyme royalties was a result of currency. Roche reiterated its expectation to reach at least 60% conversion and emphasized that Phesgo is expected to maintain a strong and durable revenue tail. I'll move now to slide 11 and highlight how the growth of the more recently launched partner products with the continued growth of DARZALEX FASPRO, VYVGART Hytrulo, and Phesgo will deliver strong revenues in 2029+. We have four recently launched products, the subcutaneous formulations of OCREVUS, OPDIVO, TECENTRIQ, and RYBREVANT with ENHANZE.

Moving out of sales, go.

Roche reported that Phesgo continues to deliver strong growth, increasing 27% year-over-year to 686 million Swiss francs, or approximately $877 million US dollars.

Speaker #3: Let me now highlight the new momentum with Vibrat, which has been driven by the launch of the Enhance SC formulation. In the first quarter, Johnson & Johnson reported sales of $257 million for Vibrat plus LeCluse, representing an 80% year over year growth, which has been driven by launch uptake and share gains across regions.

This performance generated $30.2 million in royalty revenue for Halozyme, representing 25% year-over-year growth.

A small difference between reports of sales and sales and royalties was the result of currency.

Speaker #3: Increasing contribution from Vibrat fast growth, the subcutaneous formulation with Enhance, is supporting adoption and helping reinforce Vibrat's positioning as a new standard of care in EGFR mutated non-small cell lung cancer.

Speaker #3: Looking ahead, G&J has identified Vibrat as an important longer-term growth driver with their projections that this will be a $5 billion brand. I'll move now to slide 12.

I'll move now to slide 11 and highlight how the growth of the more recently launched partner products. With the continuous growth of darlac saspro, vaghar hydral and fesco will deliver strong revenues in 2029 Plus

Helen Torley: Each of these products represents a significant blockbuster opportunity for subcutaneous use, collectively addressing an estimated $30 billion total IV and subQ market opportunity in 2028 based on analyst estimates. I'll share two recent highlights, one for OCREVUS ZUNOVO and one for RYBREVANT subQ, which have been reported by our partners, which underscore the continued momentum across this portfolio. For OCREVUS ZUNOVO, Roche highlighted strong and accelerating uptake of the ENHANZE-enabled subcutaneous formulation, which continues to meaningfully expand access to OCREVUS across multiple sclerosis care settings. Roche reported that there are now approximately 24,000 patients globally receiving subcutaneous OCREVUS, representing an increase of roughly 7,000 patients versus the prior quarter and acceleration relative to the Q4 trends.

We have four recently launched products. These are subcutaneous formulations of OKRA, OBDIVO, to CENTRIC, and RYBREVANT brands with enhanced...

Speaker #3: In closing my section, I want to make several important comments. Firstly, today we announced a new $1 billion share repurchase program. Signaling our confidence and conviction in our business.

Speaker #3: Secondly, we're pleased to reaffirm our full year 2026 guidance and reiterate our 2026 to 2028 financial guidance. And thirdly, we have four drivers of revenue growth in the 2029 plus time period.

each of these products represents a significant Blockbuster opportunity. For subcutaneous use collectively, addressing an estimated 30 billion dollar total Ivy, and subq Market opportunity in 20208 based on analyst assessments.

I'll share two recent highlights: one for Ochre—this is the notebook—and one for Raber events, sub Q, which have been reported by our partners and underscore the continued momentum across this portfolio.

Speaker #3: The continued performance of our 10 approved Enhance products, a pipeline by the end of 2026 of 13 additional Enhance products with potential for launches beginning in 2029, two hypercon launches projected in the 2030-2031 time frame, and multiple additional launches that will arise from new nominations that are currently signed contracts and from new collaboration and licensing agreements.

Or, or, this new rollout highlighted strong and accelerating uptake of the enhanced-enabled. There's subjectivity in its formulation, which continues to meaningfully expand access to all of us, multiple sclerosis care settings.

Speaker #3: By owning a share of Hail Essence, you're owning a broad swath of the biopharma industry. Let me now introduce you to David Ramsey and welcome him back as our interim chief financial officer.

Helen Torley: Of note, Roche emphasized that approximately 60% of US OCREVUS ZUNOVO starts are now coming from community practices, and around half of the new subcutaneous OCREVUS patients are naive to brand. This underscores ZUNOVO's ability to expand the addressable market by reducing infusion burden and enabling treatment outside of the traditional infusion centers. Roche reiterated its peak brand sales expectation of CHF 9 billion by 2029, which includes a brand expansion of approximately CHF 2 billion of sales as a result of additional new opportunity created by the easier-to-use subcutaneous formulation. Let me now highlight the new momentum with RYBREVANT, which has been driven by the launch of the ENHANZE SC formulation.

Rose reported that there are now approximately 24,000 patients globally receiving subcutaneous OPUSc, representing an increase of roughly 7,000 patients versus the prior quarter and an acceleration relative to the fourth quarter trends.

Speaker #3: David's deep knowledge of Hail Essence, strong capital markets, and investor expertise has enabled a seamless transition and immediate impact. David, thank you, Helen. Let me start by saying how excited I am to be back at Hail Essence and to step into this role as such a strong point in the company's evolution.

Of note, I want to emphasize that we brought 26% of U.S. Okay, of the SOLI starts are now coming from community practices, and around half of the new subcutaneous OKUS patients are naive to brand.

This underscores zenova ability to expand the address for Market by reducing infusion burden and enabling treatment outside of the traditional infusion.

Speaker #3: I was pleasantly surprised to learn about our deal pipeline and how we are still in the early stages of realizing the full potential of our Enhance royalties.

Speaker #3: Hail Essence is operating from a position of strength, and my focus is on maintaining the disciplined framework and execution already in place. Supporting our partners, investing in our core business, and working to ensure the long-term growth and durability of our royalty businesses.

Row reiterated its peak brand sales expectation of 9 billion Swiss francs by 2029, which includes a brand expansion of approximately 2 billion Swiss francs of sales, as a result of additional new opportunity created by the easier-to-use subcutaneous formulation.

Let me highlight the new momentum with the Rybrevant event, which has been driven by the launch of the enhanced SC form.

Helen Torley: In the first quarter, Johnson & Johnson reported sales of $257 million for RYBREVANT plus LAZCLUZE, representing an 80% year-over-year growth, which has been driven by launch uptake and share gains across regions. Increasing contribution from RYBREVANT FASPRO, the subcutaneous formulation with ENHANZE, is supporting adoption and helping reinforce RYBREVANT's positioning as a new standard of care in EGFR-mutated non-small cell lung cancer. Looking ahead, J&J has identified RYBREVANT as an important longer-term growth driver, with their projection that this will be a $5 billion brand. I'll move now to slide 12. In closing my section, I want to make several important comments. Firstly, today we announced a new $1 billion share repurchase program, signaling our confidence and conviction in our business. Secondly, we're pleased to reaffirm our full-year 2026 guidance and reiterate our 2026 to 2028 financial guidance.

Speaker #3: We delivered a strong start to the year with results consistent with expectations and robust year over year royalty growth. Adjusted EBITDA grew meaningfully, even as we continue to invest in hypercon and serve bio, which is a clear demonstration of the opportunity we have to invest in our core businesses while maintaining the operating leverage inherent in our high margin royalty-driven business model.

In the first quarter, Johnson & Johnson reported sales of $257 million for a RYEV event plus Loess, representing an 80% year-over-year growth, which has been driven by launch update and share gains across regions.

Speaker #3: Let me now turn to our detailed first quarter results on slide 13. Revenue increased approximately 42% to $376.7 million, compared to $264.9 million in the prior year period.

Increasing contribution from ryber vent. FastPro the subcutaneous formulation with enhanced is supporting adoption, and helping reinforce ryber man's positioning as a new standard of care in egfr mutated non small cell, lung cancer,

Looking ahead g&j has identified rapper Banner as an important longer-term, growth driver with their projections that this will be a 5 billion dollar brand.

Speaker #3: This performance was driven by broad-based strength across the business, including strong growth in royalty revenue and higher product sales to partners. Royalty revenue of $240.7 million increased approximately 43% from $168.2 million in the prior year period.

A move now to slide 12.

In closing, my section, I want to make several important comments. Firstly, today we announced a new 1 billion dollars. Share repurchase program, signaling our confidence and conviction in our business.

Speaker #3: Reflecting the continued commercial success of key Enhance partnered products, including subcutaneous Darzalex, Five Guard Hytrulo, and Fezco, as well as the continued ramp from recently launched SC therapies, Ocrevis, Opdivo, Tecentriq, and Vibrat.

Helen Torley: Thirdly, we have four drivers of revenue growth in the 2029 plus time period. The continued performance of our 10 approved ENHANZE products, a pipeline by the end of 2026 of 13 additional ENHANZE products with potential for launches beginning in 2029, 2 Hypercon launches projected in the 2030, 2031 time frame, and multiple additional launches that will arise from new nominations that are currently signed to contract and from new collaboration and licensing agreements. By owning a share of Halozyme, you're owning a broad swath of the biopharma industry. Let me now introduce you to David Ramsay and welcome him back as our Interim Chief Financial Officer. David's deep knowledge of Halozyme, strong capital markets, and investor expertise has enabled a seamless transition and immediate impact. David?

Secondly, we're pleased to reaffirm our full year 2026 guidance and reiterate our 2026 to 2028 Financial guidance.

And thirdly, we have 4 drivers of Revenue growth in the 2029 plus time period.

Speaker #3: Research and development expenses were 25.6 million dollars, compared to 14.8 million dollars in the prior year period, as we integrate our hypercon and serve bio acquisitions.

A pipeline by the end of 2026 of 13. Additional enhanced products with potential for launches beginning in 2029

Speaker #3: Selling general and administrative expenses were 57.9 million in the quarter, compared to 42.4 million in the prior year period. Adjusted EBITDA increased 42% to $229.5 million from $162 million in the prior year period, driven by continued strong royalty growth.

Two Hypercon launches are projected in the 2030–2031 time frame, and multiple additional launches will arise from new nominations that are currently signed contracts, and from new collaboration and licensing agreements.

By owning a share of Halozyme, you're owning a broad swath of the biopharma industry.

Speaker #3: Gap diluted earnings per share was $1.22, compared to $0.93 in the prior year period, and non-gap diluted earnings per share was $1.60, compared to $1.11 in the first quarter of 2025.

Let me know. Introduce you to David Ramsey and welcome him back as our interim Chief Financial Officer.

David's deep knowledge of Hazzard, along with his strong capital markets and investor expertise, has enabled a seamless transition and immediate impact.

Speaker #3: We ended the quarter with net leverage of approximately 2.5 times, reflecting the acquisitions of hypercon and serve bio. Following our announced plan to buy back at least $400 million in shares this year, we project our net leverage will be approximately 1.2 times by the end of 2026, supported by our strong cash generation.

David.

David Ramsay: Thank you, Helen. Let me start by saying how excited I am to be back at Halozyme and to step into this role at such a strong point in the company's evolution. I was pleasantly surprised to learn about our deal pipeline and how we are still in the early stages of realizing the full potential of our ENHANZE royalties. Halozyme is operating from a position of strength, and my focus is on maintaining the disciplined framework and execution already in place, supporting our partners, investing in our core business, and working to ensure the long-term growth and durability of our royalty businesses. We delivered a strong start to the year with results consistent with expectations and robust year-over-year royalty growth.

Thank you Helen. Let me start by saying how excited I am to be back at Halo zyme and to step into this role as such a strong point. In the company's Evolution, I was pleasantly surprised to learn about our deal Pipeline and how we are still in the early stages of realizing the full potential of our enhanced royalties.

Speaker #3: Turning to our 2026 outlook, as Helen briefly touched upon, we are reiterating the strong financial guidance the company provided earlier this year. As shown on slide 14, we continue to expect total revenue of $1.71 billion to $1.81 billion, representing year over year growth of 22 to 30%, driven by royalty revenues and product sales from API.

Halo I'm is operating from a position of strength and my focus is on. Maintaining the discipline framework and execution already in place, supporting our partners investing in our Core Business and working to ensure the long-term growth and durability of our royalty businesses.

David Ramsay: Adjusted EBITDA grew meaningfully even as we continue to invest in Hypercon and Surf Bio, which is a clear demonstration of the opportunity we have to invest in our core businesses while maintaining the operating leverage inherent in our high margin, royalty-driven business model. Let me now turn to our detailed first quarter results on slide 13. Revenue increased approximately 42% to $376.7 million, compared to $264.9 million in the prior year period. This performance was driven by broad-based strength across the business, including strong growth in royalty revenue and higher product sales to partners.

Speaker #3: Royalty revenues of $1.13 billion to $1.17 billion representing year over year growth of 30 to 35%. We continue to expect Darzalex SC, Vive Guard Hytrulo, and Fezco to drive these strong expectations.

We delivered a strong start to the year with results, consistent with expectations and robust year-over-year royalty growth. Adjusted EBIT, DOG, grew meaningfully. Even as we continue to invest in HyperCon and serve Bio, which is a clear demonstration of the opportunity. We have to invest in our core businesses while maintaining the operating leverage inherent in our high-margin, royalty-driven business model.

Speaker #3: With a growing contribution from recently launched Enhance products, we expect adjusted EBITDA of between 1.125 billion and 1.205 billion, which includes approximately $60 million of planned investment in hypercon and serve bio.

Let me now turn to our detailed first quarter results on Slide 13.

Revenue increased approximately 42% to 376.7 million compared to 264.9 million in the prior year period.

Speaker #3: And non-gap diluted EPS of $775 to $825, which does not assume the impact of any potential future share repurchases. I am pleased with the continued strength of our business as reflected in our strong first quarter performance and the team's execution.

David Ramsay: Royalty revenue of $240.7 million increased approximately 43% from $168.2 million in the prior year period, reflecting the continued commercial success of key ENHANZE partner products, including subcutaneous DARZALEX, VYVGART Hytrulo, and Phesgo, as well as the continued ramp from recently launched SC therapies, OCREVUS, OPDIVO, TECENTRIQ, and RYBREVANT. Research and development expenses were $25.6 million compared to $14.8 million in the prior year period as we integrate our Hypercon and Surf Bio acquisitions. Selling general and administrative expenses were $57.9 million in the quarter compared to $42.4 million in the prior year period. Adjusted EBITDA increased 42% to $229.5 million from $162 million in the prior year period, driven by continued strong royalty growth.

This performance was driven by broad-based strength across the business, including strong growth in royalty revenue and higher product sales to partners.

Royalty revenue of $240.7 million increased approximately 43% from $168.2 million in the prior year period.

Speaker #3: We are still in the early stages of realizing the value from our Enhance business, and we are investing in hypercon and serve bio to drive the next blockbuster royalty business.

Speaker #3: Our business model positions us well to sustain long-term value creation and I look forward to contributing to that progress. With that, I'll turn the call back to Helen.

Reflecting the continued commercial success of key enhanced partner products, including subcutaneous Starlex 5G Guard, Hyqvia, Trouillot, and Fisgo, as well as the continued ramp from recently launched SC therapies, Okras, Aivo, Tocentric, and Ryber brands.

Speaker #1: Thank you, David. In conclusion, let me just close by reiterating what makes Hail Essence such a compelling investment. We demonstrate our conviction today with our new $1 billion share repurchase program.

Research and development. Expenses were 25.6 million compared to 14.8 million in the prior year period. As we integrate, our hypercon and serve bio acquisitions.

Speaker #1: The continued strong performance of our currently approved products and the increasing number of indications gives us strong confidence in the 2026 to 2028 financial guidance.

Selling, general, and administrative expenses were $57.9 million in the quarter, compared to $42.4 million in the prior year period.

Adjusted EBITDA increased 42% to $229.5 million from $162 million in the prior year period.

Speaker #1: And we plan to stun skeptics and bend the curve in the 2029 plus period, building on top of the durable, substantial revenue of our 10 approved products, where we have realized only 25% of the revenue to date and project to receive 66% of the total projected royalties between 2026 and 2032.

David Ramsay: GAAP diluted earnings per share was $1.22 compared to $0.93 in the prior year period. Non-GAAP diluted earnings per share was $1.60 compared to $1.11 in the first quarter of 2025. We ended the quarter with net leverage of approximately 2.5 times, reflecting the acquisitions of Hypercon and Surf Bio. Following our announced plan to buy back at least $400 million in shares this year, we project our net leverage will be approximately 1.2 times by the end of 2026, supported by our strong cash generation. Turning to our 2026 outlook, as Helen briefly touched upon, we are reiterating the strong financial guidance the company provided earlier this year.

driven by continued strong royalty growth

Diluted earnings per share was $1.22 compared to $0.93 in the prior year period, and non-GAAP diluted earnings per share was $1.60 compared to $1.11 in the first quarter of 2025.

Speaker #1: That's a 2.5 times still to come. On top of this strong base of revenue, our four drivers of revenue, the continued contribution of our currently launched 10 products, the potential launches of up to 13 additional Enhance products beginning in 2029, the two projected hypercon launches in 2030 and '31, and the additional launches arising from currently signed agreement new nominations and new CLAs for an Enhance hypercon and serve bio, all add long-term durable revenue streams.

we ended the quarter with net leverage of approximately 2.5 times reflecting Acquisitions of hypercon, and surf bio,

Following our announced plan to buy back at least $400 million in shares, this year we project our net leverage will be approximately 1.2 times by the end of 2026, supported by our strong cash generation.

David Ramsay: As shown on slide 14, we continue to expect total revenue of $1.71 billion to $1.81 billion, representing year-over-year growth of 22% to 30%, driven by royalty revenues and product sales from API. Royalty revenues of $1.13 billion to $1.17 billion, representing year-over-year growth of 30% to 35%. We continue to expect DARZALEX SC, VYVGART, Hytrulo, and Phesgo to drive these strong expectations with a growing contribution from recently launched ENHANZE products. We expect adjusted EBITDA of between $1.125 billion and $1.205 billion, which includes approximately $60 million of planned investment in Hypercon and Surf Bio. Non-GAAP diluted EPS of $7.75 to $8.25, which does not assume the impact of any potential future share repurchases.

Turning to our 2026 Outlook as Helen. Briefly tested upon, we are reiterating the strong financial guidance to companies provided earlier this year.

Speaker #1: The business momentum is resulting in strong free cash flow. I shared that we have clear priorities for disciplined capital allocations and we're deploying this to create new value and return value to our shareholders.

As shown on slide 14, we continue to expect total revenue of 1.71 billion to 1.81 billion representing year-over-year growth of 22 to 30% driven by royalty, revenues and product sales from API.

Speaker #1: Thank you very much for your attention today, and Operator, you can now open the line for questions.

Speaker #2: We will now begin the question and answer session. If you would like to ask a question, please press star one to raise your hand.

Relative revenues of 1.13 billion to 1.17 billion, representing year-over-year growth of 30 to 35%. We continue to expect Darcel xse vaart high trouillot and fees go to drive these strong expectations with a growing contribution from Recently launched enhanced products.

Speaker #2: To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality.

We expect adjusted EBITDA of between $1.125 billion and $1.205 billion, which includes approximately $60 million of planned investment in HYCON and SERVE Bio.

Speaker #2: If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jason Butler with Citizens JMP.

David Ramsay: I am pleased with the continued strength of our business as reflected in our strong Q1 performance and the team's execution. We are still in the early stages of realizing the value from our ENHANZE business. We are investing in Hypercon and Surf Bio to drive the next blockbuster royalty business. Our business model positions us well to sustain long-term value creation. I look forward to contributing to that progress. With that, I'll turn the call back to Helen.

And non-GAAP diluted EPS, so $7.75 to $8.25, which does not assume the impact of any potential future share repurchases.

And I'm pleased with the continuous strength of our business as reflected in our strong first quarter performance. And the teams execution,

Speaker #2: Your line is now open. Please go ahead.

Speaker #3: Hey, thanks for taking the questions and congrats on the quarter. First one, Helen, when you think about the 2029 and after Enhance product profile, what do you expect to be the biggest products in that portfolio?

We are still in the early stages of realizing, the value, from our enhanced business, and we are investing in hypercon and serve bio to drive next Blockbuster royalty business.

Helen Torley: Thank you, David. In conclusion, let me just close by reiterating what makes Halozyme such a compelling investment. We demonstrated our conviction to date with our new $1 billion share repurchase program. The continued strong performance of our currently approved product and the increasing number of indications gives us strong confidence in the 2026 to 2028 financial guidance. We plan to stun skeptics and bend the curve in the 2029 plus period, building on top of the durable, substantial revenue of our 10 approved products, where we have realized only 25% of the revenue to date, and project to receive 66% of the total projected royalties between 2026 and 2032. That's a 2.5 times still to come.

Speaker #3: And then when are they coming to essentially peak in your model? And then secondly, the hypercon transactions or discussions that are ongoing today, including the transactions you announced, how many of those conversations were ongoing before you acquired the company?

Thank you, David. In conclusion, let me just close by reiterating what makes Halozyme such a compelling investment.

Speaker #3: And how many new conversations are you having or relationships that you're bringing to the conversation?

We demonstrate our conviction today with our new $1 billion repurchase program. The continued strong performance of our currently approved products and the increasing number of indications give us strong confidence in the 2026 to 2028 financial guidance.

Speaker #1: Yeah, thanks so much, Jason. Yeah, we're very excited today to share additional color what gives us so much conviction on the trajectory we're going to have post-2029.

And we plan to stand skeptic and bend the curve in the 2029 plus period. Building on top of the durable substantial revenue of 10 approved products where we have realized only 25% of the revenue to date and project to receive 66% of the total.

Speaker #1: I think what we shared was, and I think it was probably a surprise to many of our investors, that we still have 66% of the revenue from our currently 10 launch products coming between 2026 and 2032.

Helen Torley: On top of this strong base of revenue, our four drivers of revenue, the continued contribution of our currently launched 10 products, the potential launches of up to 13 additional ENHANZE products beginning in 2029, the 2 projected Hypercon launches in 2030 and 2031, and the additional launches arising from currently signed agreement, new nominations, and new CLAs for ENHANZE, Hypercon and Surf Bio all add long-term durable revenue streams. The business momentum is resulting in strong free cash flow. I shared that we have clear priorities for disciplined capital allocation, and we're deploying this to create new value and return value to our shareholders. Thank you very much for your attention today. Operator, you can now open the line for questions.

In 2026 and 2032. That's a 2.5 times still to come.

Speaker #1: There are multiple large contributors within that, Jason. We haven't broken it down on an individual basis, but when you think about products like Ocrevis, like Ribavant, like Vive Guard, I mean, really, I can name multiple ones like Darzalex, of course.

Speaker #1: We are continuing to expect to see substantial revenues from each and every one of those contributing. And that's not to talk about the additional launches we're going to start seeing from the current Enhance pipeline.

On top of this strong base of Revenue, our 4 drivers of Revenue that continued contribution of our currently launched 10 products, the potential launches of up to 13, additional enhanced products. Beginning in 2029 the 2 project hyper gun launches in 2013 and 31 and the additional launches arising from currently signed agreement. You nominations and UCLA for an enhanced hydrogen and serve file, all ads long-term, durable revenue streams.

The business momentum is resulting in strong. Free, cash flow.

Speaker #1: So a very bright future for sure. Turning now to hypercon, in terms of the discussions, I would say one was ongoing beforehand, one was new, and the company does continue in discussion with multiple other groups, including some early feasibility testing, which is a step before the companies will sometimes make a decision to move to a CLA.

I heard that we have clear priorities for disciplined capital allocations and we're deploying this to create new value and return value to our shareholders.

Thank you very much for your attention today, and operator, you can now open the line for questions.

Operator: We will now begin the question-and-answer session. If you would like to ask a question, please press star one to raise your hand. To withdraw your question, press star one again. We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Please stand by while we compile the Q&A roster. Your first question comes from the line of Jason Butler with Citizens JMP. Your line is now open. Please go ahead.

We will now begin the question and answer session. If you would like to ask a question, please press star 1 to raise your hand to withdraw. Your question, press star 1 again.

Speaker #1: It doesn't always work that. Some go straight to CLA. But also there's some additional targets that are now in development, testing. So to find the formulation before going into clinical.

Speaker #1: And so I can say there's been really a remarkable progress since the acquisition, both from targets and collaborations that are already underway, as well as this broadening of interest, which is just part of a secular trend I've talked a lot about.

We ask that you pick up your handset when asking a question to allow for optimum sound quality. If you are muted locally, please remember to unmute your device. Stand by while we compile the Q&A roster.

Jason Butler: Thanks for taking the questions, and congrats on the quarter. First one, Helen, when you think about the 2029 and after ENHANZE product profile, what do you expect to be the biggest products in that portfolio? When are they coming to essentially peak in your model? Secondly, the Hypercon transactions or discussions that are ongoing today, including the transactions you announced, how many of those conversations were ongoing before you acquired the company? How many new conversations are you having or re-relationships that you're bringing to the conversation?

Your first question comes from the line of Jason Butler with citizens jmpp. Your line is now open. Please go ahead.

Speaker #1: SC and SC Delivery at Home is really the target product profile now for so many disease conditions.

Speaker #3: Great, thank you.

Speaker #2: Your next call comes from the line of Brendan Smith with TD Cowan. Your line is now open. Please go ahead.

Speaker #4: Great, thanks for taking the questions and congrats on the quarter, guys. Maybe just first, for the two phase one clinical starts with hypercon assets, I think now going to be in first half of next year.

Speaker #4: Can you help us understand, I guess, what's left to finish up there on Hail Essence side from just the manufacturing standpoint, get those ready to go, and can you just maybe confirm that timing to hear what those two programs are will still be whenever they start that phase one?

Hey, thanks for taking the questions and congrats on the quarter. Um, first 1, how when you think about the, the 2029, um, and after enhance product profile what what do you expect to be the biggest products in that portfolio, uh, and then and when are they coming to to essentially peak in your model? And then secondly, the the hypercon transactions or discussions that are ongoing today um, including the transactions. You announced how many of those conversations were ongoing before you acquired the company and how many new conversations that you having or or relationships with your brain?

Into the conversation.

Helen Torley: Yeah. Thanks so much, Jason. Yeah, we're very excited today to share additional color, what gives us so much conviction on the trajectory we're going to have post 2029. I think what we shared was, and I think it was probably a surprise to many of our investors, that we still have 66% of the revenue from our currently 10 launched products, coming between 2026 and 2032. There are multiple large contributors within that, Jason. We haven't broken it down on an individual basis. When you think about products, like OCREVUS, like RYBREVANT, like VYVGART, I mean, really I can name multiple ones like DARZALEX, of course. We are continuing to expect to see substantial revenues from each and every one of those contributing.

Speaker #4: Thanks.

Speaker #1: Yes, thank you, Brendan. Yes, I would say that that is most likely from a partner perspective that they will become comfortable revealing what those targets are when they have to post them on clinical trials at dot gov. So very close to when the phase one clinical study starts.

Speaker #1: With regard to what's still to be done, we are really working on the clinical manufacturing at this point in time. As you heard in my prepared remarks, we are investing in the manufacturing capacity that's going to be able to allow Hail Essence to provide the end-to-end service to our hypercon partners and become an invaluable partner for everybody, just as we do today.

Helen Torley: That's not to talk about the additional launches we're going to start seeing from the current ENHANZE pipeline. A very bright future for sure. Turning now to Hypercon. In terms of the discussions, I would say one was ongoing beforehand, one was new. The company does continue in discussion with multiple other groups, including some early feasibility testing, which is a step before the companies will sometimes make a decision to move to a CLA. It doesn't always work that, some go straight to CLA. But also there's some additional targets that are now in development, testing. Define the formulation before going into clinical.

Speaker #1: And so you will see us continuing with that investment, finishing off the clinical supply manufacturing and that is exactly what will enable these phase one starts in the first half of 2027.

Yeah, thanks so much. Um, Jason. Yeah, we're very excited today to, uh, share additional color. Um, what gives us so much conviction, on the trajectory we're going to have post 2029? Uh, I, I think, um, what we shared was and I think it was probably a surprise to me, I never invested that we still have 66%, um, of the revenue from our currently 10 launch products, um, coming between 2026 and 2032. Um, there are multiple large contributors within that Jason, we haven't broken it down on an individual basis. But when you think about products, um, like, um, over this like ryber event down like VAR, I mean, really, I can name, uh, multiple ones like t x. Of course, we are continuing to uh expect to see substantial revenues um from each and every uh 1 of those contributing. And that's not to talk about the additional launches. We're going to start seeing from the current enhanced pipeline so a very bright future for sure. Um, turning out to hypercon um, in terms of the um discuss

Speaker #4: Great, thanks, Helen. And then just maybe quickly, I wanted to make sure I didn't miss it. But the conversation about 13 additional launches in 2029 plus, I guess, can you give us a sense over what timeframe you might expect those to kind of launch at fully appreciate subject to change?

Helen Torley: It doesn't always work that, some go straight to CLA. But also there's some additional targets that are now in development, testing. Define the formulation before going into clinical. I can say there's been really remarkable progress since the acquisition, both from targets and collaborations that were already underway, as well as this broadening of interest, which is just part of a secular trend I've talked a lot about. SC and IC delivery at home is really the target product profile now for so many disease conditions.

Speaker #4: But is it like 13 between 2029 and 2032 or 2035 or just kind of helping us to kind of contextualize that 13 number, if you can?

Speaker #1: Yes, I think it's futuristic to use, Brendan. It is that it is taken between four and five years. Four Enhance products to get to approval from when they enter phase one clinical testing.

I would say 1 was ongoing beforehand, 1 was new, um, and the company does continue in, uh, discussion with multiple other, um, groups including, um, some early feasibility testing, which is a step before. Uh, the companies will sometimes make a decision to move to CLA. It doesn't always work that some go straight to CLA but also there's some additional, um, targets that are now in development, um, testing. So to find the formula, uh, the formulation because

Helen Torley: I can say there's been really remarkable progress since the acquisition, both from targets and collaborations that were already underway, as well as this broadening of interest, which is just part of a secular trend I've talked a lot about. SC and IC delivery at home is really the target product profile now for so many disease conditions.

Speaker #1: And so as we're looking towards the end of 2026 for the full 13 to be in development, I'd be looking towards the 2031-32 for the latest of these, with it beginning in 2029 and occurring over that 2029 to '32 timeframe.

Before going into clinical. And so, I can say there's been really remarkable progress since the acquisition, um, both from targets and collaborations are already underway as well as this broadening of Interest, which is just part of a secular Trend. I've talked a lot about, um, SC and I see delivery at home is really the target product profile now for so many disease conditions.

Mohit Bansal: Great. Thank you.

Jason Butler: Great. Thank you.

Thank you.

Operator: Your next call comes from the line of Brendan Smith with TD Cowen. Your line is now open. Please go ahead.

Speaker #4: Got it, great. Thanks, guys.

Speaker #2: Your next question comes from the line of Mohit Bansal with Wells Fargo. Your line is now open. Please go ahead.

Brendan Smith: Great. Thanks for taking the questions, and congrats on the quarter, guys. Maybe just first, for the 2 phase I clinical starts with Hypercon assets, I think now going to be in H1 of next year. Can you help us understand, I guess, what's left to finish up there on Halozyme side from a manufacturing standpoint, get those ready to go? Can you just maybe confirm that timing to hear what those 2 programs are will still be whenever they start that phase I? Thanks.

Your next call comes from the line of Brendan Smith with TD Cowen, your line is now open, please go ahead.

Speaker #5: Great, thank you very much for taking my question and congrats on all the deals making progress here. So Helen, one question I have is, and this is the question we get a lot from investors, is that how comfortable are we with the scalability of the hypercon technology, given that it's such a unique technology and electrify did not enter into the clinics with that technology you are taking it forward?

Great. Thanks for taking the questions and congrats on the quarter guys. Um, maybe just first uh, for the 2, Phase 1, clinical starts with hypercon assets. I think now going to be in, um, first half of next year, um, can you help us? Understand, I guess what's left to finish up there on HS on side, from just the manufacturing standpoint, get those ready to go and and can you just maybe confirm that timing to hear what those 2 programs are? We'll still be whenever they start that Phase 1.

Thanks.

Helen Torley: Yes. Thank you, Brendan. Yes. I would say that that is most likely from a partner perspective, that they will be comfortable revealing what those targets are when they have to post them on ClinicalTrials.gov. Very close to when the phase I clinical study starts. With regard to what still could be done, we are really working on the clinical manufacturing at this point in time. As you heard in my prepared remarks, we are investing in the manufacturing capacity that's going to be able to allow Halozyme to provide the end-to-end service to our Hypercon partners and become an invaluable partner for everybody, just as we do today.

Yes, thank you Brandon. Yes.

Speaker #5: So wondering, how what work you have done to help understand the scalability and what your know-how with enhanced capabilities could actually be useful in terms of making it more scalable for the commercial for the clinical as well as commercial use.

Speaker #5: Thank you.

Speaker #1: Yeah, thanks, Mohit. And thanks for the comments on the deal-making. As you're seeing, our organic opportunities really are so attractive, and we can deliver such value to our shareholders.

Speaker #1: But we are very focused on resourcing them fully. And that does include our plan to invest in manufacturing capacity. So we offer an end-to-end service from the making of the drug substance to commercial fill and finish.

Helen Torley: You will see us continuing with that investment, finishing off the clinical supply manufacturing, and that is exactly what will enable these phase I starts in H1 2027.

What is most likely from a partner perspective that they will become comfortable? Um revealing what those targets are when they have to post them on clinical trials.gov. So very close to when the phase 1 clinical study um starts um with regard to what's still to be done. We are um really working on the clinical manufacturing at this point in time. Um, as you heard in my preferred remarks, we are, um, investing in the Met manufacturing capacity that's going to be able to allow Taylor's time to provide the, the end to end service to our hypercom partners and become an invaluable partner for everybody, just as we do today. Um, and so you will see us continuing with that investment, um, finishing off the clinical Supply manufacturing and that is exactly what will enable these um Phase 1 starts in the first half of 2027,

Speaker #1: Hypercon got off to a very good start of this collaborating with a strong CRMO called Thermo Fisher Pantheon. And they are the ones who did the engineering batches and are working to be able to complete the clinical batches in the first half of 2027.

Brendan Smith: Great. Thanks, Helen. Just maybe quickly, I wanted to make sure I didn't miss it. The conversation about 13 additional launches in 2029 plus, can you give us a sense over what timeframe you might expect those to kind of launch at? You know, fully appreciate subject to change, is it like 13 between 2029 and 2032 or 2035? Just kind of helping help us to kind of contextualize that 13 number, if you can.

Speaker #1: And so we are obviously very engaged. Working with the hypercon experts on the full plan now to take this into clinical and then into commercial manufacturing.

Helen Torley: Yes. I think a good heuristic to use, Brendan, is that it has taken between 4 and 5 years for ENHANZE products to get to approval from when they enter phase I clinical testing. As we're looking towards the end of 2026 for the full 13 to be in development, I'd be looking towards the 2031, 2032 for the latest of these, with it beginning in 2029 and occurring over that 2029 to 2032 timeframe.

Great. Thanks Helen. Um, and then just maybe quickly, I wanted to make sure I didn't miss it. Um, but the conversation about 13 additional launches in 2029 plus, um, I guess, can you give us a sense over what time frame, you might expect those to kind of launch at, you know, fully appreciate subject to change. But is it like 13 between 2029 and 2032 or 2035, or just kind of helping help us to kind of contextualize that 30 number you can

Speaker #1: So feeling good about the progress that we're making, Mohit, but we are at the clinical stage now, and that's why we're excited to invest and select the CDMOs who are going to take us to the next level expanding now into commercial manufacturing too.

Speaker #2: Your next question comes from the line of Dave Reisinger with Liebrink Partners. Your line is now open. Please go ahead.

Yes, I I think it due to touristic to use Brandon, it is that it is taken between 4 and 5 years 4, enhanced products to get to approval from when they entered Phase 1 clinical testing. Um, and so as we're, we're looking towards the end of 2026 for the full 13 to be in development. I'd be looking towards the 2031 32 for the latest of these uh with it, beginning in 29 and occurring over that 29 to 32 time frame.

Brendan Smith: Got it. Great. Thanks, guys.

Got it. Great. Thanks, man.

Operator: Your next question comes from the line of Mohit Bansal with Wells Fargo. Your line is now open. Please go ahead.

Speaker #3: Yes, thanks very much. And congrats, Helen, to you and your team on all the great fundamental momentum in the business. And new contracts signing.

Your next question comes from the line of Mohit Bansal with Wells Fargo. Your line is now open. Please go ahead.

Mohit Bansal: Great. Thank you very much for taking my question, and congrats on all the deal-making progress here. Helen, one question I have is, and this is a question we get a lot from investors, is that, how comfortable are we with the scalability of the Hypercon technology, given that it's such a unique technology and Elektrofi did not enter into the clinics with that technology. You are taking it forward. Wondering how, what work you have done to help understand the scalability and what your know-how with ENHANZE capabilities could actually be useful in terms of making it more scalable for the commercial for the clinical as well as commercial use. Thank you.

Speaker #3: So I have a few questions. First, could you just help us understand a few of the financial items for 2026? So what milestones are in guidance for the year and what milestones are not in guidance?

Great. Thank you very much for taking my question and congrats on all the deals making progress here. Uh, so Harlem, 1 question I have is and then this is a, this is a question, we get a lot from investors. Is that, uh, how comfortable are we with the scalability of the hypercon technology? Given that such a unique technology and Electrify

Speaker #3: Because you signed some recent deals, but you didn't guidance. And then next, a similar question for EPS guidance. When you gave the EPS guidance in February, what amount of buyback was reflected in that guidance?

Speaker #3: And how much of the 400 million that you disclosed today for 2026 is in the unchanged EPS guidance for the year? So I guess those are the financial questions.

Uh, let's try did not enter into the clinics with that. It was the you are, you are taking it forward. So wondering, how, what, what was you have done to help understand the the scalability and what, you know, how with enhanced capabilities could actually uh be useful in terms of making it more scalable for the commercial for the clinical, as well as commercial use. Thank you.

Helen Torley: Yeah. Thanks, Mohit. You know, thanks for the comments on the deal-making. As you're seeing, our organic opportunities really are so attractive, and we can deliver such value to our shareholders, that we are very focused on resourcing them fully. That does include our plan to invest in manufacturing capacity. We offer an end-to-end service from the making of the drug substance to commercial fill and finish. Hypercon got off to a very good start of this by collaborating with a strong CDMO called Thermo Fisher Patheon. They are the ones who did the engineering approval and are working to be able to complete the clinical approval in H1 2027.

Speaker #3: And then with respect to hypercon versus surf bio, I think it would be helpful if you just compare and contrast the manufacturing scale-up for both.

Speaker #3: Obviously, you're getting questions on the hypercon scale-up, but if you could compare and contrast them, I think that would be helpful. Thank you.

Speaker #1: All right, David, thank you so much. If we begin with how much of the milestone revenue was included in this year's guidance, we always based on partner communications will put whatever phase one, phase three, or any commercial milestones that are projected for the year.

Helen Torley: We are obviously very engaged, working with the Hypercon experts on the full plan now to take this into clinical and then into commercial manufacturing. Feeling good about the progress that we're making, Mohit, but we are at the clinical stage now, and that's why we're excited to invest and select the CDMOs who are going to take us to the next level, expanding now into commercial manufacturing too.

Speaker #1: So all of those that we anticipated were included. If you recall, at the end of last year, I also said that based on the three deals we signed at the end of December, I was very confident in signing multiple additional new deals in 2026.

Yeah, thanks Mo. And, um, you know, thanks for the comments on the the deal making uh, as you're seeing our organic opportunities, really are so attractive. Uh and we can deliver such value to our shareholders um that we are very focused in resourcing them fully and that um does include, um, our plan to invest in manufacturing capacity. Um, so we offer an end to end service, um, from the making of the drug substance to commercial, um, fill and finish. Um, hybrid con, get off to a very good start of this collaborating, with a strong CMO called thermofisher piece on, um, and they are the ones who did the engineering batches and are working, um, to be able to complete the clinical bet to, um, in the first half of 2027. Uh, and so, we are obviously very engaged, uh, working with the um, hypercon experts on the uh, full plan. Now to take this into clinical, um, and then into commercial manufacturing. So, um, feeling good about the progress that we're making Mohit, but, um, we are at the clinical stage now, and

Speaker #1: And so we do have a very nice number in our 2026 guidance for new milestones coming from new collaborations. And so we put that in because we obviously wanted our guidance to reflect our true view of how the year was going to perform.

That's why we're excited to invest and um select the um CTO motor. Going to take us to the next level. Um expanding now into uh commercial manufacturing too.

Operator: Your next question comes from the line of David Risinger with Leerink Partners. Your line is now open. Please go ahead.

Speaker #1: So we have included all of the projectable milestones for the year, including a certain amount of money for new deal milestones at this time.

Go ahead.

David Risinger: Yes. Thanks very much. Congrats, Helen, to you and your team, on all the great, fundamental momentum in the business and new contract signing. I have a few questions. First, could you just help us understand a few of the financial items for 2026? What milestones are in guidance for the year and what milestones are not in guidance? Because you signed some recent deals, but you didn't update your revenue guidance. Next, a similar question for EPS guidance. When you gave the EPS guidance in February, what amount of buyback was reflected in that guidance? How much of the $400 million that you disclosed today for 2026 is in the unchanged EPS guidance for the year? I guess those are the financial questions.

Speaker #1: Let me ask David just to summarize the buyback impact on our EPS guidance.

Speaker #4: Yeah, hi, David. So in our earlier guidance this year, obviously, we did not make any assumptions for levels of buyback. And also today, in the guidance that we're we are reiterating, it does not include any potential impact from the share repurchases that we will do this year.

Yes. Thanks very much and uh, congrats Helen to you, you and your team, uh, on all the great, uh, fundamental momentum, uh, in the business and, uh, and new contract signing. So I have a few questions first.

Could you just uh help us understand uh a few of the financial items.

Speaker #4: So we'll update that as the year progresses, obviously.

Speaker #1: Yep, thank you, David. And then the third question, just as in what are the differences in the manufacturing between hypercon and surf bio? First difference would be surf bio is 18 to 24 months earlier in development than hypercon.

David Risinger: When you gave the EPS guidance in February, what amount of buyback was reflected in that guidance? How much of the $400 million that you disclosed today for 2026 is in the unchanged EPS guidance for the year? I guess those are the financial questions. With respect to Hypercon versus Surf Bio, I think it would be helpful if you just compare and contrast the manufacturing scale-up for both. Obviously, you're getting questions on the Hypercon scale-up, but if you could compare and contrast them, I think that would be helpful. Thank you.

Speaker #1: So we are working very hard at the moment in advancing our non-clinical excipient qualification, beginning to plan for our GMP manufacturing. And our spray-dry readiness.

Uh, for 2026. So what Milestones are in guidance for the year and what Milestones are not in guidance? Because you signed some recent deals, but you didn't update your Revenue guidance. Uh, and then next, uh, similar question for EPS guidance. When you gave the EPS guidance in February, what amount of buyback,

Was reflected in that guidance.

Speaker #1: Now, in terms of the types of manufacturing, both are novel processes. The surf bio relies on spray drying, which is actually a very commonly used type of manufacturing.

David Risinger: With respect to Hypercon versus Surf Bio, I think it would be helpful if you just compare and contrast the manufacturing scale-up for both. Obviously, you're getting questions on the Hypercon scale-up, but if you could compare and contrast them, I think that would be helpful. Thank you.

Speaker #1: And for hypercon, it is a novel process that relies on dehydration. To result in innovative microparticles that can then be injected with the help of being in a solvent.

Helen Torley: All right, David, thank you so much. If we begin with how much of the milestone revenue was included in this year's guidance, we always base on partner communications, we will put whatever phase I, phase III, or any commercial milestones that are projected for the year. All of those that we anticipated were included. If you recall, at the end of last year, I also said that based on the three deals we signed in December, I was very confident in signing multiple additional new deals in 2026. We did have a very nice number in our 2026 guidance for new milestones coming from new collaborations.

And, uh, how much of the $400 million that you disclosed today for 2026 is in the unchanged EPS guidance for the year? So I guess those are the financial questions. And then, with respect to HyQvia versus Surf Bio, I think it would be helpful if you could just compare and contrast the manufacturing scale-up for both. Obviously, you're getting questions on the HyQvia scale-up, but if you could compare and contrast them, I think that would be helpful. Thank you.

Speaker #1: And so different processes, different stages of development, but we're very excited, particularly seeing the degree of interest we're getting from potential partners for the hyperconcentration technologies to have made substantial progress on surf bio as well as hypercon in the quarter.

Speaker #1: And we look forward to providing further updates throughout the year as we're advancing both of these innovative hyperconcentration technologies.

Helen Torley: We did have a very nice number in our 2026 guidance for new milestones coming from new collaborations. We put that in because we obviously wanted our guidance to reflect our true view of how the year was going to perform. We have included all of the predictable milestones for the year, including a certain amount of money for new deal milestones at this time. Let me ask David just to summarize the buyback impact on our EPS guidance.

Speaker #3: Thank you.

Speaker #1: Thanks, David.

Speaker #2: Your next question comes from the line of Sean Lahman with Morgan Stanley. Your line is now open. Please go ahead.

Helen Torley: We put that in because we obviously wanted our guidance to reflect our true view of how the year was going to perform. We have included all of the predictable milestones for the year, including a certain amount of money for new deal milestones at this time. Let me ask David just to summarize the buyback impact on our EPS guidance.

Speaker #6: Good afternoon, Helen, and team. Hope everyone's well. Helen, on the 13 enhanced products that are due for launch a bit later, what royalty rates can you can we expect?

Speaker #6: And even just to ballpark, and just to walk us through the IP position at that point would be super helpful. And then any comment that you can provide us on competing hyaluronidase technologies out there recently and Dupixent?

All right. David thank you so much. Um, if we begin with how much um, um, of Milestone Revenue was included in this year's guidance. Um, we always based on Partner Communications, um, we'll put whatever Phase 1 phase 3 or any commercial Milestones that are projected for the year. So all of those that we anticipated were included. Um, if you recall at the end of last year, I also said that based on the 3 deals, we signed at the in December, I was very confident in signing multiple additional new deals in 2026. And so we do have, um, a, a very nice number in our 2026 guidance for new Milestones coming from new collaborations. And so, um, we we put that in because we obviously wanted to our guidance to reflect our true, uh, view of how the year was going to, uh, perform. So, um, we have included all of the projectable, um, milestones for the year, including, um, a certain amount of money for New Deal milestones at this time. Um, let me ask

David Ramsay: Yeah. Hi, David. You know, in our earlier guidance this year, obviously we did not make any assumptions for levels of buyback. Also today, in the guidance that we are reiterating, it does not include any potential impact from the share repurchases that we will do this year. We'll update that as the year progresses, obviously.

David just to summarize, um, the the buyback impact on our APS guidance.

Speaker #6: Thanks, Helen.

Speaker #1: Okay, let me start with the 13 products that have the potential to be launching in 2029 plus. If you recall, with our contracts, we have historically been in the mid-single digit range.

Helen Torley: Yeah. Thank you, David. The third question just is on what are the differences in the manufacturing between Hypercon and Surf Bio? First difference would be Surf Bio is 18 to 24 months earlier in development than Hypercon. We are working very hard at the moment in advancing our non-clinical excipient qualification, beginning to plan for our GMP manufacturing and our spray dry readiness. Now, in terms of the types of manufacturing, both are novel processes. The Surf Bio relies on spray drying, which is actually a very commonly used type of manufacturing. For Hypercon, it is a novel process that relies on dehydration to result in innovative microparticles that can then be injected with the help of being in a solvent.

Yeah. Hi David. Um, so you know, in our earlier, guidance this year, obviously we did not, um, uh, make any assumptions for levels of buyback. And and also today, you know, the guidance that we're we are reiterating, it does not include any potential uh, impact from the share repurchases that we will do this year. So we'll update that as the year progresses. Obviously.

Speaker #1: And I'm very pleased to say that for the current contract, we also are in that potential for a mid-single digit royalty with some of the newer contracts starting at a single digit royalty, but escalating with increasing sales into that mid-single digit royalty.

Speaker #1: So we're still feel very great about the strength of the royalties with these multiple new royalty streams all of which have the potential to be getting into that mid-single digit royalty place.

Speaker #1: With regard to IP at that point, for all of these products, they will retain the potential to be able to get core formulation IP.

Speaker #1: The base composition of matter patents will expire in 2029. In the US and in Europe, however, the power of our business model that is sometimes underestimated is the power of getting core formulation patents.

Helen Torley: Different processes, different stages of development. We are very excited, particularly seeing the degree of interest we are getting from potential partners for the hyperconcentration technologies, to have made substantial progress on Surf Bio as well as Hypercon in the quarter. We look forward to providing further updates throughout the year as we are advancing both of these innovative hyperconcentration technologies.

Yep. Thank you, David. And then, the third question just is. What are the differences? Um, in the manufacturer between, um, hypercon, and surf, bio, um, first difference would be surf. Bio is, um, 18 to 24 months earlier in development, um, than hypercon. So, we are working very hard at the moment. In advancing, our non-clinical exception qualification, beginning to plan for our GMP manufacturing and our, um, spray dry Readiness. Now, in terms of the, the types of manufacturing, um, both are novel processes, um, the surf, bio relies on, um, spray drying, which is actually a very commonly used type of manufacturing. Um, and for hypercon, it is a novel process that, um, relies on dehydration to result, in Innovative, uh, micro particles, um, that um, can then be um, uh, injected with the help of, uh, being in a solvent and so, um, different processes different stages of development. Uh, but

Speaker #1: And the reason that is so important is in the majority of our content tracks, that will extend our royalty term. From what is common in all of our contracts to be a minimum of 10 years.

Speaker #1: To additional years up to and including for the full royalty term of the core form patent, which is 20 years from filing. So think of these core form patents as keeping our royalties progressing for many years after that initial 10 years and a number of cases.

We're very excited, particularly seeing the degree of Interest we're getting from, um, potential partners for um, the hyper concentration Technologies. Um, to have made substantial progress on surf, bio as well as hypercon, um, in the quarter. And we look forward to providing further updates um, throughout the year as we're advancing both of these Innovative, hyper concentration Technologies,

David Risinger: Thank you.

Helen Torley: Thanks, David.

Thank you.

Operator: Your next question comes from the line of Sean Laaman with Morgan Stanley. Your line is now open. Please go ahead.

Thanks.

Speaker #1: And accompanying that in a number of these cases, the royalties can also be maintained at the original royalty rate. And so the IP position in summary, Sean, is strong.

Sean Laaman: Good afternoon, Helen and team. Hope everyone's well. Helen, on the 13 ENHANZE products that are due for launch a bit later, you know, what royalty rates can you, can we expect and/or, you know, even just to ballpark and just to walk us through the IP position at that point would be super helpful. Any comment that you can provide us on, you know, competing hyaluronidase, you know, technologies out there, re Sanofi and DUPIXENT. Thanks, Helen.

Your next question comes from the line of Shaun Lehman with Morgan Stanley. Your line is now open. Please go ahead.

Speaker #1: It's strong because of our unique core formulation patent business model leading to that revenue durability and in many cases maintaining the royalty rate at the original level.

Speaker #1: With regard to complementary hyaluronidases and specifically asking about Sanofi, we really can't comment. We're not 100% aware of exactly what Sanofi is doing with regard to a complementary hyaluronidase.

You know what, what role he rates can you uh can we expect and or you know, even just to Ballpark and and just to to walk us through the IP position at that point would be uh super helpful. And then any comment that you can provide us on, you know, competing hybrid days, you know, Technologies out there, you know, uh Reese Sophie and and Dixon. Thanks Helen.

Speaker #1: I can say in general, that for all of the partners who are companies who have chosen to work with Altergen as an example, they have come to us first.

Helen Torley: Okay. Let me start with the 13 products that have the potential to be launching in 2029 plus. If you recall with our contracts, we have historically been in the mid-single digit range, and I am very pleased to say that for the current contract, we also are in that potential for a mid-single digit royalty with some of the newer contracts starting at a single digit royalty, but escalating with increasing sales into that mid-single digit royalty. We still feel very great about the strength of the royalties with these multiple new royalty streams, all of which have the potential to be getting into that mid-single digit royalty place.

Speaker #1: We have got an exclusive license already in place, unfortunately, that precludes us from being able to work with them. And you might say, why do all these companies still come to Halozyme first?

Speaker #1: It is because of our we are the gold standard in hands has got now more than 1.3 million patients treated. And very importantly, our expertise is so acknowledged now in the community in terms of our understanding how to get partners into the clinic quickly and through development quickly because of all the expertise that we have gained.

Okay, um, let me start with the 13 uh, products that have the potential um to be launching in 2020 name plus. Um, if you're a call with our our contract, um, we have historically, um, been in the, um, Mid single digit range. And I'm very pleased to see that for the current contract. Um, we also are in that, um, um, potential for Aid. Single digit royalty, with some of the newer contracts starting at a single digit royalty, but escalating with increasing sales into that mid single digit royalty. So, we still, um, uh, feel very, um,

Speaker #1: And so we continue to expect to, as we've demonstrated so ably in the last five months or so, with the signing of four new enhanced deals, continue to expect more enhanced deals this year just based on the strong interest and our leadership position in this space.

Helen Torley: With regard to IP at that point, for all of these products, they will retain the potential to be able to get co-formulation IP. The base composition of matter patents will expire in 2029 in the US and in Europe. However, the power of our business model that is sometimes underestimated is the power of getting co-formulation patents. The reason that is so important is in the majority of our content trials. That will extend our royalty term from what is common in all of our contracts to be a minimum of 10 years, to additional years up to and including for the full royalty term of the co-form patent, which is 20 years from filing.

Create about the, um, strength of the royalties, but these multiple new royalty streams. Um, all of which have the potential to be getting into that, um, Mid single digit royalty. Um, um, place, um, with regard to IP at that point, um,

Speaker #6: Thank you, Helen.

Speaker #2: Your next question comes from the line of Corinne Johnson with Goldman Sachs. Your line is now open. Please go ahead.

Speaker #5: Thanks and good afternoon. Maybe you could just kind of spend some time walking us through the development timelines after you get into phase one with hypercon, I guess early next year now.

Speaker #5: And sort of how do you kind of get to the potential approval then in a three to four year timeline from there? Thanks.

Helen Torley: Think of these co-form patents as keeping our royalties progressing for many years after that initial 10 years in a number of cases. Accompanying that in a number of these cases, the royalties can also be maintained at the original royalty rate. The IP position in summary, Sean, it is strong. It's strong because of our unique co-formulation patent business model leading to that revenue durability, and in many cases, maintaining the royalty rate at the original level. With regard to complementary hyaluronidases and specifically asking about Sanofi, we really can't comment. We're not 100% aware of exactly what Sanofi is doing with regard to a complementary hyaluronidase.

Speaker #1: Yes, thanks, Corinne. It's our expectation that because many of our partners are considering an already subcu drug, moving to a lower volume subcu drug, that the pathway will be based on comparability of the PK between the two subcu that is a very common approach that partners are using.

For all of these products, they will retain the potential to be able to get core formulation of Ip. Um, the base composition of matter, package will expire in 2029, um, in the US and in Europe. Um, however, the power of our business model that is sometimes underestimated is the part of getting co-formulation patterns and the reason that is so important, um, is in the majority of our contracts that will extend our royalty term from what is common in all of our contracts, to be a minimum of 10 years um to um additional years up to and including for the full royalty term of the core form pattern, which is 20 years from filing. So, think of these core form patterns as as keeping, our royalties progressing for many years, after that it, uh, initial 10 years, and a number of cases and accompanying that in a number of these cases, the royalties can also be maintained at the original royalty rate. Um, and so they have to be positioned in summary, Sean, it is strong. Um, it's strong.

Speaker #1: We are seeing that with our enhanced experience with recent examples, the FDA expectations for the endpoints of those studies as well as the duration and size of those studies is shrinking.

Strong strong because of our unique. Um Co formulation, uh patent business model, leading to that Revenue durability and in many cases maintaining the royalty rate at the, um, original level.

Speaker #1: And that I think is in part largely due to the comfort level with the great safety database that now is available for enhanced. And it is really that direct experience we have from enhanced as to how studies are being done now to make them go faster.

Helen Torley: I can say in general that for all of the partners, who are companies who have chosen to work with Alnylam as an example, they have come to us first. We have got an exclusive license already in place, unfortunately, that precludes us from being able to work with them. You might say, you know, "Why do all these companies still come to Halozyme first?" It is because of our We are the gold standard. ENHANZE has got now more than 1.3 million patients treated. Very importantly, our expertise is so acknowledged now in the community in terms of our understanding how to get partners into the clinic quickly and through development quickly because of all the expertise that we have gained.

Speaker #1: And have less patient exposure, Corinne, is what gives us a lot of confidence in the three to four years. And that's further informed with some early conversations that partners that are having with the FDA who seem to be very much in support with that type of thinking.

Helen Torley: ENHANZE has got now more than 1.3 million patients treated. Very importantly, our expertise is so acknowledged now in the community in terms of our understanding how to get partners into the clinic quickly and through development quickly because of all the expertise that we have gained. We continue to expect, as we've demonstrated so ably in the last 5 months or so, with the signing of 4 new ENHANZE deals, more ENHANZE deals this year just based on the strong interest and our leadership position in this space.

Speaker #5: Great, thanks. And it does seem like you've had a lot of early success in terms of getting new partnerships for hypercon. Maybe you could just kind of talk about where you're or what's resonating as you bring that profile to potential partners.

Speaker #1: Yeah, we talked about this when we did the acquisition. Companies have an idea in their head of what they think is going to be.

Helen Torley: We continue to expect, as we've demonstrated so ably in the last 5 months or so, with the signing of 4 new ENHANZE deals, more ENHANZE deals this year just based on the strong interest and our leadership position in this space.

Um, with regard to, um, complimentary hyaluronidase and, and specifically asking about Sy. Um, we really can't comment, we're not 100% aware of exactly what Sy, um, is doing, uh, with regard to a complimentary hyaluronidase. I can say in general that for all of the partners, um, who are companies who have chosen to work with, um, altigen as an example. Um, they have come to us. First, we have got an exclusive license already in place, unfortunately, that precludes us from being able to work, um, with them. Uh, and you might say, you know, why do all these companies still come to Halo design first? Uh, it is because of our, we are the gold standard in hands, has got now more than 1.3 million patients treated and very importantly, our expertise is so acknowledged. Now in the community, in terms of our understanding, how to get partners into the clinic quickly and through development quickly, because of all the expertise that we have gained. Um, and so we continue.

Speaker #1: They must competitive target product profile for their product. If they are coming into an area as an example, like psoriasis, they recognize that extended dosing is just the norm now.

To expect to, as we've demonstrated. So, Aly, in the last five months or so, with the planning of four new enhanced deals, we continue to expect more enhanced deals this year just based on the strong interest and our leadership position in the space.

Sean Laaman: Thank you, Helen.

Thank you, Helen.

Operator: Your next question comes from the line of Corinne Johnson with Goldman Sachs. Your line is now open. Please go ahead.

Speaker #1: And to be competitive, they're going to have to get extended dosing. Now, there might be and I will also add that extended dosing ideally should be able to be delivered by the patient themselves because that's where the standard of care is.

Your next question comes from the line of Kareem Johnson with Goldman Sachs.

Your line is now open. Please go ahead.

Corinne Johnson: Thanks, and good afternoon. Maybe you could just kind of spend some time walking us through the development timelines after you get into phase I with Hypercon, I guess, early next year now. Sort of how do you kind of get to the potential approval then in a 3 to 4-year timeline from there? Thanks.

Speaker #1: And so because companies have that mindset and know what is going to be the most competitive profile, that is what is bringing them to us.

Speaker #1: And I've always said it's areas like inflammation and immunology, nephrology, cardiovascular. The areas where there is a lot of patient freedom, a lot of desire by the patients to be able to treat themselves, we are a terrific fit for that because we're able to hyperconcentrate many antibodies down into this 2 mLs allowing it to be given by a simple off-the-shelf auto injector.

Thanks, and good afternoon. Um, maybe you could just kind of spend some time walking us through the development timelines after you get into Phase 1 with Hypercon, I guess early next year now. Um, and sort of, how do you kind of get to the potential approval then in a three to four year timeline from there? Thanks.

Helen Torley: Yes. Thanks, Corinne. It's our expectation that because many of our partners are considering an already subQ drug, moving to a lower volume subQ drug, that the pathway will be based on comparability of the PK between the two subQ formulations, and I'll start with that as that is a very common approach that partners are using. We are seeing that with our ENHANZE experience with recent examples, the FDA expectations for the endpoints of those studies, as well as the duration and size of those studies, is shrinking. And that I think is in part largely due to the comfort level with the great safety database that now is available for ENHANZE.

Yes, thanks Karen. Um,

Speaker #1: And so we're just a great fit a perfect fit actually with hypercon and SurfBio for where the market is going for those types of conditions.

Speaker #1: So that the products can be competitive and so that the companies can meet the patient expectations for care.

Speaker #5: Thanks.

Speaker #2: Your next question comes from the line of Jessica Fai with JP Morgan. Your line is now open. Please go ahead.

Speaker #7: Hey guys, good afternoon. Thanks so much for taking my questions. I had a few more on hypercon. So you mentioned that some companies conduct early feasibility testing prior to signing hypercon deals.

Helen Torley: It is really that direct experience we have from ENHANZE as to how studies are being done now to make them go faster and have less patient exposure, Corinne, is what gives us a lot of confidence in the three to four years. That's further informed with some early conversations that partners are having with the FDA, who seem to be very much in support with that type of that type of thinking.

Speaker #7: Can you say whether Vertex or Aruka, who you recently signed deals with, did they conduct any early feasibility testing? Second, as hypercon deals roll in, how should we think about the timelines from when a hypercon deal is announced to when the product with that partner could enter the clinic?

Speaker #7: And then last one, I'm just curious on how you think about how big a deal or how big a de-risking event would you view IND clearance for a hypercon product relative to, say, phase one data?

Corinne Johnson: Interesting. It does seem like you've had, you know, a lot of early success in terms of getting new partnerships for Hypercon. Maybe you could just kind of talk about what's resonating as you bring that profile to potential partners.

Are in hands experience with recent examples, the FDA expectations for the endpoints of those studies, as well as the duration and size of those studies is shrinking. Um, and that I think is in part largely due to the Comfort level with the great safety database. That now is available for enhanced and it is really that a direct experience. We have from enhanced as to how um studies are being done now um to make them go faster and have less patient exposure care in is what gives us a lot of confidence um in the 3 to 4 years and that's further informed with some early conversations that partners that are having with the FDA um who seem to be very much in support with that type of um that type of thinking.

Speaker #7: Thank you.

Great thing and it does seem like you've had, you know, a lot of early success in terms of getting new Partnerships for hyperfine. Maybe you could just kind of talk about where your or what resonating as you bring that profile to Central partners.

Helen Torley: You know, we talked about this when we did the acquisition. Companies have an idea in their head of what they think is going to be the most competitive target product profile for their product. If they are coming into an area as an example like psoriasis, they recognize that extended dosing is just the norm now, and to be competitive, they're going to have to get extended dosing. Now, there might be, and I will also add that that extended dosing ideally should be able to be delivered by the patient themselves because that's where the standard of care is. Because companies have that mindset and know what is going to be the most competitive profile, that is what is bringing them to us.

Speaker #1: Thanks, Jess, for that. We aren't able to go into more detail on the individual collaborations and whether or not they did feasibility testing. That would be considered the partner confidential.

Speaker #1: So can't talk about that. I would say, though, the trend we have now is the partners are going straight into the agreement based on the data that they are seeing.

Speaker #1: And they're confident in moving forward. So as you might expect with the maturing of the technology, that's a very nice trend that we are certainly seeing.

Yeah, you know, we we, we talked about this, when we did the acquisition, um, companies have an idea in their head of what, what they think is going to be the most competitive Target product profile for their product. Um, if they are coming into an area, as an example, like psoriasis, um they recognize that extended dozing is just the norm now and to be competitive they're going to have to get extended dozing. Now there might be uh and I will also add that that extended dozing ideally, should be able to be delivered by the patient themselves.

Speaker #1: In terms of the timing from when the hypercon deal is announced, to being in the clinic, that is something that is going to get shorter and shorter as we again have been evolving the technology developing the technology.

Helen Torley: I've always said it's areas like inflammation and immunology, nephrology, cardiovascular, the areas where there's a lot of patient freedom, a lot of desire by the patient to be able to treat themselves, we are a terrific fit for that because we're able to hyper concentrate many antibodies down into this 2 mL, allowing it to be given by a simple off-the-shelf auto-injector. We're just a great fit, a perfect fit actually, with Hypercon and Surf Bio, for where the market is going for those types of conditions, so that the products can be competitive and so that the companies can meet the patient expectations for care.

Speaker #1: And so it's a little premature for me to give a specific number of months at the moment. But know that that is something that is going to be a big focus for us to be able to rapidly support partners in getting into the clinic in a matter of months based on just the process that is evolving from even the time when we did the acquisition just a couple of quarters ago.

Speaker #1: I would say the I'm looking forward to the phase one data. We've got some of the preclinical data that obviously gave us a lot of confidence and conviction in the acquisition.

Corinne Johnson: Thanks.

Because that's where the standard of care is, uh, and so because companies have that mindset and and know what is going to be the most competitive profile. Um, that is what is bringing them to, um, us. And I, I've always said it's areas like inflammation and Immunology Nephrology cardiovascular, um, the areas where, uh, there's a lot of, um, patient Freedom. A lot of Desire by the patience to be able to treat themselves. Um, we are a terrific fit for that because we're able to hyper concentrate, many antibodies down into this 2 ml. Um, allowing it to be given by a simple off-the-shelf auto injector. And so we're just a great fit um a perfect fit actually with Hyper gun and surf bio um, for where the market is going for those types of conditions. Um, so that the products can be competitive and so that the uh, companies can meet the patient expectations for care.

Operator: Your next question comes from the line of Jessica Fye with JPMorgan. Your line is now open. Please go ahead.

Speaker #1: But I would say that the phase one data is what I'm excited to see for each of these new partners.

Jessica Fye [Managing Director, Equity Research Analyst: Hey, guys. Good afternoon. Thanks so much for taking my questions. I had a few more on Hypercon. You mentioned that some companies conduct early feasibility testing prior to signing Hypercon deals. Can you say whether Vertex or Oruka, who you recently signed deals with, did they conduct any early feasibility testing? The second, as Hypercon deals roll in, how should we think about the timelines from when a Hypercon deal is announced to when the product with that partner could enter the clinic? Last one, just curious on how you think about, like, how big a deal or, like, how big a de-risking event would you view IND clearance for a Hypercon product relative to, say, phase I data? Thank you.

Jessica Fye: Hey, guys. Good afternoon. Thanks so much for taking my questions. I had a few more on Hypercon. You mentioned that some companies conduct early feasibility testing prior to signing Hypercon deals. Can you say whether Vertex or Oruka, who you recently signed deals with, did they conduct any early feasibility testing? The second, as Hypercon deals roll in, how should we think about the timelines from when a Hypercon deal is announced to when the product with that partner could enter the clinic? Last one, just curious on how you think about, like, how big a deal or, like, how big a de-risking event would you view IND clearance for a Hypercon product relative to, say, phase I data? Thank you.

Your next question comes from the line of Jessica fee with JP Morgan. Your line is now open. Please go ahead.

Speaker #5: Thank you.

Speaker #2: As a reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Ahmed Mahmoud with HC Wainwright.

Hey guys. Good afternoon. Thanks so much for taking my questions. I had a few more on hypercon. Uh, so you mentioned that some companies conduct early feasibility, testing prior to signing hyperclean deals. Can you say whether Vertex or or Ruka who you recently signed deals with? Did they conduct any early feasibility? Testing.

Speaker #2: Your line is now open. Please go ahead.

The second is hypercon deals role in. How should we think about the timelines for when a hypercon deal is announced.

Speaker #8: Hi, this is Madam Ahn for Mitchell Kapoor at HC. Thank you for taking the question. I was wondering as Hale continues to have partnerships and accumulate additional approvals, validating the enhanced platform, how does the economics of the new licensing deals evolve?

To when the product with that partner could enter the clinic.

And then, last one—I’m just curious on how you think about, like, how big a deal or, like, how big a de-risking event would you view IND clearance for a Hypercon product, relative to the SAfE-SPACE 1 data?

Thank you.

Speaker #8: Are you seeing more leverage? Should we expect a trend toward the higher end of the single digit range?

Helen Torley: Thanks, Jess, for that. You know, we aren't able to go into more detail on individual collaborations and whether or not they did feasibility testing. That would be considered their partner confidential, can't talk about that. I would say, though, the trend we have now is the partners are going straight into the agreement based on the data that they are seeing and their confidence in moving forward. Yeah, as you might expect with the maturing of the technology, that's a very nice trend that we are certainly seeing.

Speaker #1: Yeah, Ahmed, let me talk about the hypercon types of deals, which obviously is an exciting new technology. The deal terms have been very consistent across what are now five agreements, which cover up to 17 targets.

Speaker #1: Those are upfront milestones, milestones for progress and development and with sales, and mid-single digit royalties. And that has been very consistent. Very reminiscent of enhanced as we were establishing that technology and obviously what it's resulting in the very attractive performance we have today at Halozyme.

Helen Torley: In terms of the timing from when the Hypercon deal is announced to be in the clinic, you know, that is something that is going to get shorter and shorter as we again have been evolving the technology, developing the technology. It's a little premature for me to give a specific number of months at the moment. Know that that is something that is going to be a big focus for us to be able to rapidly support partners in getting into the clinic in a matter of months, based on just the process as that is evolving from even the time when we did the acquisition just a couple of quarters ago. I would say, You know, I am looking forward to the phase I data. We've got some of the preclinical data that obviously gave us a lot of confidence and conviction in the acquisition. I would say that the phase I data is what I am excited to see for each of these new partners.

Speaker #1: For enhanced, we see a trend, a different trend with an exclusive and non-exclusive agreements, just as a little bit of a range as it relates to that gives different numbers for the peak milestones and also the royalty rates.

Speaker #1: But as I mentioned earlier, in all of our enhanced agreements as well, we see the potential based on escalating sales to get to the mid-single digit royalty in each of those as well.

Um, thanks. Yes, for that. You know, we, we are unable to give more detail on individual, um, collaborations and, um, whether, um, or not, they, they did feasibility testing. That, that we'd, uh, that would be considered their partner confidential. So can't talk about that. I would say though, um, the trend that we have now is the partners are going straight, um, into, um, the agreement based on the data that they are seeing, um, and their confidence in moving forward. So, um, yeah, as you might expect with the maturing of the technology, um, that's a very nice trend that we are certainly, um, seeing, um, in terms of the timing from when, um, the HyperClone deal is announced, um, to be in the clinic. Um, you know, that is, is something that is going to get shorter and shorter. Um, as we, uh, again have been, um, evolving the technology, developing the technology and so, uh, it's a little premature for me to give a specific, um, um, number of months, um, at the moment. Um, but, um, know that that is something that is—

Helen Torley: I would say, You know, I am looking forward to the phase I data. We've got some of the preclinical data that obviously gave us a lot of confidence and conviction in the acquisition. I would say that the phase I data is what I am excited to see for each of these new partners.

Is going to be, um, a big Focus for us to be able to rapidly support Partners in in getting into the clinic in a matter of months, um, based on uh just the process as that is evolving from. Um, even even the time um when we did the acquisition, just a couple of quarters ago

Speaker #2: Please hold while we compile the Q&A roster. Your next question comes from the line of Michael DiFiore with Evercore ICI. ISI. Your line is now open.

Speaker #2: Please go ahead.

1 data. Um, we we've got, um, some the of the pre-clinical data that obviously gave us a lot of confidence and conviction in the acquisition. Uh, but I would say that the phase 1 data is, is what I am excited to see for each of these new partners.

Speaker #9: Hi guys. Thanks so much for taking my question and congrats on all the continued progress. Two questions for me. Regarding your antibody drug conjugate, your ADCIP names a broad set of specific drugs that seems from across pharma pipelines.

Jessica Fye [Managing Director, Equity Research Analyst: Thank you.

Jessica Fye: Thank you.

Thank you.

Operator: As a reminder, if you would like to ask a question, please press star one to raise your hand. Your next question comes from the line of Ahmed Mahmud with H.C. Wainwright. Your line is now open. Please go ahead.

As a reminder, if you would like to ask a question, please press star 1 to raise your hand.

Speaker #9: Is that package itself driving partner engagement or are the discussions still largely target specific? And my follow-up is regarding nucleic acids. I mean, you mentioned ADCs in detail, but in terms of nucleic acids, is partner interest there at a similar stage or is just ADC the more advanced near-term modality?

Your next question comes from the line of Ahmed Mahmoud with HC, Wayne Wright. Your line is now open. Please go ahead.

Ahmed Mahmud: Hi, this is Ahmed. I'm on for Mitchell Kapoor at H.C. Thank you for taking the question. I was wondering, as Halozyme continues to have partnerships and accumulate additional approvals, validating the ENHANZE platform, have the economics of the new licensing deals evolved? Are you seeing more leverage? Should we expect a trend toward the higher end of the single-digit range?

[Analyst] (H.C. Wainwright): Hi, this is Ahmed. I'm on for Mitchell Kapoor at H.C. Thank you for taking the question. I was wondering, as Halozyme continues to have partnerships and accumulate additional approvals, validating the ENHANZE platform, have the economics of the new licensing deals evolved? Are you seeing more leverage? Should we expect a trend toward the higher end of the single-digit range?

Hi. This is Amanda on for Mitchell, Kapoor HC.

Speaker #9: Thank you.

Speaker #1: Yeah, thanks, Mike. With regard to the ADCs, I would say that we are engaged with several pharma and biotech companies. And it is based on a specific set of products they have in development or have commercialized.

Uh, thank you for taking the question. I was wondering, uh, as Halozyme continues to have partnerships and accumulate additional approvals, uh, validating the enhanced platform, has the economics of the new licensing deals evolved? Are you seeing more leverage? Uh, should we expect a trend toward the higher end, uh, of the single-digit, uh, range?

Helen Torley: Yeah. You know, Ahmed Mahmud, let me talk about the Hypercon types of deals, which obviously is an exciting new technology. The deal terms have been very consistent across what are now 5 agreements that which cover up to 17 targets. Those are upfront milestones for progress and development and with sales and mid-single-digit royalties. That has been very consistent, very reminiscent of ENHANZE, as we were establishing that technology and obviously, what is resulting in the very attractive performance we have today at Halozyme. For ENHANZE, we see a trend, a different trend with exclusive and non-exclusive agreements, just as a little bit of a range, as it relates to that, but gives different numbers for the peak milestones and also the royalty rates.

Speaker #1: So it's very much on a company-by-company brand-by-brand basis. What's driving the interest is the potential to optimize the target product profile to get it improved benefit risk profile.

Speaker #1: And obviously, we have filed for a number of patents which, of course, is covered in the discussions with the partners as well. But it really is this ideal to get the optimal profile that is driving this on a product-by-product basis.

Yeah, um, you know what, let me talk about, um, the Hypercon, um, types of, uh, deals, which obviously is an exciting new technology. Um, the deal terms have been very consistent across what are now five, um, agreements, which cover up to 17 targets. Um, those are upfront, um, milestones—milestones for progress and development, and with sales, and mid single-digit royalties. Um, and that, that

Helen Torley: For ENHANZE, we see a trend, a different trend with exclusive and non-exclusive agreements, just as a little bit of a range, as it relates to that, but gives different numbers for the peak milestones and also the royalty rates. As I mentioned earlier, in all of our ENHANZE agreements as well, we see the potential, based on escalating sales to get to the mid-single-digit royalty, in each of those as well.

Speaker #1: The nucleic acid discussions are actually occurring in parallel. Again, we have generated compelling non-clinical data that is being discussed across several companies at this point in time.

Helen Torley: As I mentioned earlier, in all of our ENHANZE agreements as well, we see the potential, based on escalating sales to get to the mid-single-digit royalty, in each of those as well.

Speaker #1: And I look forward to those progressing and sometime in the next months and quarters being able to announce a deal there as well. ADCs got out of the gate faster, but that doesn't mean to say that nucleic acids aren't coming sometime in the next quarters too.

Has been very consistent, very reminiscent of in hands. Um, as we were establishing that um, technology and obviously, uh, what is resulting in the very attractive performance, we have today at Haley's um, for enhance. Um, we see a trend a different Trend with it exclusive and non-exclusive agreements just as a little bit of a range, um, as it relates to that that, um, gives different numbers for the, uh, the peak milestones and also the royalty rates. But as I mentioned earlier, um, in all of our enhanced agreements as well, um, we see the potential uh based on um escalating sales to get to the mid single digit royalty and in each of those, as well.

Speaker #9: I see. Thank you.

Operator: Please hold while we compile the Q&A roster. Your next question comes from the line of Michael DiFiore with Evercore ISI. Your line is now open. Please go ahead.

Please hold while we compile the Q&A roster.

Your next question comes from the line of Michael Dior with Evercore ISI. Your line is now open. Please go ahead.

Michael DiFiore: Hi, guys. Thanks so much for taking my question, and congrats on all the continued progress. Two questions from me. Regarding your antibody drug conjugates, your ADC IP names a broad set of specific drug it seems from across pharma pipelines. Is that package itself driving partner engagement or are the discussions still largely target specific? My follow-up is, you know, regarding nucleic acids. I mean, you mentioned ADCs in detail, but in terms of nucleic acids, is partner interest there at a similar stage, or is just ADC the more advanced near-term modality? Thank you.

Hi guys, thanks so much for taking my question, and congrats on all the continued progress. Uh, two questions for me regarding your antibody drug conjugates. Um, your ADC IP names are a broad set of specific drugs that seem from, uh, across pharma pipelines,

Is that package itself driving partner engagement, or are the discussions still largely Target-specific?

And my follow-up is, um, you know, uh, regarding nucleic acids. I mean, you mentioned ATCs in detail, but

In terms of nucleic acids uh is partner interest there at a similar stage, um or is just ABC the more advanced near-term modality. Thank you.

Helen Torley: Yeah. Thanks, Mike. With regard to the ADCs, I would say that we are engaged with several pharma and biotech companies. It is based on a specific set of products they have in development or have commercialized. It is very much on a company-by-company, brand-by-brand basis. What's driving the interest is the potential to optimize the target product profile to get an improved benefit risk profile. Obviously we have filed for a number of patents, which of course is covered in the discussions with the partners as well. It really is this ideal to get the optimal profile that is driving this on a product-by-product basis. The nucleic acid discussions are actually occurring in parallel.

Yeah, thanks Mike with regard to the edc's. I would say that we are engaged with the several, um, uh, farm and biotech companies. And it is based on a specific set of of products they have, um, in development or have commercialized. So it's very much on a company by company brand by brand, um, basis, um, what's driving, the interest is the potential to optimize the target product profile to get it. Improved benefit risk at profile. Um, and and obviously, we have, um, filed, um, for a number of patents, um, which of course is covered in the, the discussions with the partners at as well, uh, but it really is this ideal to get the uh, optimal profile that is driving this on a a product by product basis.

Helen Torley: Again, we have generated a compelling non-clinical data that is being discussed across several companies at this point in time. I look forward to those progressing and sometime in the next months and quarters being able to announce a deal there as well. ADCs got out of the gate faster. That doesn't mean to say that nucleic acids aren't coming at some time in the next quarters too.

Um, the Nic acid discussions are actually occurring in parallel. Um, again we we have uh generated

Compelling, uh, non-clinical data that has been discussed across um several companies at this point in time. Um, and I look forward to those progressing and uh sometime um, in the next uh, months and quarters being able to, to announce the deal there as well. Um, adc's got, uh, out of the gate faster, but that doesn't mean to say that Nicole Casas aren't coming at some time in the next quarters, too.

Michael DiFiore: I see. Thank you.

Operator: We have reached the end of the Q&A session. This concludes today's call. Thank you for attending. You may now disconnect.

Disconnect.