Halozyme (HALO) Q1 FY26 earnings call: guidance and Q&A

What are the biggest ENHANZE products expected post-2029 and when will they peak? How many Hypercon discussions were pre-acquisition versus new?

The majority of royalty revenue from current 10 ENHANZE products (66%) is still to come between 2026-2032, with products like OCREVUS, RYBREVANT, VYVGART, and DARZALEX contributing significantly. For Hypercon, one deal was ongoing pre-acquisition, one was new, and there's broader interest and early feasibility testing underway, driven by the secular trend towards subcutaneous and at-home delivery.

“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 current 10 launched products coming between 2026 and 2032.”

asked by Jason Butler · answered by Helen Torley

What needs to be done for Hypercon Phase I starts in H1 2027, and what is the expected launch timeframe for the 13 additional ENHANZE products?

For Hypercon, the focus is on finalizing clinical supply manufacturing to enable Phase I starts in H1 2027. Partners will likely reveal targets closer to the Phase I start. The 13 additional ENHANZE products are expected to launch between 2029 and 2032, based on a typical 4-5 year development timeline from Phase I.

“I'd be looking towards the 2031, '32 for the latest of these with it beginning in '29 and occur over that '29 to '32 time frame.”

asked by Brendan Smith · answered by Helen Torley

How comfortable is Halozyme with the scalability of Hypercon, given Elektrofi did not take it to clinic, and how does Halozyme's ENHANZE know-how help?

Halozyme is confident in Hypercon's scalability and is investing in manufacturing capacity to offer end-to-end services, from drug substance to commercial fill/finish. They are working with CDMO Thermo Fisher Patheon for clinical batches and are leveraging their expertise from ENHANZE to advance Hypercon into clinical and commercial manufacturing.

“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.”

asked by Mohit Bansal · answered by Helen Torley

What milestones are included in 2026 guidance? What amount of buyback was reflected in EPS guidance? Compare manufacturing scale-up for Hypercon and Surf Bio.

All anticipated Phase I/III and commercial milestones, including a certain amount for new deal milestones, are in 2026 revenue guidance. The EPS guidance does not include any impact from the $400 million share repurchases planned for 2026. Surf Bio is 18-24 months earlier in development than Hypercon, relying on spray drying (a common manufacturing type), while Hypercon uses a novel dehydration process for microparticles.

“Four 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.”

asked by David Risinger · answered by Helen Torley

What royalty rates can be expected for the 13 ENHANZE products launching post-2029, and what is the IP position? Any comments on competing hyaluronidase technologies like Sanofi's?

New ENHANZE contracts typically start at single-digit royalties, escalating to mid-single-digits with sales. The IP position is strong due to co-formulation patents, which can extend royalty terms beyond the initial 10 years, potentially up to 20 years from filing, often maintaining original royalty rates. Halozyme cannot comment on Sanofi's specific activities but notes that companies often approach Halozyme first due to its gold standard status and expertise, even if exclusive licenses prevent collaboration.

“The base composition of matter patents will expire in 2029 in the U.S. and in Europe. However, the power of our business model that is sometimes underestimated, is the power of our co-formulation patents.”

asked by Sean Laaman · answered by Helen Torley