HALO - NASDAQ
Halozyme Therapeutics, Inc.
HALO·NASDAQ
$69.82
+2.3%HealthcareBiotechnology
Halozyme Therapeutics, Inc. operates as a biopharma technology platform company in the United States, Switzerland, Ireland, Belgium, Japan, and internationally. The company's products are based on the ENHANZE drug delivery technology, a patented recombinant human hyaluronidase enzyme (rHuPH20) that enables the subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other therapeutic molecules, as well as small molecules and fluids. Its flagship product is Hylenex recombinant, a formulation of rHuPH20 to facilitate subcutaneous fluid administration for achieving hydration to enhance the dispersion and absorption of other injected drugs in subcutaneous urography and to improve resorption of radiopaque agents. The company also develops Perjeta; RITUXAN HYCELA and MabThera SC for the treatment of non-Hodgkin lymphoma and chronic lymphocytic leukemia (CLL); RITUXAN SC for patients with CLL; and HYQVIA for the treatment of immunodeficiency disorders. In addition, it is developing Tecentriq for non-small cell lung cancer; OCREVUS for multiple sclerosis; DARZALEX for the treatment of patients with amyloidosis, smoldering myeloma, and multiple myeloma; nivolumab for the treatment of solid tumors; ARGX-113, a human neonatal Fc receptor; ARGX-117 to treat autoimmune diseases; and BMS-986179, an anti-CD-73 antibody. The company has collaborations with F. Hoffmann-La Roche, Ltd.; Hoffmann-La Roche, Inc.; Baxalta US Inc.; Baxalta GmbH; Pfizer Inc.; Janssen Biotech, Inc.; AbbVie, Inc.; Eli Lilly and Company; Bristol-Myers Squibb Company; Alexion Pharma Holding; ARGENX BVBA; Horizon Therapeutics plc; National Institute of Allergy and Infectious Diseases; Centre for the AIDS Programme of Research in South Africa; and ViiV Healthcare Limited for small and large molecule targets for the treatment and prevention of HIV. Halozyme Therapeutics, Inc. was founded in 1998 and is based in San Diego, California.
At a Glance
Live SnapshotMarket Cap$8.28B
EPS2.6400
P/E Ratio25.45
Earnings Date08/04/2026
Earnings Call Transcript
HALO • 2026 • Q1
Operator
Good afternoon. My name is Melissa, and I will be your conference operator today. At this time, I would like to welcome everyone 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. Please go ahead.
Tram Bui
Thank you, operator. Good afternoon, welcome to our first quarter 2026 financial and operating results conference call. In addition to the press release issued today after the market close, you can find a supplementary slide presentation that will be referenced during today's call in the investor relations section of our website. Leading the call will be Dr. Helen Torley, Halozyme's President and Chief Executive Officer, who will provide an update on our business, David Ramsay, our Interim Chief Financial Officer, will review our financial results as well as our outlook. On today's call, we will be making forward-looking statements as outlined on slide two. I would also refer you to our SEC filings for a full list of risks and uncertainties. During the call, both GAAP and non-GAAP financial measures will be discussed.
Tram Bui
Certain non-GAAP or adjusted financial measures are reconciled with the comparable GAAP financial measures in our earnings press release and slide presentation. I will now turn the call over to Dr. Helen Torley. We will start on slide three.
Helen Torley
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 2026-2028 financial guidance. Our recent new deal momentum and new nominations by partners, accompanied by the expanding number of new phase I starts, is bending the curve in the 2029 plus period. 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. Today, my presentation will address how our strategy will deliver durable value for investors during our current guidance period of 2026-2028, continue to compound value in the 2029 plus timeframe, and deploy robust free cash flow judiciously over the short and the long term.
Helen Torley
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 ENHAN
Helen Torley
Based on these results, I am pleased to reaffirm our full year 2026 financial guidance and the 2026 to 2028 financial guidance. Two highlights I'll point out. For 2026, we continue to project ENHAN
Helen Torley
Firstly, we will invest to maximize the value of our organic investments, predominantly to support partner success with investments in ENHAN
Helen Torley
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. 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. Let me explain why I believe this to be the case on slide seven. Our revenue in and post-2029 will come from four key sources. The first driver is the continued performance and contribution from our 10 current ENHAN
Helen Torley
The second driver is up to 13 new launches in the 2029 plus timeframe, arising from the current ENHAN
Helen Torley
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. 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, 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. I'll move now to the second driver, the current ENHAN
Helen Torley
We project to have up to 13 additional ENHAN
Helen Torley
A second ENHAN
Helen Torley
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 I clinical starts will occur in the first half of 2027. 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. Turning now to slide nine and our fourth 2029 plus driver, the next waves of launches that will result from partners progressing additional targets under already signed Hypercon and ENHAN
Helen Torley
Under our current ENHAN
Helen Torley
Royalties being the most important recurring and the largest revenue stream for each product. Each of these deals includes one or more targets that represent multi-billion-dollar total sales potential. In May, we entered a new ENHAN
Helen Torley
In early April, we announced a new Hypercon collaboration with Vertex Pharmaceuticals, enabling the use of our Hyperconcentration 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, this agreement demonstrates growing demand for next-generation delivery solutions that extend beyond ENHAN
Helen Torley
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. To date, Hypercon has signed CLAs with five companies for a total of 17 potential targets. We project to continue to add to this already impressive number of CLAs and potential targets for Hypercon, just as we are building for ENHAN
Helen Torley
Our 10 launch products, including DAR
Helen Torley
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. For a patient with multiple myeloma, what the ENHAN
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 the prefilled syringe for VYVGART Hytrulo with ENHAN
Helen Torley
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. 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 U.S. 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. Roche reported that Phesgo continues to deliver strong growth, increasing 27% year-over-year to 686 million CHF, or approximately $877 million.
Helen Torley
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 DAR
Helen Torley
I'll share two recent highlights, one for OCREVUS
Helen Torley
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 ENHAN
Helen Torley
Looking ahead, J&J has identified RYBREVANT 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. 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 2026-2028 financial guidance. Thirdly, we have four drivers of revenue growth in the 2029-plus time period.
Helen Torley
The continued performance of our 10 approved ENHAN
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 ENHAN
David Ramsay
Adjusted EBITDA grew meaningfully, even as we continue to invest in Hypercon and SurfBio, 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.
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 ENHAN
David Ramsay
GAAP 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. We ended the quarter with net leverage of approximately 2.5 times, reflecting the acquisitions of Hypercon and SurfBio. 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.
David Ramsay
As shown on slide 14, we continue to expect total revenue of $1.71 billion-$1.81 billion, representing year-over-year growth of 22%-30%, driven by royalty revenues and product sales from API. Royalty revenues of $1.13 billion-$1.17 billion, representing year-over-year growth of 30%-35%. We continue to expect DAR
David Ramsay
I am pleased with the continued strength of our business as reflected in our strong first quarter performance and the team's execution. We are still in the early stages of realizing the value from our ENHAN
Helen Torley
Thank you, David. In conclusion, let me just close by reiterating what makes Halozyme such a compelling investment. We demonstrate our conviction today with our new $1 billion share repurchase program. The continued strong performance of our currently approved products and the increasing number of indications gives us strong confidence in the 2026-2028 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.
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 ENHAN
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.
Jason Butler
Hey, thanks for taking the questions, and congrats on the quarter. First one, Helen, when you think about the 2029 and after ENHAN
Helen Torley
Thanks so much, Jason. 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 assured 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. 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 OCREVUS, like RYBREVANT, like VYVGART, I mean, really I can name multiple ones like DAR
Helen Torley
That's not to talk about the additional launches we're going to start seeing from the current enhanced 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. Also there's some additional targets that are now in development testing. To find the formulation before going into clinical.
Helen Torley
I can say there's been really a 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 IV delivery at home is really the target product profile now for so many disease conditions.
Jason Butler
Great. Thank you.
Operator
Your next call comes from the line of Brendan Smith with TD Cowen. 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 two phase I clinical starts with Hypercon assets, I think now going to be in first half of next year. Can you help us understand, I guess, what's left to finish up there on Halozyme's side from a manufacturing standpoint, get those ready to go? Can you just maybe confirm that timing to hear what those two programs are will still be whenever they start that phase I? 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'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 Halozyme 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
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 the first half of 2027.
Brendan Smith
Great. Thanks, Helen. Then just maybe quickly, I wanted to make sure I didn't miss it. 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? You know, fully appreciate subject to change, but 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?
Helen Torley
Yes. I think a good heuristic to use, Brendan, is that it has taken between four and five years for ENHAN
Brendan Smith
Got it. Great. Thanks, guys.
Operator
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. Congrats on all the deal-making progress here. Helen, one question I have is, 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 such a unique technology, Electrify 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, what your know-how with ENHAN
Helen Torley
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, collaborating with a strong CDMO called Thermo Fisher Patheon. 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.
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.
Operator
Your next question comes from the line of Dave Risinger with Leerink Partners. Your line is now open. Please go ahead.
Dave Risinger
Yes. Thanks very much. Congrats, Helen, to you and your team on all the great fundamental momentum in the business and new contract signings. 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? 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.
Dave Risinger
With respect to Hypercon versus SurfBio, 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.
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 based on partner communications, we'll 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.
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 projectable 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.
David Ramsay
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.
Helen Torley
Yep. 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. 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.
Helen Torley
Different processes, different stages of development. 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 SurfBio as well as Hypercon in the quarter. We look forward to providing further updates throughout the year as we're advancing both of these innovative Hyperconcentration technologies.
Dave Risinger
Thank you.
Helen Torley
Thanks, David.
Operator
Your next question comes from the line of Sean Laaman with Morgan Stanley. Your line is now open. Please go ahead.
Sean Laaman
Good afternoon, Helen and team. Hope everyone's well. Yeah, Helen, on the 13 ENHAN
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. 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. We still feel very great about the strength of the royalties for these multiple new royalty streams, all of which have the potential to be getting into that mid-single digit royalty place.
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 U.S. 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 contracts, that will extend our royalty term from what is common in all of our contracts to be a minimum of 10 years, two additional years up to and including for the full royalty term of the co-form patent, which is 20 years from filing.
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, 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.
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 we are the gold standard. ENHAN
Helen Torley
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 ENHAN
Sean Laaman
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.
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 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 ENHAN
Helen Torley
It is really that direct experience we have from ENHAN
Corinne Johnson
Great. Thanks. 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?
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. 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. Because companies have that mindset and know what is going to be the most competitive profile, that is what is bringing them to us.
Helen Torley
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 hyper concentrate many antibodies down into this 2 mls, 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 SurfBio, 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.
Corinne Johnson
Thanks.
Operator
Your next question comes from the line of Jessica Fye with JPMorgan. Your line is now open. Please go ahead.
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, Helen, 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.
Helen Torley
Thanks, Jess, for that. You know, 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 then partner confidential, 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 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.
Helen Torley
In terms of the timing from when the Hypercon deal is announced to being in the clinic, it, 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.
Helen Torley
I would say, You know, I'm 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'm excited to see for each of these new partners.
Jessica Fye
Thank you.
Operator
As a reminder, if you 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 H.C. Wainwright. Your line is now open. Please go ahead.
Ahmed Mahmoud
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 ENHAN
Helen Torley
Yeah. You know, 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. Those are upfront milestones for progress and development and with sales and mid-single digit royalties. That has been very consistent, very reminiscent of ENHAN
Helen Torley
For ENHAN
Operator
Your next question comes from the line of Michael DiFiore 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 drugs 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, 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.
Helen Torley
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. 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 an improved benefit risk profile. 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. The nucleic acid discussions are actually occurring in parallel.
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, but that doesn't mean to say that nucleic acids aren't coming at some time in the next quarters too.
Michael DiFiore
I see. Thank you.
Transcript from May 11, 2026
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