Q4 2024 Halozyme Therapeutics Inc Earnings Call Transcript
Key Points
- Halozyme Therapeutics Inc (HALO) achieved record-breaking performance in 2024, with total revenue exceeding $1 billion for the first time, marking a 22% growth over the prior year.
- The company raised its financial guidance twice during the year and exceeded its raised guidance for royalty revenue, adjusted EBITDA, and non-GAAP EPS.
- Strong royalty revenue growth of 27% in 2024 resulted in $571 million in royalty revenue, driven by products like DARZALEX subcutaneous, Phesgo, and VYVGART Hytrulo.
- Halozyme Therapeutics Inc (HALO) extended the patent protection of ENHANZE in Europe to 2029, maintaining its royalty rate for DARZALEX subcutaneous and amivantamab subcutaneous.
- The company projects continued strong growth in 2025, with total revenue expected to reach between $1.15 billion and $1.225 billion, representing growth of 13% to 21% year over year.
- Despite strong performance, the company faces challenges with the U.S. patent reissue for ENHANZE, which is not yet reflected in their five-year financial outlook.
- The recent approvals of products like OCREVUS Zunovo, TECENTRIQ Hybreza, and OPDIVO Qvantig are expected to have minimal contribution to 2025 revenues, with more meaningful contributions anticipated in 2026 and beyond.
- The company is experiencing a temporary impact on royalty revenue due to annual contractual rate resets, particularly affecting DARZALEX, which may result in a 10% decrease in first-quarter royalty revenue compared to the fourth quarter of 2024.
- Halozyme Therapeutics Inc (HALO) is still in the process of securing new deals and nominations, with some discussions in early technical review stages, indicating potential delays in finalizing agreements.
- The company received a complete response letter from the FDA for amivantamab subcutaneous, related to observations at a manufacturing facility, delaying its U.S. approval.
Good afternoon. My name is Karen, and I will be your conference moderator today. At this time, I would like to welcome everyone to the Halozyme fourth-quarter and full-year 2024 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.
Thank you, operator. Good afternoon and welcome to our fourth quarter and full-year 2024 financial and operating results conference call.
In addition to the press release issued today after the market closed, you could 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 in our business; and Nicole Labrosse, our Chief Financial Officer, will
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