On this page of StockholderLetter.com we present the latest annual shareholder letter from HALOZYME THERAPEUTICS, INC. — ticker symbol HALO. Reading current and past HALO letters to shareholders can bring important insights into the investment thesis.

 •  3/18/2025 Letter Continued (Full PDF)
 •  3/24/2023 HALO Stockholder Letter
 •  3/15/2024 HALO Stockholder Letter
 •  More "Biotechnology" Category Stockholder Letters
 •  HALO Benford's Law Stock Score = 89

HALO Shareholder/Stockholder Letter Transcript:

2024
Annual Report

58% year-over-year to $444 million and adjusted EBITDA
increased 48% year-over-year to $632 million. GAAP
diluted EPS increased 63% year-over-year to $3.43 and
non-GAAP diluted EPS increased 53% year-over-year to
$4.23. This remarkable    nancial and operational performance and our continued business expansion supports
our $1 billion royalty revenue projection in 2027 and
substantial revenue for many years to come.
1 million
$ 1 billion
Dear Fellow
Shareholders:
As I re   ect on the past year, I am proud to share
the remarkable progress and signi   cant growth
Halozyme achieved in 2024. This year has been
a testament to our unyielding commitment
to advancing our innovative drug delivery
solutions for patients and delivering exceptional
value to our shareholders.
TOUCHING LIVES AND REINVENTING
THE PATIENT EXPERIENCE
We are incredibly proud to share that an estimated
one million patients have now received drugs
delivered subcutaneously with ENHANZE  . This
milestone is not just a number; it represents one million
lives potentially positively impacted by our proprietary
drug delivery technology. Each patient who bene   ts
from ENHANZE   is a demonstration of our commitment
to improving the patient treatment experience and
potentially outcomes. The broad adoption and use
has also established an unsurpassed safety database,
providing invaluable insights to inform regulators and
new partners.
RECORD-BREAKING FINANCIAL
PERFORMANCE
In 2024, we achieved a signi   cant milestone by
exceeding $1 billion in total revenue for the    rst time,
representing 22% growth over the prior year. Our 2024
royalty revenue increased 27% year-over-year to $571
million, driven by continued strong growth of DARZALEX FASPRO   and PHEGSO  , and growing momentum
from VYVGART   HYTRULO. Through diligent expense
oversight and management, net income increased
9
patient lives touched
by ENHANZE  
in total revenue
Approved commercial products
global markets
in up to
100
ADVANCING OUR
PATIENT-CENTRIC MISSION AND
GROWING OUR PORTFOLIO
At the foundation of our success is an organization that
champions our patient-centric mission. Together, as One
Team, we made signi   cant advancements seeking to
improve the lives of patients battling diseases such as
cancer, autoimmune disease, HIV, and neurodegenerative
disorders.
We now have nine approved partner products with ENHANZE  , including four products or new indications with
ENHANZE   receiving regulatory approval in a major region
throughout 2024, including VYVGART   HYTRULO for Chronic In   ammatory Demyelinating Polyneuropathy (CIDP),
TECENTRIQ HYBREZA   , OCREVUS ZUNOVO    and Opdivo
Qvantiq   . In addition, current partners nominated    ve
new ENHANZE   targets for future advancement into the
clinic for subcutaneous (SC) development.
As the inventor of the use of hyaluronidases for large volume subcutaneous drug delivery, we are proud that subcutaneous delivery with ENHANZE   of our partners    innovative products can not only improve the patient treatment
experience through reduced treatment times, it also has
been demonstrated to reduce Health Care Practitioner
resource utilization and cost to the system. In 2024, we also
announced the availability to license our modi   ed hyaluronidase patents for companies who cannot or do not
wish to license ENHANZE   and who are utilizing or planning
to utilize our pioneering intellectual property.

FINANCIAL GROWTH
AND OUTLOOK
ROBUST CAPITAL
ALLOCATION STRATEGY
In 2024, Halozyme launched our third $750 million share
repurchase program, executing a $250 million accelerated share repurchase, underscoring our con   dence
in our    nancial strength and revenue durability. Since
the inception of the    rst share repurchase program
in 2019, we have returned $1.55 billion in share repurchases, an average of approximately $250 million a
year. As disciplined stewards of free cash    ow, we will
continue to evaluate share repurchase opportunities
that offer a compelling return, in addition to other
capital deployment approaches.
In 2025, we project total revenue of $1,150 million to
$1,225 million, representing year-over-year growth of
13% to 21%, adjusted EBITDA of $755 million to $805
million, representing year-over-year growth of 19% to
27% and non-GAAP diluted earnings per share of $4.95
to $5.35, representing year-over-year growth of 17% to
26%.
From 2024 to 2028, we project royalty revenue, adjusted EBITDA and non-GAAP earnings per share will
more than double while total revenue comes close to
doubling, increasing to $1.7 to $1.9 billion by 2028.
The momentum and opportunity we have across our
business gives us con   dence that we are    rmly on
track to deliver another record year in 2025 and meet
our targets this year and beyond.
Revenue Projections
Multi-Year Guidance Shows Remarkable Projected Doubling of Key Guidance
Metrics 2024-2028, Ten Years After First ENHANZE   Product Launch
Royalty Revenue
Total Revenue
2024 and 2028
2024 and 2028
$1,735-$1,860
106%
77%
$1,150 - $1,200
$1,015
$571
2024A
2028E
Adjusted EBITDA
2024 and 2028
$1,275-$1,400
$632
2024A
2028E
Non-GAAP Diluted EPS
2024 and 2028
112%
2024A
102%
$8.25-$8.85
$4.23
2028E
$ In millions, Except EPS
Growth rates calculated from 2024 actual to midpoint of 2028 range
2024A
2028E

COMMITMENT TO CONTINUOUS IMPROVEMENT
We remain committed to progressing our environmental, social, and governance (ESG) initiatives to advance
our business progress and success. We are committed to continuous improvement and are proud to highlight
the progress on our sustainability agenda, which includes:

Mitigating the environmental footprint of our business activities by implementing strategies
aimed at reducing waste and lowering emissions.

Nurturing a healthy and thriving workforce by fostering a workplace that prioritizes inclusion,
personal development, and growth.

Working with our Board of Directors to apply high governance standards.

Serving our communities through volunteerism and philanthropic efforts.
Over the past year, our innovation and our One Team culture have strengthened Halozyme   s leadership in drug
delivery. We are excited to continue advancing our initiatives to drive even greater value to our stakeholders.
LOOKING AHEAD
We remain dedicated to our mission of developing therapies that    t the patient   s life. Our strong foundation,
combined with our innovative pipeline and strategic partnerships, positions us well for continued growth and
success.
Thank you for your ongoing support and partnership as we continue this journey together.
Best Regards,
Helen Torley
Forward Looking Statements: Statements set forth in this annual report and letter to shareholders include forward-looking
statements including, without limitation, statements concerning the Company   s expected future growth and    nancial
performance (including, but not limited to, expected future revenues and earnings per share), plans to repurchase shares
under its share repurchase program and potentially execute other capital allocation strategies, potential for lowering the
treatment burden for patients treated with ENHANZE  , improving patient outcomes and lowering healthcare system costs,
partner development programs and potential approvals of partnered products and additional opportunities for licensing
the Company   s Mdase patents. These forward-looking statements are typically, but not always, identi   ed through use of the
words    believe,       enable,       may,       will,       could,       intends,       estimate,       project   ,    anticipate,       plan,       predict,       probable,       potential,       possible,       should,       continue,    and other words of similar meaning and involve risk and uncertainties
that could cause actual results to differ materially from those in the forward-looking statements. Actual results could differ
materially from the expectations contained in these forward-looking statements as a result of several factors, including
unexpected levels of revenues, expenditures and costs, unexpected delays in the execution of the Company   s share repurchase program or other potential capital allocation strategies, unexpected results or delays in the development, regulatory
review or commercialization of the Company   s partnered or proprietary products, and unexpected patient experiences or
outcomes. These and other factors that may result in differences are discussed in greater detail in the Company   s most recently    led Annual Report on Form 10-K    led with the Securities and Exchange Commission. Except as required by law, the
Company undertakes no duty to update forward-looking statements to re   ect events after the date of this annual report
and letter to shareholders.
Note: This letter to shareholders contains product names, trademarks and registered trademarks that are the property of
their respective owners.

Non-GAAP Financial Measures: In addition to disclosing    nancial measures prepared in accordance with U.S. generally accepted accounting principles
(   GAAP   ), these materials contain certain non-GAAP    nancial measures. The Company reports non-GAAP diluted earnings per share, non-GAAP diluted shares,
earnings before interest, taxes, depreciation, amortization (   EBITDA   ), Adjusted EBITDA, Adjusted EBITDA Margin and expectations of those measures in addition to,
and not as a substitute for, or superior to,    nancial measures calculated in accordance with GAAP. Non-GAAP diluted earnings per share excludes share-based
compensation expense, amortization of debt discount, intangible asset amortization, one-time changes, if any, such as changes in contingent liabilities, inventory adjustments, impairment charges, and certain adjustments to income tax expense The Company calculates non-GAAP diluted shares excluding the dilutive
impact of convertible notes which is used in calculating non-GAAP diluted earnings per share. EBITDA excludes from earnings interest, taxes, depreciation and
amortization. The Company calculates adjusted EBITDA by excluding one-time items, if any, such as changes in contingent liabilities, inventory adjustments and
impairment charges. The Company uses Non-GAAP    nancial information in assessing what it believes is a meaningful and comparable set of    nancial performance measures to evaluate operating trends, as well as in establishing portions of our performance-based incentive compensation programs. The Company
does not provide reconciliations for forward-looking adjusted measures to GAAP due to the inherent difficulty in forecasting and quantifying certain amounts that
are necessary for such reconciliation, including adjustments that could be made for changes in contingent liabilities, share based compensation expense and the
effects of any discrete income tax items. For the same reasons, the Company is unable to address the probable signi   cance of the unavailable information. The
Company provides non-GAAP    nancial measures that it believes will be achieved, however it cannot accurately predict all of the components of the adjusted
calculations and the U.S. GAAP measures may be materially different than the non-GAAP measures. Reconciliations between GAAP and non-GAAP    nancial
measures are included in these materials.
GAAP to Non-GAAP Reconciliation: EBITDA and Adjusted EBITDA
1.
Amount relates to fair value gain on contingent liability due to the
due to the termination of the TLANDO license agreement in September 2023 (   TLANDO Termination   ).
2.
Amount relates to inventory write-off due to TLANDO Termination
and amortization of the inventory step-up associated with purchase
accounting for the acquisition of Antares Pharma, Inc. (   Antares   ).
3.
Amounts represent incremental costs including legal fees, accounting fees and advisory fees incurred for the Antares acquisition.
GAAP to Non-GAAP Reconciliation: Net Income and Diluted EPS
1.
Amount represents incremental costs including legal fees,
accounting fees and advisory fees incurred for the prior year
Antares acquisition.
2.
Amounts relate to amortization of the inventory step-up associated with purchase accounting for the Antares acquisition.
3.
Amounts relate to a fair value gain on contingent liability,
inventory write-off and impairment of TLANDO product rights
intangible assets due to the TLANDO Termination.
4.
Adjustments relate to taxes for the reconciling items, as well as
excess bene   ts or tax de   ciencies from stock-based compensation, and the quarterly impact of other discrete items.
5.
Adjustment made for the dilutive effect of our Convertible Senior
Notes due 2028 when the effects is not the same on a GAAP and
non-GAAP basis for the reporting period.



 3/18/2025 Letter Continued (Full PDF)