Reiterating 2024 Financial Guidance: Total
Revenue of $915-985 Million,
Representing YOY Growth of 10-19%, Adjusted EBITDA of $535-585 Million, Representing YOY Growth of 26-
37% and Non-GAAP Diluted EPS of $3.55-3.90, Representing YOY Growth of
28-41%
Fourth Quarter Revenue Increased 27% YOY to
$230 million; GAAP Diluted EPS of
$0.65 and Non-GAAP Diluted EPS of
$0.821
Full Year 2023 Revenue Increased 26% YOY to
$829 million; GAAP Diluted EPS of
$2.10 and Non-GAAP Diluted EPS of
$2.771
Announcing New $750
million Share Repurchase Program
SAN
DIEGO, Feb. 20, 2024 /PRNewswire/
-- Halozyme Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme" or
the "Company") today reported its financial and operating results
for the fourth quarter and full year ended December 31, 2023
and provided an update on its recent corporate activities and
outlook.
"We are pleased to reiterate our 2024 financial guidance, which
represents continued robust growth of total revenue, royalty
revenue, adjusted EBITDA and non-GAAP diluted EPS, and builds upon
our strong 2023 performance and results. Multiple, positive,
value-creating events including the first approvals of VYVGART
Hytrulo and Tecentriq SC and positive phase 3 data readouts with
ENHANZE for VYVGART Hytrulo in CIDP, ocrelizumab SC and nivolumab
SC all achieved in 2023, add new opportunities for continued
revenue growth," said Dr. Helen
Torley, president and chief executive officer of Halozyme.
"Today's announcement of a new $750
million share repurchase program demonstrates our confidence
in sustained and durable growth."
Fourth Quarter and Recent Corporate Highlights:
- Reiterating 2024 financial guidance announced January 17th including total revenue of
$915 million to $985 million, representing year-over-year growth
of 10% to 19%, adjusted EBITDA of $535
million to $585 million,
representing year-over-year growth of 26% to 37% and non-GAAP
diluted earnings per share of $3.55
to $3.90, representing year-over-year
growth of 28% to 41%.
- In February 2024, the Company
announced its third share repurchase program to repurchase up to
$750 million of its outstanding
common stock.
- In November 2023, Halozyme
entered into an Accelerated Share Repurchase agreement to
accelerate the remaining $250.0
million in share repurchases under the $750 million approved program from December 2021.
Fourth Quarter and Recent Partner Highlights:
- In February 2024, argenx
announced that the U.S. Food and Drug Administration ("FDA") has
accepted for priority review a supplemental Biologics License
Application ("sBLA") for VYVGART® Hytrulo (efgartigimod
alfa and hyaluronidase-qvfc) for the treatment of chronic
inflammatory demyelinating polyneuropathy ("CIDP"). The application
has been granted a PDUFA action date of June
21, 2024.
- In February 2024, Takeda
submitted a New Drug Application in Japan seeking approval for TAK-771,
subcutaneous 10% human immunoglobulin with ENHANZE®, for
treatment of primary immunodeficiency.
- In January 2024, Janssen
announced submission of a sBLA to the FDA seeking approval of a new
indication for DARZALEX FASPRO® in combination with
bortezomib, lenalidomide and dexamethasone for induction and
consolidation treatment and with lenalidomide for maintenance
treatment of adult patients who are newly diagnosed with multiple
myeloma and are eligible for autologous stem cell transplant.
- In January 2024, Roche received
European Commission ("EC") marketing authorization for
Tecentriq® subcutaneous ("SC") for all approved
indications of Tecentriq® IV for multiple cancer
types.
- In January 2024, Takeda received
FDA approval for HYQVIA® for the treatment of CIDP as
maintenance therapy to prevent the relapse of neuromuscular
disability and impairment in adults.
- In January 2024, Takeda received
EC approval for HYQVIA® for the treatment of CIDP as
maintenance therapy in patients of all ages after stabilization
with intravenous immunoglobulin therapy.
- In January 2024, argenx received
regulatory approval in Japan for
VYVDURA® (efgartigimod alfa and hyaluronidase-qvfc)
co-formulated with ENHANZE® for the treatment of adult
patients with generalized myasthenia gravis ("gMG") including
options for self-administration, resulting in a $5.0 million milestone payment.
- In 2023, Roche filed ocrelizumab SC with ENHANZE®
with regulatory authorities in the U.S., European Union and
Great Britain.
- In November 2023, Halozyme and
Acumen entered into a global collaboration and non-exclusive
license agreement that provides Acumen access to
ENHANZE® for a single target. Acumen intends to explore
the potential use of ENHANZE® for ACU193, Acumen's
clinical stage monoclonal antibody candidate to target Amyloid-β
Oligomers for the treatment of early Alzheimer's disease.
- In November 2023, Teva announced
FDA approval of the generic version of Forteo®,
featuring Halozyme's multi-dose auto-injector pen platform for the
treatment of osteoporosis among certain women and men.
- In November 2023, argenx received
EC approval of VYVGART® SC (efgartigimod alfa and
hyaluronidase-qvfc) co-formulated with ENHANZE® for the
treatment of gMG in adult patients who are AChR antibody positive,
and in December 2023,
VYVGART® SC was made available to patients, resulting in
$23.0 million in milestone payments.
The European approval of VYVGART® SC provides the option
for patient self-administration.
- In October 2023, Takeda initiated
a Phase 2/3 study to evaluate the pharmacokinetics, safety, and
tolerability of subcutaneous administration of TAK-881 in adult and
pediatric participants with Primary Immunodeficiency Diseases.
Fourth Quarter 2023 Financial Highlights:
- Revenue was $230.0 million
compared to $181.5 million in the
fourth quarter of 2022. The 27% year-over-year increase was
primarily driven by royalty revenue growth, higher product sales as
a result of an increase in bulk rHuPH20 sales driven by partner
demand and continued growth in XYOSTED® and an increase
in milestone revenue. Revenue for the quarter included $122.1 million in royalties, an increase of 15%
compared to $106.0 million in the
prior year period, primarily attributable to increases in revenue
of subcutaneous DARZALEX® (daratumumab) and
Phesgo®.
Total revenue for the full year was $829.3
million, compared with $660.1
million in 2022, representing 26% year-over-year growth. The
increase was primarily driven by royalty revenue growth, full year
revenue contributions from the Antares acquisition in May 2022, and higher sales of bulk rHuPH20,
partially offset by timing of milestone revenue driven by partner
activities.
- Cost of sales was $52.3 million,
compared to $42.1 million in the
fourth quarter of 2022. The increase was primarily driven by growth
in proprietary product sales and bulk rHuPH20 demand.
Cost of sales for the full year was $192.4
million, compared to $139.3
million in 2022. The increase was primarily due to an
increase in sales of our proprietary and device partnered products
as a result of the Antares acquisition and higher bulk rHuPH20
sales.
- Amortization of intangibles expense was $17.8 million, compared to $4.6 million in the fourth quarter of 2022. The
increase was primarily due to a remeasurement adjustment of our
acquired intangible assets recorded in the fourth quarter of
2022.
Amortization of intangible expenses for the full year $73.8 million, compared to $43.1 million in 2022. The increase was primarily
due to the recognition of a full year amortization expense during
the current year for our acquired intangible assets and an
impairment charge of $2.5 million to
fully impair the TLANDO® product rights intangible asset
as a result of the license agreement termination notice provided to
Lipocine in September 2023.
- Research and development expense was $21.3 million, compared to $22.6 million in the fourth quarter of 2022. The
decrease was primarily due to the non-recurring clinical trial
expense incurred in the prior year, partially offset by higher
compensation expense in the current year.
Research and development expense for the full year was $76.4 million, compared to $66.6 million in 2022. The increase was primarily
due to an increase in compensation expense related to the ongoing
combined larger workforce to support the device platform in
regulatory, quality and manufacturing, as well as planned
investments in ENHANZE®, partially offset by one-time
transaction costs incurred in the prior year.
- Selling, general and administrative expense remained flat at
$37.6 million, compared to
$37.7 million in the fourth quarter
of 2022.
Selling, general and administrative expense for the full year was
$149.2 million, compared to
$143.5 million in 2022. The increase
was primarily due to an increase in compensation expense related to
the ongoing combined larger workforce, including the addition of
commercial resources in sales and marketing for our testosterone
replacement therapy products, partially offset by one-time
transaction costs incurred in the prior year.
- Operating income was $101.0
million, compared to operating income of $74.5 million in the fourth quarter of 2022.
Operating income for the full year was $337.6 million, compared to $267.5 million in 2022.
- Net Income was $85.4 million,
compared to net income of $57.7
million in the fourth quarter of 2022. Net income for the
full year was $281.6 million,
compared to net income of $202.1
million in 2022.
- EBITDA was $121.7 million,
compared to EBITDA of $81.6 million
in the fourth quarter of 2022. Adjusted EBITDA was $121.7 million, compared to Adjusted EBITDA of
$83.0 million in the fourth quarter
of 2022.1
EBITDA for the full year was $435.6 million, compared to EBITDA of
$314.5 million in the fourth quarter
2022. Adjusted EBITDA was $426.2
million, compared to Adjusted EBITDA of $358.9 million in 2022.1
- GAAP diluted earnings per share was $0.65, compared to $0.42 in the fourth quarter of 2022. Non-GAAP
diluted earnings per share was $0.82,
compared to $0.48 in the fourth
quarter of 2022.1
GAAP diluted earnings per share for the full year was
$2.10, compared to $1.44 in 2022. Non-GAAP diluted earnings per
share was $2.77, compared to
$2.21 in 2022.1
- Cash, cash equivalents and marketable securities were
$336.0 million on December 31, 2023, compared to $362.8 million on December
31, 2022. The decrease was primarily a result of the
repurchase of common stock for $400.0
million during 2023, partially offset by cash generated from
operations.
Financial Outlook for 2024
The Company is reiterating its financial guidance for 2024,
which was initially provided on January 17,
2024. For the full year 2024, the Company expects:
- Total revenue of $915 million to
$985 million, representing growth of
10% to 19% over 2023 total revenue primarily driven by increases in
royalty revenue, collaboration revenue and growth in product sales
from XYOSTED®. Revenue from royalties of $500 million to $525
million, representing growth of 12% to 17% over 2023.
- Adjusted EBITDA of $535 million
to $585 million, representing growth
of 26% to 37% over 2023.
- Non-GAAP diluted earnings per share of $3.55 to $3.90,
representing growth of 28% to 41% over 2023.1 The
Company's earnings per share guidance does not consider the impact
of potential future share repurchases.
Table 1. 2024 Financial Guidance
|
|
Guidance
Range
|
|
Total
Revenue
|
|
$915 to $985
million
|
|
Royalty
Revenue
|
|
$500 to $525
million
|
|
Adjusted
EBITDA
|
|
$535 to $585
million
|
|
Non-GAAP Diluted
EPS
|
|
$3.55 to
$3.90
|
|
Webcast and Conference Call
Halozyme will host its Quarterly Update Conference Call for the
fourth quarter and full year December 31, 2023 today, Tuesday,
February 20, 2024 at 1:30 p.m.
PT/4:30 p.m. ET. The
conference call may be accessed live with pre-registration via
link: https://registrations.events/direct/Q4I871904. The call will
also be webcast live through the "Investors" section
of Halozyme's corporate website and a recording will be made
available following the close of the call. To access the webcast
and additional documents related to the call, please visit
Halozyme.com.
About Halozyme
Halozyme is a biopharmaceutical company advancing disruptive
solutions to improve patient experiences and outcomes for emerging
and established therapies. As the innovators of ENHANZE®
drug delivery technology with the proprietary enzyme rHuPH20,
Halozyme's commercially-validated solution is used to facilitate
the subcutaneous delivery of injected drugs and fluids, with the
goal of reducing treatment burden for patients. Having touched more
than 800,000 patient lives in post-marketing use in seven
commercialized products across more than 100 global markets,
Halozyme has licensed its ENHANZE® technology to leading
pharmaceutical and biotechnology companies including Roche, Takeda,
Pfizer, Janssen, AbbVie, Eli Lilly, Bristol-Myers Squibb, argenx,
ViiV Healthcare, Chugai Pharmaceutical and Acumen
Pharmaceuticals.
Halozyme also develops, manufactures and commercializes, for
itself or with partners, drug-device combination products using its
advanced auto-injector technologies that are designed to provide
commercial or functional advantages such as improved convenience,
reliability and tolerability, and enhanced patient comfort and
adherence. The Company has two commercial proprietary products,
Hylenex® and XYOSTED®, partnered commercial
products and ongoing product development programs with several
pharmaceutical companies including Teva Pharmaceuticals and Idorsia
Pharmaceuticals.
Halozyme is headquartered in San
Diego, CA and has offices in Ewing, NJ and Minnetonka, MN. Minnetonka is also the site of its operations
facility.
For more information visit www.halozyme.com and connect with us
on LinkedIn and Twitter.
Note Regarding Use of Non-GAAP Financial Measures
In addition to disclosing financial measures prepared in
accordance with U.S. generally accepted accounting principles
("GAAP"), this press release and the accompanying tables contain
certain non-GAAP financial measures. The Company reports earnings
before interest, taxes, depreciation, and amortization ("EBITDA"),
adjusted EBITDA and Non-GAAP diluted earnings per share, and
guidance with respect to those measures, in addition to, and not as
a substitute for, or superior to, financial measures calculated in
accordance with GAAP. The Company calculates non-GAAP diluted
earnings per share excluding convertible notes inducement expense,
share-based compensation expense, amortization of debt discount,
intangible asset amortization, transaction costs for business
combinations, realized gains or losses on marketable security
sales, one-time changes in contingent liabilities, inventory
adjustments and impairment charges, and certain adjustments to
income tax expense. The Company calculates EBITDA excluding
interest, taxes, depreciation and amortization. The Company
calculates adjusted EBITDA excluding one-time items such as changes
in contingent liabilities and impairment charges, and transaction
costs for business combinations. Reconciliations between GAAP and
Non-GAAP financial measures are included at the end of this press
release. The Company does not provide reconciliations of
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 share-based compensation expense and the
effects of any discrete income tax items. The Company evaluates
other items of income and expense on an individual basis for
potential inclusion in the calculation of Non-GAAP financial
measures and considers both the quantitative and qualitative
aspects of the item, including (i) its size and nature, (ii)
whether or not it relates to the Company's ongoing business
operations and (iii) whether or not the Company expects it to occur
as part of the Company's normal business on a regular basis.
Non-GAAP financial measures do not have any standardized meaning
and are therefore unlikely to be comparable to similarly titled
measures presented by other companies. These non-GAAP financial
measures are not meant to be considered in isolation and should be
read in conjunction with the Company's consolidated financial
statements prepared in accordance with GAAP; and are not prepared
under any comprehensive set of accounting rules or principles. In
addition, from time to time in the future there may be other items
that the Company may exclude for purposes of its non-GAAP financial
measures; and the Company may in the future cease to exclude items
that it has historically excluded for purposes of its non-GAAP
financial measures. The Company considers these non-GAAP financial
measures to be important because they provide useful measures of
the operating performance of the Company, exclusive of factors that
do not directly affect what the Company considers to be its core
operating performance, as well as unusual events. The non-GAAP
measures also allow investors and analysts to make additional
comparisons of the operating activities of the Company's core
business over time and with respect to other companies, as well as
assessing trends and future expectations. The Company uses non-GAAP
financial information in assessing what it believes is a meaningful
and comparable set of financial performance measures to evaluate
operating trends, as well as in establishing portions of our
performance-based incentive compensation programs.
Safe Harbor Statement
In addition to historical information, the statements set forth
in this press release include forward-looking statements including,
without limitation, statements concerning the Company's financial
performance (including the Company's financial outlook for 2024 and
longer term projections) and expectations for future growth,
profitability, total revenue, royalty revenue, EBITDA, Adjusted
EBITDA, non-GAAP diluted earnings-per-share and potential share
repurchase under its share repurchase program. Forward-looking
statements regarding the Company's ENHANZE® drug
delivery technology may include the possible benefits and
attributes of ENHANZE®, its potential application to aid
in the dispersion and absorption of other injected therapeutic
drugs and facilitating more rapid delivery and administration of
higher volumes of injectable medications through subcutaneous
delivery. Forward-looking statements regarding the Company's
business may include potential growth and receipt of royalty and
milestone payments driven by our partners' development and
commercialization efforts, potential new clinical trial study
starts and clinical data, regulatory submissions and product
launches, the size and growth prospects of our partners' drug
franchises, potential new or expanded collaborations and
collaborative targets and regulatory review and potential approvals
of new partnered or proprietary products and the Company's
development and partnership potential of a high volume
auto-injector. These forward-looking statements are typically, but
not always, identified through use of the words "expect,"
"believe," "enable," "may," "will," "could," "intends," "estimate,"
"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, unexpected results or delays in
the growth of the Company's business, or in the development,
regulatory review or commercialization of the Company's partnered
or proprietary products (including its high volume auto-injector),
regulatory approval requirements, unexpected adverse events or
patient outcomes and competitive conditions. These and other
factors that may result in differences are discussed in greater
detail in the Company's most recent Annual Report on Form 10-K
filed with the Securities and Exchange Commission. Except as
required by law, the Company undertakes no duty to update
forward-looking statements to reflect events after the date of this
release.
Contacts:
Tram Bui
VP, Investor Relations and Corporate Communications
609-359-3016
tbui@halozyme.com
Samantha Gaspar
Teneo
617-877-9710
samantha.gaspar@teneo.com
Footnotes:
1. Reconciliations between GAAP reported
and non-GAAP financial information and adjusted guidance measures
are provided at the end.
Halozyme
Therapeutics, Inc.
Consolidated
Statements of Operations
(Unaudited)
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenues
|
|
|
|
|
|
|
|
|
Royalties
|
|
$ 122,052
|
|
$ 105,979
|
|
$ 447,865
|
|
$ 360,475
|
Product sales,
net
|
|
79,602
|
|
61,163
|
|
300,854
|
|
191,030
|
Revenues under
collaborative agreements
|
|
28,385
|
|
14,354
|
|
80,534
|
|
108,611
|
Total
revenues
|
|
230,039
|
|
181,496
|
|
829,253
|
|
660,116
|
Operating
expenses
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
52,298
|
|
42,120
|
|
192,361
|
|
139,304
|
Amortization of
intangibles
|
|
17,762
|
|
4,552
|
|
73,773
|
|
43,148
|
Research and
development
|
|
21,336
|
|
22,566
|
|
76,363
|
|
66,607
|
Selling, general and
administrative
|
|
37,608
|
|
37,749
|
|
149,182
|
|
143,526
|
Total operating
expenses
|
|
129,004
|
|
106,987
|
|
491,679
|
|
392,585
|
Operating
income
|
|
101,035
|
|
74,509
|
|
337,574
|
|
267,531
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Investment and other
(expense) income, net
|
|
5,360
|
|
852
|
|
16,317
|
|
1,046
|
Inducement expense
related to convertible note
|
|
—
|
|
—
|
|
—
|
|
(2,712)
|
Contingent liability
fair value measurement gain
|
|
—
|
|
—
|
|
13,200
|
|
—
|
Interest
expense
|
|
(5,220)
|
|
(4,570)
|
|
(18,762)
|
|
(16,947)
|
Net income before
income taxes
|
|
101,175
|
|
70,791
|
|
348,329
|
|
248,918
|
Income tax
expense
|
|
15,787
|
|
13,089
|
|
66,735
|
|
46,789
|
Net income
|
|
$
85,388
|
|
$
57,702
|
|
$ 281,594
|
|
$ 202,129
|
|
|
|
|
|
|
|
|
|
Earnings per
share
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.66
|
|
$
0.43
|
|
$
2.13
|
|
$
1.48
|
Diluted
|
|
$
0.65
|
|
$
0.42
|
|
$
2.10
|
|
$
1.44
|
|
|
|
|
|
|
|
|
|
Weighted average common
shares outstanding
|
|
|
|
|
|
|
|
|
Basic
|
|
129,054
|
|
135,284
|
|
131,927
|
|
136,844
|
Diluted
|
|
131,035
|
|
138,601
|
|
134,197
|
|
140,608
|
Halozyme
Therapeutics, Inc.
Consolidated Balance
Sheets
(Unaudited)
(In
thousands)
|
|
|
|
December 31,
2023
|
|
December 31,
2022
|
ASSETS
|
|
|
|
|
Current
assets
|
|
|
|
|
Cash and cash
equivalents
|
|
$
118,370
|
|
$
234,195
|
Marketable securities,
available-for-sale
|
|
217,630
|
|
128,599
|
Accounts receivable,
net and contract assets
|
|
234,210
|
|
231,072
|
Inventories,
net
|
|
127,601
|
|
100,123
|
Prepaid expenses and
other current assets
|
|
48,613
|
|
45,024
|
Total current
assets
|
|
746,424
|
|
739,013
|
Property and equipment,
net
|
|
74,944
|
|
75,570
|
Prepaid expenses and
other assets
|
|
17,816
|
|
26,301
|
Goodwill
|
|
416,821
|
|
409,049
|
Intangible assets,
net
|
|
472,879
|
|
546,652
|
Deferred tax assets,
net
|
|
4,386
|
|
44,426
|
Restricted
cash
|
|
—
|
|
500
|
Total
assets
|
|
$ 1,733,270
|
|
$
1,841,511
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities
|
|
|
|
|
Accounts
payable
|
|
$
11,816
|
|
$
17,693
|
Accrued
expenses
|
|
100,678
|
|
99,762
|
Current portion of
long-term debt, net
|
|
—
|
|
13,334
|
Total current
liabilities
|
|
112,494
|
|
130,789
|
Long-term debt,
net
|
|
1,499,248
|
|
1,492,766
|
Other long-term
liabilities
|
|
37,720
|
|
32,686
|
Contingent
liability
|
|
—
|
|
15,472
|
Total
liabilities
|
|
1,649,462
|
|
1,671,713
|
|
|
|
|
|
Stockholders'
equity
|
|
|
|
|
Common
stock
|
|
127
|
|
135
|
Additional paid-in
capital
|
|
2,409
|
|
27,368
|
Accumulated other
comprehensive loss
|
|
(9,278)
|
|
(922)
|
Retained
earnings
|
|
90,550
|
|
143,217
|
Total stockholders'
equity
|
|
83,808
|
|
169,798
|
Total liabilities and
stockholders' equity
|
|
$ 1,733,270
|
|
$
1,841,511
|
Halozyme
Therapeutics, Inc.
GAAP to Non-GAAP
Reconciliations
EBITDA
(Unaudited)
(In
thousands)
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP Net
Income
|
|
$
85,388
|
|
$
57,702
|
|
$
281,594
|
|
$
202,129
|
Adjustments
|
|
|
|
|
|
|
|
|
Investment and other
income
|
|
(5,360)
|
|
(852)
|
|
(16,317)
|
|
(1,046)
|
Interest
expense
|
|
5,220
|
|
4,570
|
|
18,762
|
|
16,947
|
Income tax
expense
|
|
15,787
|
|
13,089
|
|
66,735
|
|
46,789
|
Depreciation and
amortization
|
|
20,693
|
|
7,114
|
|
84,856
|
|
49,641
|
EBITDA
|
|
121,728
|
|
81,623
|
|
435,630
|
|
314,460
|
Adjustments
|
|
|
|
|
|
|
|
|
Gain on changes in
fair value of contingent liability(1)
|
|
—
|
|
—
|
|
(13,200)
|
|
—
|
Inventory
write-off(2)
|
|
—
|
|
—
|
|
3,509
|
|
—
|
Transaction costs for
business combinations(3)
|
|
—
|
|
1,391
|
|
278
|
|
21,934
|
Severance and
share-based compensation acceleration
expense(4)
|
|
—
|
|
—
|
|
—
|
|
22,552
|
Adjusted
EBITDA
|
|
$
121,728
|
|
$
83,014
|
|
$
426,217
|
|
$
358,946
|
|
|
|
|
|
|
|
|
|
Dollar amounts, as
presented, are rounded. Consequently, totals may not add
up.
|
|
(1)
|
Amount relates to fair
value gain on contingent liability 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
prior year acquisition of Antares Pharma, Inc.
("Antares").
|
(3)
|
Amounts represent
incremental costs including legal fees, accounting fees and
advisory fees incurred for the prior year Antares
acquisition.
|
(4)
|
Amount represents
severance cost and acceleration of unvested equity awards as part
of the Antares merger agreement.
|
Halozyme
Therapeutics, Inc.
GAAP to Non-GAAP
Reconciliations
Net Income and
Diluted EPS
(Unaudited)
(In thousands,
except per share amounts)
|
|
|
|
Three Months
Ended
December 31,
|
|
Twelve Months
Ended
December 31,
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
GAAP Diluted
EPS
|
|
$
0.65
|
|
$
0.42
|
|
$
2.10
|
|
$
1.44
|
Adjustments
|
|
|
|
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
—
|
|
—
|
|
—
|
|
0.02
|
Share-based
compensation
|
|
0.07
|
|
0.05
|
|
0.27
|
|
0.17
|
Amortization of debt
discount
|
|
0.01
|
|
0.01
|
|
0.05
|
|
0.06
|
Amortization of
intangible assets
|
|
0.14
|
|
0.03
|
|
0.53
|
|
0.31
|
Transaction costs for
business combinations(1)
|
|
—
|
|
—
|
|
—
|
|
0.16
|
Severance and
share-based compensation acceleration
expense(2)
|
|
—
|
|
—
|
|
—
|
|
0.16
|
Amortization of
inventory step-up at fair value(3)
|
|
—
|
|
(0.01)
|
|
0.02
|
|
0.06
|
Realized loss from
marketable securities(4)
|
|
—
|
|
—
|
|
—
|
|
0.01
|
Prior income tax
benefit adjustments
|
|
(0.04)
|
|
—
|
|
(0.04)
|
|
—
|
TLANDO Related
Adjustments
|
|
|
|
|
|
|
|
|
Gain on changes in
fair value of contingent liability(5)
|
|
—
|
|
—
|
|
(0.10)
|
|
—
|
Inventory
write-off(5)
|
|
—
|
|
—
|
|
0.03
|
|
—
|
Impairment charge of
TLANDO product rights intangible assets(5)
|
|
—
|
|
—
|
|
0.02
|
|
—
|
Income tax effect of
above adjustments(6)
|
|
(0.01)
|
|
(0.03)
|
|
(0.12)
|
|
(0.17)
|
Non-GAAP Diluted
EPS
|
|
$
0.82
|
|
$
0.48
|
|
$
2.77
|
|
$
2.21
|
|
|
|
|
|
|
|
|
|
GAAP & Non-GAAP
Diluted Shares
|
|
131,035
|
|
138,601
|
|
134,197
|
|
140,608
|
Dollar amounts, as
presented, are rounded. Consequently, totals may not add
up.
|
|
(1)
|
Amount represents
incremental costs including legal fees, accounting fees and
advisory fees incurred for the prior year Antares
acquisition.
|
(2)
|
Amount represents
severance cost and acceleration of unvested equity awards as part
of the Antares merger agreement.
|
(3)
|
Amounts relate to
amortization of the inventory step-up associated with purchase
accounting for the Antares acquisition.
|
(4)
|
Amount represents a
realized loss from the sale of our marketable securities to finance
the prior year acquisition of Antares.
|
(5)
|
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.
|
(6)
|
Adjustments relate to
taxes for the reconciling items, as well as excess benefits or tax
deficiencies from stock-based compensation, and the quarterly
impact of other discrete items.
|
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SOURCE Halozyme Therapeutics, Inc.