Good afternoon. My name is Tiffany, and I will be your conference operator today. At this time, I would like to welcome everyone to Halazine's third quarter 2025 Financial and Operating Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during that time, simply press star, then the number one on your telephone keypad. Please note this event is being recorded. I will now turn the call over to Trom Bui, Halazime's Vice President of Investor Relations and Corporate Communications. Please go ahead.

Thank you, Operator. Good afternoon, and welcome to our third quarter 2025 financial and operating results conference call. In addition to the press release issued today after the market closed, 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, Haley's I'm President and Chief Executive Officer, who will provide an update on our business, and Nicola Brass, our 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. 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.

Good afternoon, everyone, and thank you for joining us today. I will begin on slide three. I am very pleased to report another quarter of record royalty revenue of 236 million dollars representing a remarkable 52 percent increase year over year and resulting in total revenue of 354 million dollars representing 22 percent growth year over year. These results were driven by the continued momentum of our three established blockbuster subcutaneous therapies Darcelec subcutaneous, Fesco and Favgar Hytrulo. Adjusted EBITDA growth exceeded top-line growth, increasing 35% over prior year's third quarter to $248 million, reflecting the strength inherent in our royalty-based business model. Our core Enhance drug delivery technology continues to drive the significant momentum in our business and reflects a powerful and growing opportunity for subcutaneous delivery to reshape the future of healthcare. Enhance can allow treatments that once required lengthy infusions in hospitals or infusion suites to be administered in minutes more conveniently, including in the doctor's office and in the patient's home. For patients, it means less time spent traveling, fewer invasive procedures, and greater independence, all while maintaining efficacy and safety. At the same time, it is reducing the burden on the healthcare systems, lowering total cost of care, and freeing up capacity in hospitals and infusion centers. Turning now to slide four. Year-to-date, 13 of the 15 growth catalysts have been achieved, including new product approvals, expanded indications, reaching new regions, and achieving key reimbursement milestones across major markets. These new growth catalysts support our near- and long-term revenue opportunity. This quarter, there were two notable indication approvals for our two leading growth drivers. Firstly, Darzolex subcutaneous received European Commission approval for a new indication in smoldering multiple myeloma, providing another meaningful growth catalyst for the franchise. Smoldering multiple myeloma is a precursor condition to active multiple myeloma, expanding Darzolex subcutaneous reach into a new early disease stage patient population and potentially increasing treatment duration and the lifetime value per patient. And the second indication was Argenix's Vidura pre-filled syringe within hands, approved in Japan for self-injection for generalized myosinia gravis and chronic inflammatory demyelinating polyneuropathy. Delivered as a once-weekly, 30 to 90-second subcutaneous injection, Vidura can be self-administered at home, eliminating the need for lengthy infusions in clinical settings. The pre-filled syringe with Enhance is a key enabler of broader adoption because it simplifies administration, reduces treatment burden, and potentially enhances patient adherence. Rounding out the 15 growth catalysts, we project two additional meaningful U.S. approvals this year. One for DARS-like subcutaneous and smoldering multiple myeloma, and the second for Ribrovance subcutaneous in EGFR-mutated non-small cell lung cancer. I'll move now to slide five. Driven by the continued strong performance of our core enhanced technology, we are pleased to raise our full year 2025 guidance ranges. Driven by Royalty Revenue, we now project total revenue of $1.3 to $1.375 billion, reflecting 28% to 35% growth over 2024. Royalty revenue is now expected to go 49% to 54% to $850 to $880 million for the full year, primarily driven by our three established blockbuster subcutaneous therapies, Darzalic Subcutaneous, Fesco, and Vibgar Hytrulo within hands. We now anticipate adjusted EBITDA of between $885 million and $935 million, dollars representing year-over-year growth of 40 to 48 percent and we expect non-gap diluted earnings for sure of six dollars and ten cents to six dollars and fifty cents representing year-over-year growth of 44 to 54 percent moving now to slide six recently we announced the acquisition of electrify furthering our vision to enable at-home administration of biologic therapies this This strategic move supports our ambition to expand our portfolio of drug delivery technologies. With Electrify's innovative technology, we aim to extend subcutaneous delivery to a broader range of biologics, reinforcing our focus on patient-centric drug delivery technology solutions. By applying Electrify's HyperCon technology, concentrations of 400 to 500 milligrams per ml or as much as four to five times higher than many current conventional formulations can now be achieved this breakthrough technology will enable more drugs to be delivered at home via auto injector a treatment option we know is of high interest and demand for pharma and biotech companies particularly those working in inflammation and immunology neurology nephrology and oncology by bringing together now three innovative drug delivery technology solutions, enhance our auto-injectors and HyperCon, we will create a new commercial opportunity for our partners and further strengthen Halosam's role as a partner of choice in patient centered drug delivery, expanding our long-term growth horizon. Moving now to slide seven. Importantly, HyperCon is at a value inflection point. The three partner agreements in place have resulted in two products projected to enter the clinic and begin clinical development of the HyperCon formulation by the end of 2026 or earlier. Each of these two products, as a different formulation, is already approved and has achieved blockbuster sales already. With Halozyme's established expertise in subcutaneous drug delivery, we are well positioned to identify opportunities to accelerate the time to approval and to unlock significant new revenue potential through advancing new nominations and signing new agreements. The addition of Electrify's Hypercom technology further enhances our offerings, enabling us to provide best-in-class solutions and maintain strong momentum in transforming the subcutaneous delivery landscape. Now let me move to Flight 8, where I will review our current growth drivers for the quarter. Let me begin with Darzelex, which continued its exceptional performance this quarter. Sales for Darzelex increased 20% on an operational basis to $3.7 billion, primarily driven by the continued strong share gains of approximately 5.7 points across all lines of therapy, and nearly 9 points in the frontline setting, as well as through market growth. This marks the seventh consecutive quarter of frontline growth of five or more points, underscoring the continued momentum of the brand. With 96% share of sales resulting from the subcutaneous formulation with Enhance in the United States and more than 90% global subcutaneous share, Enhance is bringing value to patients earlier in treatment as they live longer on therapy. Darcelix is, and we project will remain, the gold standard of treatment for multiple myeloma, holding more than 50% market share across all lines of therapy. And there are two additional new catalysts that are projected to continue the strength of Darcelix subcutaneous. These include the recent European Commission approval of Darcelix subcutaneous for patients with high-risk smoldering multiple myeloma, which occurred in July, and it marked the first approved treatment for this early stage of the disease. We also anticipate potential U.S. approval for smoldering multiple myeloma following the FDA's favorable vote on the risk-benefit profile earlier this year. And separately, Johnson & Johnson reported positive top-line results from the Phase III Majestic III study, which further validated the role of Darzolex-Faspro in later lines of multiple myeloma treatment. The combination with Tecvely and Darzal X-Fastro in relapsed refractory multiple myeloma demonstrated at a planned interim analysis, a statistically significant improvement in both progression-free survival and overall survival when compared to standard of care for patients who had received one to three prior lines of treatment, highlighting once again the clinical value of Darzal X-Fastro with Enhance. These milestones add to the growing list of approvals and clinical successes that continues to expand the reach of Darzolex Subcutaneous and to support analyst projections for the brand to reach more than 18 billion dollars in 2028. And Halosime will continue to earn royalties on the subcutaneous formulation of Darzolex through 2032. Let me move now to Fezgo which is shown on slide nine. Fezgo continues to be Roche's number one growth driver with nine months revenue of 1.8 billion Swiss francs, or approximately $2.3 billion, reflecting a 54% year-over-year increase. In the third quarter, the increasing conversion from intravenous Progetta and Herceptin reached 51% in 78 launch countries, up five points from the prior quarter. Conversion of Progetta to Fesco is now projected to achieve 60%, increasing from the prior 50% peak conversion, and this is driven by the strong value proposition. We are pleased with Fezgo's growing adoption, with royalties secured at the full mid-single digit rate through 2030. I'll turn now to ViveGuard, which is shown on slide 10. ViveGuard Herthrilo continues to be a key driver of the exceptional growth of the ViveGuard franchise, with total sales of ViveGuard increasing 96% year-over-year in the third quarter to $1.13 billion dollars. The subcutaneous formulation enabled by Enhance has been instrumental in expanding access to new prescribers and patients across both approved indications of generalized myosthenia gravis and chronic inflammatory demyelinating polyneuropathy. Supporting both of these indications, the pre-filled syringe with Enhance, which was launched in April of 2025, is now approved in most major markets. By enabling self-injection in just 20 to 30 seconds, whether at home, in the clinic, or while traveling, this innovation has expanded access to new patient populations, simplified treatment logistics, and accelerated adoption in earlier lines of treatment for both GMG and CIDP. The pre-filled syringe has expanded the number of prescribers by 260 physicians, opening up new pockets of patients in GMG and CIDP. With approximately 50% of patients using the pre-filled syringe who are new to ViveGuard, Argenix stated that this is still the beginning of the growth curve for both indications. Argenix also stated that the project ViveGuard's total addressable GMG market could ultimately approach approximately 60,000 patients globally versus roughly 17,000 at launch. as the biologic opportunity expands and with the future potential addition of ocular and seronegative patient populations. I'll turn now to the CIDP indication. Argenix commented that they are seeing consistent growth in both patient start and prescriber engagement driven by physician trust in the safety profile of Avgar Hattrulo and its ability to deliver meaningful, functional improvements. The pre-filled syringe is driving additional demand, offering convenience of self-injection and enabling flexible administration. 85% of CIDP patients are switching from IVIG, and there is also early adoption amongst treatment-naive patients. Argenix believes they are at the beginning of the growth curve for CIDP and that they will see continued expansion of the prescriber base. Vivegart Houtulu's strong commercial success, growing approvals, launches in GMG and CIDP, and plans to expand its autoimmune disease indication footprint represent a compelling royalty growth opportunity for Halosam. We project Vivegart Houtulu will be a durable contributor to our long-term financial performance, with analysts projecting total Vivegart sales of $7.7 billion in Miocener Gravis and CIDP in 2028, and would hail as I am earning royalties through the early 2040s. It is truly remarkable how only these three products I've just described, Darslake Subcutaneous, Fesco and Vibgar Herthullo, are driving our 52% year-over-year growth in royalty revenue this quarter and will have continued growth opportunity for years to come. Moving now to slide 11, I'll review the progress of our recently launched products, which will begin to contribute meaningfully in 2026, beginning with Ocrevus. Roche reported continued strong momentum for Ocrevus, which represented 5.2 billion Swiss francs, or approximately $6.5 billion, up 7% for the first nine months of 2025. The company reaffirmed its expectation for high single-digit growth of Ocrevus this year. Ocrevus DeNuvo, which utilizes our enhanced technology, received approval in 2024 and offers a rapid 10-minute subcutaneous injection, a significant improvement over the multi-hour intravenous administration and monitoring process. The subcutaneous formulation of Ocrevus is a key growth driver for Roche's neurology franchise. It enables penetration into community neurology practices and rural areas where IV infusion capacity is limited, which unlocks access to previously underserved patient populations. More than 12,500 patients are now on the subcutaneous formulation globally, representing more than a 75% increase from the 7,000 patients receiving subcutaneous Ocrevus that we reported last quarter. uptake is also increasing in the united states following the permanent j code which was granted on april 1st which is simplifying reimbursement and enabling broader adoption in the united states approximately 800 health care providers are now prescribing okra vista nuvo within hands and 60 of the subcutaneous volume is coming from community practices demonstrating strong traction outside the traditional site of academic centres. 50% of Ocrevus renewal patients are new to brand, indicating market expansion beyond IV conversion. In early launch countries like Germany, similar trends are being observed, reinforcing the enhanced formulation's ability to grow the overall Ocrevus patient base. Rochentis-based, the subcutaneous formulation to represent an incremental $2 billion opportunity, while analysts project the total Ocrevus brand opportunity will reach $10 billion by 2028. We're pleased with how Ocrevus Anubo, powered by our enhanced technology, is transforming the multiple sclerosis treatment landscape with its rapid 10-minute subcutaneous delivery, unlocking new patient access, accelerating adoption across community practices, and driving meaningful franchise growth. Helazine will earn royalties on the subcutaneous formulation at the full mid-single-digit royalty rate through 2030 and at a step-down rate until at least 2034. Let me turn now to Roche's Ticentric Hybrisa with Enhance. Ticentric Hybrisa was approved in the United States and Europe in 2024 for all of the IV indications, offering patients and providers a more convenient seven-minute subcutaneous injection. Roche has stated its strategy is to drive conversion from IV to subcutaneous use. Tecentrate generated 2.6 billion Swiss francs in revenue for the first nine months of 2025, or approximately $3.3 billion, and analysts project revenue of approximately $4.5 billion by 2028. Halozyme earns royalties and net sales of the subcutaneous formulation at the full mid-single-digit rate through the 2040s, underscoring the long-term value of this partnership. Let me move now to Bristol-Myers Squibb's Obdivo. In the third quarter, global Obdivo sales reached approximately $2.5 billion, reflecting a 6% year-over-year increase, driven primarily by strong demand. The U.S. launch of Obdivo Quantage with Enhance is progressing well, with growth fueled by the continued use of Obdivo Quantage across all of the indicated tumor types, as well as the permanent J code which was received in the quarter. Sales in the third quarter were 67 million dollars, a doubling from 30 million dollars in the second quarter. Opdiva Quantage offers the convenience of a three to five minute subcutaneous administration and the flexibility of outpatient infusion, features that are driving growing adoption among both patients and providers across all of the indicated tumor types. Based on the strong year-to-date performance of Updivo and Updivo Quantage, BMS now expects stronger growth than previously guided, with sales expected in the high single-digit to the low double-digit range for the full year. Analyst forecasts total brand sales of $9.5 billion by 2028. And let me move now to Ribrovent. Ribrovent continues to demonstrate strong growth. In the third quarter, Johnson & Johnson reported total Ribrovent IV and SC revenue of $198 million, reflecting triple-digit year-over-year growth. The European approval of Ribrovent subcutaneous with Enhance in April marks Halen's 10th commercialized partner product and is a key milestone in our global expansion. The subcutaneous delivery of Enhance provides the strong efficacy profile of IV riboband while reducing administration time from multiple hours to just minutes and results in a five-fold reduction in the potentially serious adverse event of infusion-related reactions when compared to the IV formulation. J&J's strategy to simplify treatment and enhance patient convenience is resonating with physicians for use in combination with Lizetronib in the first-line treatment of adult patients with advanced EGFR mutated non-small cell lung cancer and for the same population following failure of a platinum-based regimen. Ribrovan is an important brand for Johnson & Johnson, who are continuing to invest in clinical studies to demonstrate the full potential. Recently published results in the New England Journal of Medicine from the Phase III Mariposa study reported that Ribrovan plus Lazzetronib significantly reduced the risk of death when compared to osimetronib, which is the current standard of care in EGFR-mutated non-small cell lung cancer. Recall, osimetronib is marketed as Tergriso by AstraZeneca and generated $6.6 billion in global revenue in 2024, which underscores the potential commercial opportunity for Ribrovan. And at ESMO 2025, Johnson & Johnson also presented new data in a different high-unmet need patient population from the Origami-4 study, showing that subcutaneous amivantimab, enabled by enhanced, achieved a 45% overall response rate in patients with recurrent or metastatic head and neck cancer. These results could mark a turning point in the treatment paradigm and certainly could provide further support for Johnson & Johnson's statements that Rybrovent will be a $5 billion product. Dementalizing all of the opportunity for Halozyme, our three blockbusters that are driving today's strong growth, Darzalex, Fezgo, and FiveGarp, represent an approximately $30 billion in TAM opportunity in 2028. What is very exciting is that these neural launches I've just described also represent an additional approximately $30 billion in opportunity in 2028. With the recent approvals, our total opportunity doubled, setting the stage for our strong continued royalty revenue performance. Our portfolio of 10 launch products is well positioned to deliver $1 billion in annual revenue in 2027. And this milestone reflects the strength of our long-term strategy and our partnerships. Importantly, we anticipate sustained royalty contributions from all products through at least 2030, with several extending into the 2040s, ensuring a robust and durable revenue Let me turn now to slide 12, and I'll review the development opportunities that are not reflected in our royalty revenue projections to date. We have eight programs that are currently in various stages of clinical development, with two additional programs anticipated. Among the most advanced opportunities are Bristol-Myers Squibb's subcutaneous nivolumab with reletlimab and Takeda's TAC 881, both of which are in phase three development. These programs represent potential new royalty growth opportunities beyond what is currently reflected in our forecast through 2028. And let me now turn to our progress in new deals. I have said before that we will sign a new Enhance Agreement this year and remain confident that we will. This confidence is supported by the stage of the discussions we are having and the proximity to finalization. Interest in Enhance is strong as more companies seek meaningful competitive differentiation. And on our two development auto-injecture agreements, I am pleased to say we are making progress and project completion of planned human factor studies by mid-2026. With that, let me now turn the call over to Nicole.

Thank you, Helen. Our strong third quarter performance continues to reflect the momentum of our core enhanced technology. Total quarterly revenues grew by approximately 22% to $354 million, with royalty revenue increasing 52% to $236 million. Suggested EBITDA grew 35%, outpacing top-line growth and showcasing the exceptional leverage of our high-margin, royalty-driven model. Let me start on slide 13. We continue to generate robust cash flow, which supports our balanced capital allocation priorities. Year-to-date, we repurchased $342 million of shares, with $158 million remaining under the current authorized plan. Since 2019, we have returned approximately $1.9 billion to shareholders through repurchases, representing greater than 100% of cumulative free cash flow over that period. We have a strong balance sheet with cash, cash equivalents, and marketable securities of $702 million on September 30, 2025, compared to $596.1 million on December 31, 2024. The increase was driven by an increase in cash generated from operations, primarily offset by share repurchases. Our net debt-to-EBITDA ratio was 0.9 times at the end of the third quarter. As Helen mentioned, we announced her acquisition of Electrify in the third quarter, a transaction that strengthens our leadership in drug delivery and complements our strong organic growth opportunities. We are pleased that the acquisition is expected to have a minimal increase in our net leverage, estimated to be at approximately two times net debt to EBITDA at closing. Our goal is to delever in the subsequent quarters supported by our robust free cash flows. Let me now turn to our detailed third quarter results on slide 14. Total revenue grew 22% to $354.3 million, compared to $290.1 million in the prior year period. Royalty revenue of $236 million increased by 52%, from $155.1 million in the prior year period. The commercial success of Subcutaneous Darzlex, Sesgo, and Vivgart-Hitrulo continue to drive robust royalty revenue growth. Product sales of $94.2 million increased by 9% from $86.7 million in the prior year period, mainly driven by the contribution from proprietary product sales. Collaboration revenues of $24 million compared to $48.4 million in the prior year period. The difference was primarily due to the timing of milestones achieved. Research and development expenses were $17.3 million, compared to $18.5 million in the prior year period. The decrease was primarily due to lower compensation expense driven by resource optimization and labor allocation initiatives, offset by the timing of planned investments in Enhance related to the development of our new high-yield RUPH20 manufacturing process. Selling, general, and administrative expenses were $46.1 million, up from $41.2 million in the prior year period, primarily due to increased consulting and professional service fees, partially offset by compensation expense. Adjusted EBITDA increased by 35% to $248.2 million, from $183.6 million in the prior year. GAAP diluted earnings per share was $1.43, and non-GAAP diluted earnings per share was $1.72. This is compared with GAAP diluted earnings per share of $1.05, and non-GAAP diluted earnings per share of $1.27 in the third quarter of 2024. Turning now to slide 15. Based on our strong performance year-to-date, we are raising our guidance ranges for the full year. As a reminder, our expectations exclude the impact of the accounting treatment of the electrified transaction. The final determination of whether this transaction will be accounted for as a business combination or an asset acquisition will be determined at the close. We now expect total revenues of $1.3 to $1.375 billion, representing year-over-year growth of 28 to 35 percent, driven by an increase in projections for royalty revenues. Royalty revenues of $850 to $880 million, representing year-over-year growth of 49 to 54 percent. We continue to expect Darzal XSC, Fesco, and Vivgart Hytrulo to drive the strong expectations, with Vivgart Hytrulo being the largest royalty-dollar growth driver. Product sales of $340 to $365 million, representing year-over-year growth of 12 to 20%. Collaboration revenues of $110 to $130 million. Adjusted EBITDA of between $885 and $935 million, representing year-over-year growth of 40 to 48%. A non-GAAP diluted EPS of $6.10 to $6.50, representing year-over-year growth of 44% to 54%. Regarding the future financial expectations of our acquisition of Electrify, we continue to expect the transaction to be less than 5% dilutive to non-GAAP diluted EPS over the medium term, excluding potential milestone payments related to the programs in development, which could offset dilution, prior to the projected royalty revenues in 2030 and beyond. We also expect full-year 2026 incremental operating expense of approximately $55 million. With that, I'll now turn the call back over to Helen.

Thank you, Nicole. In closing, our third quarter results reflect the continued strength of our core enhanced business and the accelerating momentum across our partner portfolio. With 10 launch products, a robust pipeline of future royalty streams, and the addition of the Hypercom technology, we're well positioned to deliver strong revenue and shareholder value for years to come. And let me just close with a few words on Nicole. While Nicole will be with us on our fourth quarter call in February, I did want to take this moment to thank Nicole for her many contributions to HaloZine. These have really helped us accomplish our growth strategy to date. Throughout this time, Nicole has helped design and lead multiple financing transactions that provided the capital that enabled the strong growth that you see today. Nicole will be transitioning to a new opportunity in 2026 when a new CFO is hired or by March 30th, 2026. Operator, with that, we are now ready to open the call for questions.

At this time, if you would like to ask a question, press star, send the number one on your telephone keypad. To withdraw your question, simply press star one again. We will pause for just a moment to compile the Q&A roster. Your first question comes from the line of Sean Lehman with Morgan Stanley. Please go ahead.

Good afternoon, Helen. Hope you're well. Yeah, on capital allocation, You're two times levered now. How do you think about paying down debt, getting an even more conservative balance sheet and weighing that up against potential buybacks for next year and what opportunities electrify-like opportunities there might be out there? That's the first question. And then the second part would be, how are investors going to be able to monitor the performance of Electrify going forward?

Yeah, so I'll start by just saying with regard to opportunities like Electrify, we are continuing to look for those opportunities, Sean, because we do believe that we're in a great position to be the partner of choice for our pharma and biotech partners as they're looking to optimize the patient treatment experience. So keeping looking, and obviously we will transact when we do find appropriate things. Let me ask, though, Nicole, to comment on the capital allocation and the plan to delever.

Thanks, John. So we do have robust cash flows and cash growth in the coming quarters. And so while we will have a modest draw on our credit facility to fund the Electrify acquisition, we do expect to pay that down in the coming quarters and to delever very quickly. And so what you've seen us be able to do this year is have capital to fund share repurchases. We've done $342 million within the year and be able to fund the Electrify acquisition, and you'll see us continue to have that balanced approach going forward.

All right, and, Sean, the last part of it, how to monitor the success of Electrify. I'm going to give you three metrics there. One is we are anticipating the potential for two partner first in human starts, both with already blockbuster products in their current formulation. That will happen by the end of 2026 or before. So that will be the first metric. I do think as we work through working with Electrify closely, we'll be finding opportunities to develop and be able to communicate a streamlined development plan approach, which we see as another benefit of bringing our two expertise together. And then the third one, we will continue to look for Electrify and support the advancement of Hypercon with the current partners potentially agreeing to move more products into the clinic from their open nomination slot or indeed signing new deals. And so we're very excited about the Electrify acquisition. I'm still in the planning phase, obviously, at this point in time, but we see great opportunity for the business synergies that are going to come from being able to bring our two companies together.

Wonderful. Thank you, Helen. Thank you, Nicole. Appreciate it.

Your next question comes from the line of Jason Butler with Citizens JMP. Please go ahead.

Hi. Thanks for taking your questions, and congrats on the quarter. Let me pass my congratulations on to Nicole as well. It's been great. So let me start on Electrify. Understanding that the deal hasn't closed yet, can you talk about what you think the awareness level of the company and the technology is with your current enhanced partners and just any feedback you've gotten from partners on the company? And then second, on Acrevis, Can you talk a little bit about where market growth is coming from? Are they taking share from other therapies? Are they getting used earlier in treatment? Just how should we think about how that market opportunity is growing?

Yes, thanks. With regard to the knowledge level of our current partners for Electrify, I can say we're only aware of that really by the diligence we've done because we're still at a stage of we're not talking about Electrify and they're not talking about us, obviously, given that the HSR review hasn't closed. But I would say just based on our diligence and market research we did prior to the acquisition, there is a good awareness of the Hypercon technology, but obviously one of the benefits of bringing our companies together is to elevate that awareness and broaden that awareness within each of the companies based on who we're each talking with. We've received small amounts of spontaneous feedback. Again, I think people are being thoughtful and cautious that the deal hasn't closed, but a number of our partners, particularly the ones who are working with both companies, have provided feedback that I would say signals strong support for the additional opportunities that might exist of being able to work across both of our platforms. So definitely resounding support from everything that we are hearing out with regard to that. On Ocrevus, yes, based on the comments that Roche made on the last call, obviously delighted to see that they grew 5,000 patients from the 7,500 patients on therapy. That was the number in the second quarter. They are saying that in U.S. and Germany in particular, 50% of the patients are new to brand. And Jason, I didn't hear them say exactly where those patients were coming from. So I don't know if it is brand new to treatment patients or it is switched from other therapies. We haven't been provided that level of granularity. But what I do obviously think is terrific to know is that this is expanding the market footprint for Ocrevus exactly as Rochette anticipated. No allowing patients to be treated in physician offices, community hospitals, and opening up access that was a bit restricted before because of the capacity constraints and infusion suites. So sorry I can't answer that specifically. If we do find out about that, we will make sure to update on the next call.

Okay, thanks.

Your next question comes from the line of Michael DeFiore with Evercore ISI. please go ahead.

Hi, guys. Thanks so much for taking my questions, and congrats on the continued progress.

Two for me.

The first, I want to expand upon the M&A question that was asked before. Obviously, your press release said in no uncertain terms that the next chapter of growth will include M&A, and I guess my question is, how high are you willing to lever up for this transaction? And I know you said that we could expect for you to delever it in the next few quarters. And so I guess the ultimate question is, could we possibly expect another transaction towards the end of the year? And I have a follow-up.

Yeah, thanks for that, Mike. Obviously, our focus at the moment is completing the Electrify acquisition. And so I think I can say that it's unlikely there will be another acquisition this year. But we are actively looking because, you know, we do want to be able to continue to add to our growth and our momentum that is so strong at this point in time. Noam, Nicole, will you comment on the approach we're taking to leverage?

Yeah, and as Helen noted, while we will evaluate targets, I can say from a firepower perspective, we do have the capacity. We're willing to go up to three times net leverage. We mentioned with this transaction at close, we expect to be at about two times, but that will quickly come down. And so there will be capacity. And again, we'll just be patient and find the right next opportunity.

Yeah. And I think just to kind of emphasize what Nicole said, you've seen us demonstrate a lot of patience in terms of finding the right asset, doing the appropriate diligence and seeking to only transact and make a formal offer to the company once we have completed all of that. So we will take that same very thoughtful approach. We're in a great growth position. We're excited about the growth that's going to come from Electrify. So don't think of this as something we're rushing into. We're just going to continue to execute the strategy we've had in place for the last several years.

And because of our strong cash flow we're in a position to contemplate that in 2026 but only if um we find it meets our our criteria and is the right next move for for halozyme thank you for that helen and my follow question is um again i know it's super early regarding uh electrify and and but on the prior call um i think i asked about um the potential to combine in hands with hypercon and i think Mike, you had said that feasibility studies regarding the combinability still need to be done. When might we see such studies be conducted? And, yeah, I'll just leave it there.

Yeah, thanks, Mike. Yes, it is something, obviously, that we are interested in, and it is one of the work streams that will be one of the early conversations that we're going to have between the technical experts from both companies to determine what the path would be for that. But I think my more important message is each company has its own pipeline of ongoing conversations for a great fit for each of our technologies to different partner products. And so that is where the initial focus is going to be, just based on the fact that for those people who are seeking a more high volume rapid delivery in hands is the way to go if they are wanting a potential for an auto injector in the patient's home perhaps the electrify technology and hypercon is going to be a better one you will see the initial focus most assuredly being on pursuing those two successful strategies to date we're interested to see can they come together but we don't have to wait for that data the strategy will be to pursue each of them separately as we know there's opportunity for them individually.

Thanks again.

Your next question comes from the line of Jessica Fye with J.P. Morgan. Please go ahead.

Hello, this is Adam on for Jess. Thank you for taking our question. I really just had two. Can you share your latest thoughts on potential for new enhanced deals in your term?

I think you mentioned one in the prepared remarks, but any details around that? and second which product or products contributed the most to the guidance upside this time around thank you yes let me take the first one and then Nicole will talk about the guidance Adam with regard to new deals I did say in my prepared remarks we're very confident to have a new deal this year that confidence comes from proximity of to completion of discussions we have several discussions that are ongoing and so it isn't our practice to pre-announce anything but all I can say is that we're excited with the continued interest in hands and whichever of these conversations we've crossed the finish line first. We're very excited and think it represents a great opportunity for patients but also for Halazime. Nicole, would you talk about the guidance?

So our guidance is driven by the strength of our royalties and we continue to see royalties being very strong in our main royalty drivers, which are VivGart Hytrulo, Fesco, and Darzelex. And I'll also point out, just recall that Darzelex and VivGart Hytrulo both had new indications launching this year. As you are aware, first-year launch estimates are notoriously hard to project exactly, and that's where we're seeing the upside and reflecting that now, given that latest data trend in the full-year projections.

Thank you very much.

Your next question comes from the line of Mitchell Kapoor with HCW, please go ahead.

Hey team, thanks for taking the questions. I wanted to ask about, you know, forward guidance, of course, you know, recognizing that you only formally update the five-year guidance once a year. We're getting close to 2026, so wondering, you know, with the strong momentum that we have been seeing quarter to quarter and the subsequent guidance raises for this year how you're thinking about maintaining that growth into the next few quarters in 2026 does the current trajectory suggest that the previous 2026 ranges might already be tracking towards the upper end of what was outlined earlier last this year thanks yeah thanks mitchell um so we will be able to provide more details on that in early in 2026 when we are able to really collect all of our trends and input from our partners comes in towards the end of the year.

So, more details to come, but we are tracking, as you can see, to exceed 2025 original expectations, but we will be able to reflect the latest information when we give full year guidance and update in the new year. okay great and then the second one is just on how you're doing conducting outreach uh for prospective partners between in hand and hypercon are these parallel tracks or how do you kind of discuss those with prospective partners yes thanks mitch at the moment until the hsr view period is completed our two businesses are operating separately we can have conversations

about planning as to how we're going to operate together, but we do not share any information with regard to partners each of us is talking to or anything like that. So I would expect upon completion and the close, which we do expect to happen in the fourth quarter, we will be in a position to have conversations and identify who's talking to whom. But at this point in time, that's not something we are aware of or want to share. We're each pursuing our own separate conversations and targeted outreach. Again, each of the products works in a slightly different space. All of them are for sub-Q delivery, and Hans is more focused towards the larger volume, which is often in the doctor's office or occasionally at home, whereas the opportunity with Electrify is a bit more focused at that at-home potentially auto-injector delivery because the volumes can be potentially reduced to as low as 2 mL. So I would expect we may have, we're talking to the same companies, but probably not talking on exactly the same products, which is why this is such an attractive deal, expanding our CAM, because each of them is going to have a different best use case. And that's what I expect to see when we're able to talk in more detail.

Great. Thank you, and congrats on an impressive quarter.

Thanks, Mitch. Your next question comes from the line of Brendan Smith with TD Cohen. Please go ahead.

Thanks for taking our questions. And congrats on the corner as well. Maybe just a couple quick ones from us. First, actually, on the auto-injector business, can you maybe just remind us what the development path there is looking like and how we should think about economics and timing of that over the next couple of years? if you think that would be compatible with Hypercon or that would require something different with separate validation. And then just maybe quickly on the earlier pipeline, can you remind us when we can expect updates from the Vive and Acumen products? And if you disclosed anything about those economics that we should make sure that we flag as we try to think about royalties for the next wave of enhanced drugs. Thanks.

Yeah, thanks, Brandon. With regard to the auto injector business, so the small volume auto injectors are obviously for products that are 2.25 mLs or less, and there is an immediate applicability and use with the Hypercon products if a partner is developing that. So those are basically, there's some customization that's possible, but for a partner who wants to integrate it into their development, that's pretty straightforward. With the high volume out injector, we have progressed to having very strong clinic ready prototypes that are able to be integrated into development plans now. And so for a company who is wanting to use those, that is also going to be pretty straightforward for them to put into whatever clinical trial they're going to do to test it and start doing the development. The actual separate development you need for a device can all happen in parallel to the clinical development. You've got to do stability studies. It's usually human factor studies, but that is usually all happening in parallel to what's the traditional clinical pathway and integrated into a single filing. So I would say we're in a great position for partners who want to use Hypercon to be using either small volume or high volume auto injectors and integrating them immediately as soon as they want to be able to do them. On the economics, if you recall, for the auto-injectors, this is much more of a business model where for the small volume auto-injector, it is generally a cost model where there's a certain charge per device. For the high volume auto-injector, it will, because of the size of injection, need to be used within hands. So we think of those as being associated with royalties because of the need to have in hands used with them. but they will also come with a cost per device, adding additional revenue there. Brendan, did that answer your question on that, and I can move to the pipeline?

It did, yeah. That'd be great.

Thanks. Okay. So with regard to the earlier pipeline, there haven't been any public updates from VEV or from Acumen in the last couple of quarters, and so we're not in a position of being able to share any additional information. The last update from Acumen, as you probably are aware, was that they had finished their Phase 1 testing. And so that was great to see, and they reported the results actually publicly. But we're awaiting being able to provide any updates beyond that. On the economics, when the deals were announced in the press releases, insofar as what was permitted to be made public, it does include some high-level description all of the milestones and royalty structure of these agreements, Brandon. So I would recommend if you could maybe just go back and look at those, you'll get a bit of color, not granular, but a bit of color that might be helpful.

Okay, great. Thank you. Thank you.

Again, if you would like to ask a question, press star 1 on your telephone keypad. Your next question comes from the line of Corinne Johnson with Goldman Sachs. Please go ahead. Corinne, your line is open.

Hi, good afternoon.

Maybe following up on some of the BD commentary earlier, I guess, how do you think about whether you currently have the partnerships you need to drive revenue growth kind of into the next decade, particularly as some of the key products like DARS, WACS, contracts terminate in that early 2030s period, and given there's a five-year development timeline for new partner products thanks yeah thanks corinne um let me start by saying for each of the products that are in our development um we kind of group them into three groups now we've got the current blockbusters and i think what's the first thing to note about those is um those products and nicole commented on it vivegar and darzlex are um having new indications every every year at this point in time, which is super in terms of driving their continued growth for a period of time. We talked about Darzalex with smoldering multiple myeloma with Firstline, which is why, despite that being a product that's been in the market now for many, many years, it's still putting up 19%, 20% year-over-year growth. And we do are excited to see that continue to grow for years to come. ViveGuard is a very implicit one. That's very early in its life cycle. And obviously, all the growth we're seeing today are driven by GMG and CIDP. But next year, as you're aware, there's going to be readouts in thyroid eye disease, ocular myasthenia gravis, myositis, and phase two data in systemic sclerosis. So we think of ViveGuard, where we get royalties out to the 2040s, as being an incredibly valuable growth engine for multiple years to come. And then if we go to the second block, which are the most recently launched ones, so Ocrevus and Updivo and Ticentric and Amivantimab, those are also just at the beginning of their growth trajectory where we expect growth for many years to come, given they are just at the start. And in many of those cases, we've got royalties going out, certainly well into the 2030s and in some instances into the 2040s. So that's another set of sustainable royalty revenue streams. And then behind that, let's look to our development pipeline. The products are in phase one, two, and three. So they're going to have different timings for launch. Some of them potentially launching before 2020, other ones shortly after 2028. So again, another set of new royalty streams adding in in that. And, you know, your point of the five years really does say that for any new deals we sign now, which we're very actively working on and have new products starting next year, those have the potential to be launching in the early 2030s, adding, once again, new wealthy revenue streams. So we continue to be very excited by these, not just waves, which are a very important part of it, but within several of our products, they are being developed in a way that is having them grow and grow beyond probably what we all thought initially because of the value of the new indications and the investments in the companies are making to have these become truly mega blockbuster drugs. So that's the way we think about it, and that's what we work towards, just wave upon wave of new royalty revenue.

Thank you. Ladies and gentlemen, this concludes HaloZone's third quarter 2025 financial and operating results conference call. Thank you all for joining. You may now disconnect.