Halozyme Therapeutics, Inc. (HALO) September 2026 Conference Transcript

Good morning everyone. I'm Sean Larman, Head of US MidCAP Biotech Equity Research here at Morgan Stanley and welcome to Morgan Stanley's Global Healthcare Conference. Before we commence, I'll make you aware of some important disclosures. For those disclosures, please go to the Morgan Stanley Research Disclosure website at www.morganstanley.com forward slash research disclosures and if you have any questions, please reach out to your Morgan Stanley sales representative. For this session, we have from Halazime Therapeutics, Helen Torley and Darren Snellgrove. Welcome to the both of you, and thanks for your time.

I appreciate it.

Maybe just to help me out here and start with some macro questions, and I guess, you know, how is the China origin innovation story, you know, changing your competitive positioning, if at all, and, you know, is it influencing your R&D and BD playbook?

Yeah, for Hale and Rheim, I think where China is impacting us is obviously a lot of our large partners and partner targets are highly engaged with China in seeking to expand their pipeline. So that simply expands the opportunity for us. Very recently, we have signed our first deal for ADCs, and I really look at China as having a lot of innovation in ADCs. And so we look at that as a pretty important market expansion opportunity for us. So in terms of Hilozyme, China is really all upside.

And are you implementing AI adoption across your business? And if so, can you point to a specific area where it's saved a cost, increased the POS, changed the timeline?

Yeah, Darren's going to address that. He has recently joined the company as our new CFO just a few months ago and has really brought a lot of knowledge and expertise, particularly in that area from J&J, so I'll ask him to comment.

Absolutely. So AI is definitely very much in action at Halozyme. Maybe I can give a few specific examples. First of all, we're using it for our scientific publications. We've been able to save about $50,000 per publication, do them about two to three times faster. In manufacturing, we have a system that basically allows for more uptime and prevents downtime in terms of the manufacturing side of things. And then in our business development, we're able to do landscape analysis about 30% faster than we have in the past. So we're definitely seeing the pull through. You can tell that it's really taking root at Halozyme. We had an off-site meeting a few months ago, 70 new ideas brought forward by the employees. So it's amazing to see how much it's taken root. And we're tracking the financial impact as well. So it's something we're paying close attention to, how much we're investing, what kind of returns we're getting from the AI projects. Most importantly, we're tracking the efficiency and the effectiveness of the programs, which I think at the end of the day is what's most important.

Darren, if I can just give an example that just blew my mind last week. One of the things we're doing is pairing operational effectiveness and AI together because that's really where the value of creation is added. And so we were wanting to map some of our processes that relate to early development of one of our technologies. Rather than the weeks-long people sitting in rooms doing post-it notes, our team brought in videotaping of people doing the process, then paired it with one of the AI process maps, and what normally would have taken weeks to do spat out in days a very comprehensive set of process maps that can be used for training, for continuous improvement. It just is, I would never have thought that you could bring those two together. It is amazing what AI can do, and we really are expecting and seeing adoption across the entire company, but always with a human in the loop and always appropriate controls.

Sure, thank you, Helen. And which policy variable is it, like FDA, Medicare negotiations, MFN, tariffs, or global pricing matters most to your economics? and what have you changed, if anything, because of it?

Obviously, in that list, there isn't clarity on final policies on all of them, Sean, so I'll comment on the ones where we do have a lot more clarity, and I would say for Medicare price negotiations, but particularly as it relates to IP2029, we have little to no impact, which is terrific that that draft policy has come out and brought, I think, very strong clarity to that topic. I'd also say for tariffs, because of the way our contracts are done, and the where products are distributed in the U.S. We have no tariff impact either. Obviously, on the global pricing, MFN, there just isn't clarity yet to be able to comment on those areas. I was listening yesterday, though, to Carl, the CFO for Eugenics, and I think we absolutely believe and are pursuing the same thing they are. Innovation, even in a challenging pair world, will always be recognized. And we certainly demonstrated with our subcutaneous therapies significant savings to the healthcare system, patient out-of-pocket, all of that and so we will continue to pursue innovation and that will result in longevity and durable royalty revenues for Halozyme.

Sure, thank you. Maybe really to drill in on the business, so very strong Q2 performance, you raise guidance across all four metrics, you know, what are the biggest swing factors in the second half.

Yeah, we were delighted by the second quarter performance, which as you point out, was very strong. It was actually record revenue, 50% up year over year, to $308 million. What we have seen is that the key value drivers and inflection points for new growth have actually occurred in the first half of the year, Sean. So we're going to really be relying on the commercial execution by our partners to be driving royalty revenues in the second half. Let me give a couple of examples of those drivers. In March, we were very excited to see that Johnson & Johnson added another new indication for Darzlix Fast Pro, this time with Tech Valley setting a new standard of care for second-line patients. They already have more than 10 indications. This is yet another earlier-line treatment, and that's going to be a continued growth through the second half. Also, in the second quarter, Vibegar Hytrilo got its label expansion for zero negative. That increases the addressable market by another 20%. So these value-creating events have already occurred. It's really just going to be the commercial execution, and we've obviously taken that into account and have strong confidence in our second half and full-year 2026 guidance as a result.

Thank you. How would you classify the concentration of the royalty base today, and how do you see that evolving as we move towards 2028?

Yeah, we just talked about Vivegar Hattulo. The launch of Vivegar Hattulo and its amazing commercial success where it grew 60% as a total brand year over year with that really largely driven by subcutaneous to $1.5 billion and a quarter total sales has really been an important diversification. So we already are highly diversified. One of the other highlights of the second quarter was our newer launch product, which includes Okravis subcutaneous, Subdivo subcutaneous, and Ribrovant, grew 80% quarter-on-quarter. And so we always talk about Enhance as a compounding platform engine. And it sees multiple launches and these multiple additional diversifications of the revenue streams that's resulting in such an attractive, durable, long-term royalty revenue story for us, Sean.

Wonderful. Maybe looking a little bit forward, so with respect to the royalty streams, which ones begin stepping down first? And how should investors think about the shape of the royalty streams beyond 2030?

Yeah, if we think about, and just coming back to what's unique about the enhanced technologies, and I talked about enhanced being a compounding platform engine, But behind that, we have HyperCon that we intend to make into a similar attractive compounding platform engine and then surf that bio. And so we really think about the right way to think about our businesses that we're going to be just creating layer upon layer of royalty revenue that even if there were some steps, these new royalty streams and the growth of these products is going to be able to fill that in and continue a durable long-term royalty revenue story for our Halozyme. So the way we think about the shape of the curve, if you like, that we're asked about, you're going to think about our current 10 launch products, where there is still strong growth of many of those products to come. You layer on top of that the, we've got 13 enhanced products in development today, but that's just the beginning. We're going to be layering on top of those ones that ultimately launch and give royalties. And then there's HyperCon, where I'm sure we'll talk about also is going to layer on royalties. So it is our goal with this pattern of layer upon layer of royalties compounding the growth of the platform, Sean, that is allowing us to have a goal, which is to bend the curve in terms of what the shape of our curve is going to be.

Sure, thank you. And with respect to your long-term guidance out to 2028, do you or do you not include future product launches in that guidance?

Our current guidance, as you note, goes out to 2028, and it's just the 10 currently approved products that are in there, and only the approved indications that are in that long-term guidance. You may be asking Darren to comment. We have provided an update to our 2026 guidance, but there's more to come in terms of updates there.

Yeah, I think we're really looking to see how the new launches take off. We obviously have Ribrovan, Ocrevus, Subdevo in the early uptake of those launch curves. So we want to see more data points on those to know they've grown 80% quarter over quarter in Q2. So they're on a really strong trajectory, and so we're waiting to have enough information to be able to update long-term guidance. Sure, sure. Thank you.

And what's your timing around that? I think it used to be, correct me if I'm wrong, under Nicole, was something like you typically updated it in the new year, so you just wanted to deliver the full year, and then you typically updated it in the new year. Is that still the kind of thinking? Yeah, assuming we have the information we need, I think that's reasonable. Got you. Thank you. And you do have a number of products, I believe, to launch next. Maybe characterize some of the growth that we could expect if we can.

Yeah, I think in terms of new indications, certainly, that's the exciting thing about the products that we work on. But in terms of new launches, there may be one next year with others carrying in 29, 30, 31, 32 for enhanced. And there'll be multiple launches in that period of time because we've currently got 13 products that are expected to be in development by the end of this year. But we're also very excited to be, at the beginning of 2027, entering the clinic for our first HyperCon clinical studies, which are projected to launch in the 2030-31 time period. And, you know, we talk about 13. Just to be very clear, that number is going to constantly change and increase. just because of the dynamics of our business with partners and new partners all looking to advance products to get the commercial benefits to them and the patient benefits for going sub-Q with one of our technologies.

Sure, thank you. And maybe on the division of business development, the deal engine, you have five agreements here to date against a full-year goal of three with Vertex, Aruka, GSK, Insight and an undisclosed nucleic acid partner. What's that pull forward or generally high run rate?

Yeah, we're very excited to have five new deals signed this year, and we continue to expect at least one additional deal this year. I will say, Sean, the metric I more focus on is the actual progress into the clinic. How many products are getting into the clinic? Because as a company, it's really the royalties that matter for us. So we look at new deals as a metric because the current ones can result in new partners entering the clinic and new royalty streams. We will constantly work hard to get new deals. And the interest in sub-Q delivery of biologics, particularly in inflammation and immunology, nephrology, gastroenterology, CNS, is at an all-time high. I've never seen as much incoming interest. And so that's what gives me confidence we're going to expand even more in terms of new deals. But then people will often forget and maybe even underestimate the power we have by having such a large install base of great partners. Because all the time we have these partners adding new products that are nominated and move into the clinic. Let me just give you two examples, I think, to illustrate that. We signed a deal with GSK this year. That's our first deal with an antibody drug conjugate. That is a market that is largely untapped for sub-Q delivery, and we're leading there because of the great data we generated that's already resulted in IP. And so we're expecting GSK to be moving to the clinic this year to be testing the premise that with Enhance, you can lower the CMAX versus the IV, maintain the overall exposure, and still get an improved risk-benefit profile. And that data, we believe, will help further expand that opportunity. Pfizer, a long-standing partner for Halozyme, as I just recently posted on clinicaltrials.gov, they've moved forward for their tri-specific antibody, telrecimib, which is in skin disease, to be able to evaluate and enhance in that setting. And we haven't got a product that's a tri-specific yet, so that's nice to see. We have a bi-specific, obviously, with Ribrovent. This is a tri-specific. And again, the power of this engine of having so many great partners, you named just some of them, is the power of why we've got this compounding platform engine.

Thank you. I think going back to the quarter, I think there's about $35.5 million was contributed by upfront. How much of that revenue beat was deal timing rather than royalty performance?

Yeah, it was undoubtedly the royalty performance that really drove this record second quarter performance we mentioned earlier, 50% increase year over year. And what's exciting about that is it's contributed to by our earlier launch products. So Darslex and Vivegar, as I talked about earlier, dimensionalizing how despite them being more mature products, launching as sub-Q in 2020 and 2023, they're having phenomenal growth. And it's because of the broad adoption of sub-Q because of the benefits that are happening. But we also layered on that the 80% quarter-and-quarter growth that was delivered by Ogrevis, Opdivo, and Ribrovant sub-Q. So all of this leading to this very robust royalty growth in the quarter. And it's going to continue based on the dynamics of these products. The 35.5 was, I'll just say, a nice balance between the new deals on Enhance and the new deals on Hypercon. So really kind of illustrating how the power of having these multiple royalty compounding platform engines is going to be so important for the great value creation phase we're in at Hale as I am at the moment.

Sure. Thank you, Helen. And you estimate, I think, it's 50 ADCs and 50 nucleic acid programs could benefit from Enhanced. What is technically different about those modalities, and does the royalty structure differ for them?

Yes, we've worked mostly on monoclonal antibodies, and it's fair to say that with the ADCs and the nucleic acids, they are more complex products. So we had to spend a bit of time generating data to illustrate and bring to partners to engage them in a conversation about being able to deliver these drugs subcutaneously and the potential benefits, because obviously there has to be a potential benefit. GSK is the first company that has signed on, but we do anticipate seeing additional companies sign on. On nucleic acids, it was the same story. I mentioned the value proposition of ADCs is a better overall risk benefit. For nucleic acids, there was a belief out there they simply couldn't be delivered and absorbed subcutaneously and that inflammatory response could dampen the response to it. So we're very excited to have an unnamed partner who is advancing to generate data there. All of this data garners interest from other companies and partners, and that's why we're very excited about this large, brand-new addressable opportunity where, because we're the leader, we are filing for and gaining important intellectual property that I think will create a great competitive moat for us there as well.

Thank you.

I didn't mention the structure. The structure is very similar to what we've always had where we have upfront payments, we have milestones for development and commercial, and then durable royalties of at least 10 years, but with the opportunity for co-form patents that can extend the royalty term many years beyond that.

Sure. Thank you, Helen. A series of questions here on the IRA in the 2029 rule. So you've reviewed the documents and you've guided to zero to minimal royalty impact after 2035. What's the load-bearing assumption there in your view?

Yeah, you know, it's a comprehensive document that came out. We spent a good amount of time reviewing all of the aspects that could impact halozyme, and then importantly, looking at each and every product in our portfolio to see could there be any impact at all. And it really was that detailed, thorough assessment, Sean, that resulted in the clarity that there is certainly no headwinds from the IRA. And so that's why we're very comfortable putting out the comments on no to minimal impact. And on our website, there is an assessment of that that just gives us a summary of why we believe that there is not going to be an impact.

Sure, sure. And just to ask on HyperCon, so it adds no new ingredients, so it's a new formulation as opposed to a fixed combination. But is that distinction settled in the proposed rule or is it your interpretation?

Yeah, just on HyperCon, we haven't spent much time. It's another way to facilitate subcutaneous delivery where Hypercon is able to hyperconcentrate other companies' products. So normally, the maximum concentration you can get from monoclonal antibodies is about 120, 150 milligrams per ml. What companies want with Hypercon is to be able to create something that is very meaningful in the market, And that is the ability to reduce the volume by having a higher concentration so it can fit into a small volume auto-injector, which in certain conditions like inflammation and immunology, nephrology, gastroenterology, is the competitive profile that people are going to need. So it's a formulation to answer your question, Sean. And this value proposition is what has resulted in five agreements to date, including the two that Sean mentioned. There's more than 20 targets that are under these agreements. and we have two partners who are expected to start clinical testing next year. And so this really is transforming and we're pioneering just how biologics can be given subcutaneously and that's what's leading to this great period of value creation for Halozyme.

Thank you. Maybe to move on to the MDays litigation and the competitive position. So what are the specific decision points to watch with the litigation with Merck?

Yeah, one thing I always like to start by saying MDase, which is Modified Hyaluronidase and suing Merck for using RIP, is all upside for Halazyme. There is absolutely no read-through, no crossover into anything that can infect some hands. It's a totally different patent estate, just to be exquisitely clear on that. I think key areas to be looking at at the moment, and I'll start outside the U.S., We already have a preliminary injunction in Germany that has stopped Merck from being able to launch QLEX in Germany. In early October, we expect the results of a court case that we have been going through in the Netherlands that not only could have the potential to stop the launch in Netherlands, it could also prohibit the launch in multiple other European countries because it is a license holder. And there are proceedings continuing in Denmark, Sweden, and also Italy at this period of time. So I definitely would be looking to those events. Turning to the U.S., that is an area where we're undergoing some challenges and back and forth with Merck with regard to the validity of the patents. I would say that is something that is going to continue for a pretty long period of time. because no matter the outcome of the decisions of the first ruling of the PTAB, these will be appealed. Now, the timing of the district court case, which is a very important one because that is the one that will determine whether Merck is infringing us, where we're seeking a permanent injunction and damages, will be influenced by clarity on what's happening in the PTAB. So that will, the U.S. will progress, I think, along and have timing determined by the ultimate outcome of the initial and final decisions on the validity of the patent.

Thank you.

No near-term answer in the U.S.

Sure, thank you. And you argue that companies signing with Altagen are pursuing targets that are already exclusively licensed to you. Is that a durable structural advantage or one that's just timing?

Now, Sean, we have multiple durable structural advantages over anyone in this market, and let me just highlight two. The first one I'll talk about is the fact that we have 10 launch products, and because we've got 10 launch products, we've been able to establish a large, comprehensive database of information. Now, anybody wanting to use a sub-Q technology wants to evaluate the technology, but they also want to understand the development risk. And we're just in a unique position with this large database, which has had thousands of patients in clinical studies, more than a million patients in post-marketing experience, we can give data-driven answers. And that is something that is unassailable, and it's unachievable by anyone to be able to catch up to us to do that. And we signed three deals on Enhance this year. Every company comes to us and says, you're the expert. You have the data. That is why we're coming to you. I'd say the second structural advantage is that we have the broadest set of sub-queue delivery technologies now. And if Enhance is not the right fit for the target profile for a company, if they come to Halosign, we can help them identify, is there another option for them? And again, there is nobody with as broad a set of options. And Enhance is seen as the gold standard. These hyperconcentration technologies we have, Hypercon and SurfBio, are the most advanced. the best defined, and that's why companies look at it as now the one-stop shop for sub-Q delivery.

Sure, thank you. Thank you, Helen. And on HyperCon, so a couple of questions here. So you've got into $1 billion in royalties by the mid-2030s. I think the first clinical start is next year. I think you said in the past that maybe the first product will be launched in 2030. So maybe just to double down on some of those assumptions.

Yeah, happy to. So, you know, I think there's a few things that underpin our excitement about Hypercon. So I would say, first of all, the attractiveness of the subcutaneous market has increased tremendously with Enhance. So I think we expect rapid uptake of Hypercon when it comes to the market. As Helen mentioned, it's really a transformational product. Second thing I would point to is the commercial success of Enhance and the patient expectations that are out there now for subcutaneous delivery. Patients don't want to have an IV infusion for three to six or even six to eight hours when they can have a subcutaneous injection that's only a matter of minutes. And increasingly, there's an expectation for delivery in the community setting and also at-home delivery, and so I think HypoCon fits perfectly into that. Helen mentioned some of the indications. It used to be oncology, subcutaneous was the expectation, now INI, gastroenterology. So those are huge markets with huge potential that Hypercon can play in. And lastly, I'd point to the fact that we've already signed five deals. We have 20 targets. So the potential for Hypercon is tremendous. I would also say that I think Helen pointed to a billion dollars of sales for Enhance a number of years ago, and we're going to beat that by a year. So we have a track record of delivering. Sure, sure.

That's good characterization. I just got it thematically about your stock. There's always been this concern that the enhanced royalties step down and then you're in a challenge bet go, but you've always been on the front foot saying those royalties will be enduring, albeit maybe at a lower rate. But I guess one of the offsets, which probably doesn't get a whole lot of credit in my view, is the strategy around Hypercon as the ballast beyond that. So how would you characterise the investor perception around Hypercon and its ability to offset whatever step-down in royalty rates you might get from in-hands? And what proof points can we look to as investors to say that we're actually on track? Is it a matter of just unfurling those proof points over the coming years?

Yeah, I know. We definitely have had a lot of very positive feedback about the strategic fit of adding Hypergon and the recognition that Hila Simon is a great position and the best position and best owner for that asset to be able to repeat the success that we saw with Enhanced. There's no doubt about that. We see this as opening up a brand-new market to Halozyme, and just to say I think most investors understand this now, but perhaps not everybody does. Today, there are products where to be competitive and to have that additional value creation for the companies, you need to have the most patient-friendly way of being delivered, and inflammation and immunology where there may already be products on the market that are sub-Q, the goal is to have the easiest to deliver 2ml or less small volume autoinject to deliver product with low frequency. And that's where HyperCon fits. It's additional to where we were with Enhance. It's an expansion of our TAM. And, you know, it is, I think, pretty remarkable that already five companies have signed up. and important companies like J&J, Eugenics, Lily, Vertex, and Uruka this year to be able to get to that ultimate excellent competitive target profile for patients for expansion of that adoption. Now, I would say many investors express a lot of excitement about that. They are intrigued as to what the first products are going to be. Due to confidentiality, we are unable to see what those products are going to be, but it will become clearer in 2027 and beyond exactly what those are. And I will say, in addition to those two, we have additional feasibility testing going on from other partners that is not public yet. And so it really does show this is the right time. We're at the secular time for sub-Q delivery. We're at the right place with the right technology. I think there can be more recognition of the value that will come when we enter the clinic, when it becomes clear of the products that we're working on. But certainly in the company, we are incredibly excited with the addition of Hypercon. It's not going to be a transition from Enhance. It is going to be additional because as we've demonstrated with three new Enhance deals this year, Enhance is a great fit for large volume delivery, and we're going to have new products and new royalty streams coming from that later this decade and well into the 2030s. But think about HyperCon at that layer on top of that and just opportunity we wouldn't necessarily have gotten for enhanced. So that definitely is going to be, I think, a story in 27.

Sure, thank you. We haven't talked about SurfBio, so maybe remind investors what it is and how that fits into your strategy.

Yes, SurfBio is a second hyperconcentration technology. The HyperCon works by dehydration. The surf bio achieves the same goal of concentration of 500 milligrams per ml tested with multiple different modalities such as antibodies, even small molecules in the case of surf bio that will further offer another option for partners as to how they can take their products and make it into these small 2 ml or less auto injectors for the growth areas. of inflammation and immunology, nephrology, and gastroenterology, just as several examples. Now, it's a little earlier in development. It's about 18 months behind HyperCon, so we expect it to enter the clinic in 2028. And some people do ask us, why do we have two technologies? Well, Sean, you may recognize over the years that we have occasionally great partners who want us to do exclusive deals for a target. You can imagine that makes sense because they see this as a major part of their competitive moat. By having two technologies, that expands our opportunity to work with more partners on the same target. And there really was the strategic rationale for that approach. And so different way to do it, but really tapping into the secular trend where sub-Q delivery is table stakes now in multiple therapeutic areas. and we are the company with the broadest range of technologies to fit their needs.

Sure, thank you. Thank you, Helen. And I believe last year you saw a real uptick in the cadence of deals and inbound. And, you know, what do you think is driving that? And sort of our view generally in AI might not ultimately solve the biology problem in the near term. It will over the long term.

But what we think it does is patterns, pipelines, gets more deals to the table, gets you to failure faster, if anything but you know how do you characterize the the cadence of uh you know deals going forward yeah we are delighted with the the deals that we have um been able to sign this year and i think it really does um play to what is a secular uh trend um that um in many of these therapeutic areas you have to have a sub-q um delivery and we're seen as the the leader not just in terms of the technologies, I'll just add, also in terms of our internal expertise to help partners get into the clinic fast, design more innovative studies that can result in faster, less expensive paths to approval. And we hear time and time again in the conversations we've had that resulted in the three deals this year and the three deals at the end of last year. People are really coming to is because we are the one-stop shop, we have the gold standard technologies, and we just have the broadest experience, and it's going to continue. I've been in this role quite a number of years now. We've never had as much incoming interest. It's really terrific, and we're able to, with our lean business model, support multiple partners at the same time without dramatic increases in our expense base. So it's a terrific business model we have.

Sure, thank you. Just conscious of time, I want to squeeze in some questions on the balance sheet. So you brought back about $3 million of stock at $69 a share, which is good, and I think you've got just over $2.15 million in debt. How do you balance buyback versus delevering?

We actually don't view those as competing priorities. I think if you think about this year, by the end of the year, we'll be down to about 1.2x leverage, maybe even a bit less. And we were able to buy back over $300 million of stock in Q2. So the great thing about Halozyme and the strength of our free cash flow is that we can achieve a lot of our capital allocation objectives simultaneously. We're investing in our organic portfolio, obviously. There's still more that we can get out of Enhance. We're investing in Hypercon and Surf. We're also obviously doing the buybacks and also considering M&A, and those are things that we can do in parallel.

So M&A, I think you said that might be off the table this year or not, not a focus.

So, I mean, I think what we're doing is carefully evaluating opportunities. We have to find an opportunity that meets a specific set of criteria that I think we could transact on. So we don't expect to do anything in 2026, but we continue to look for opportunities. Wonderful.

Thank you. And now we're close to time, but is there anything I didn't ask that I should have or a message you'd like to leave the investor audience with?

Yeah. Hopefully the message you have taken from this conversation is that we are transforming the delivery of biologics subcutaneously. and through that creating just an entered into an amazing time of value creation for our partners, for patients, and our shareholders. I think we've been very strategic in continuing to focus on Enhance. We're going to be investing to maximize HyperCon, as Darren mentioned, including the manufacturing approach to that because we believe that we can create the greatest value for our partners by being able to deliver from them from drug substance all the way through fill finish. And we're evaluating exactly the timing cost of that. But a really important reason for doing that is also that it's allowing us to do process improvements, to continue to innovate, to generate UIP. And all of this just further expands Halosime's competitive mode. And so I think that is another very important part of our story. So this year, look for us to be working hard to continue to expand beyond that 13 target in 2026 products in the clinic, adding more enhanced products that are going to generate future royalty streams to layer on the current exciting story, but also Hypercon as well, and a couple of years from now, Surf Bio as well.

We'll finish the conversation there, but thank you both for your time.