Third Quarter Revenue Increased 80% YOY to
$209 Million, with GAAP Diluted
Earnings per Share of $0.44 and
Non-GAAP Diluted Earnings per Share of $0.741
Record Third Quarter Royalty Revenue Increased
70% YOY to $99.6 Million
Reiterating 2022 Revenue Guidance of
$655 Million to $685 Million, Representing 48%-55% Growth over
Reported 2021 Revenue
SAN
DIEGO, Nov. 8, 2022 /PRNewswire/ -- Halozyme
Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme") today reported its
financial and operating results for the third quarter ended
September 30, 2022 and provided an update on its recent
corporate activities and outlook.
"Our third quarter accomplishments are reflective of the
expanded opportunities and capabilities at Halozyme that support an
enhanced and extended revenue and earnings growth trajectory.
DARZALEX® SC and Phesgo® have continued to
demonstrate strong momentum driving 70% year-over-year royalty
revenue growth in the third quarter. Our partners also continued to
advance their development pipelines with ENHANZE®. Our
Wave 3 products represent the most near-term opportunities with the
potential to launch between 2023 and 2025. We are excited for
argenx's biologics license application to the FDA for efgartigimod
SC with ENHANZE® for Myasthenia Gravis as well as
Roche's plans for regulatory submissions for Tecentriq®
SC in the U.S. and EU," said Dr. Helen
Torley, president and chief executive officer of Halozyme.
"Our leadership in drug delivery technologies and innovative
commercial products have augmented our growth initiatives,
diversified our revenue streams and extended revenue durability. We
look forward to further strengthening our position as the drug
delivery partner of choice for pharmaceutical and biotechnology
companies with both ENHANZE® and our
auto-injectors."
Recent Partner Highlights:
- In October 2022, Roche
Pharmaceuticals China announced the approval of Herceptin
(trastuzumab injection subcutaneous with ENHANZE®) in
China for the treatment of
patients with early-stage and metastatic HER2-positive breast
cancer.
- In September 2022, Janssen
initiated a Phase 3 study of lazertinib and amivantamab with
ENHANZE® in patients with epidermal growth factor
receptor (EGFR)-mutated advanced or metastatic non-small cell lung
cancer (PALOMA-3).
- In September 2022, argenx
announced the submission of a biologics license application ("BLA")
to the U.S. Food and Drug Administration ("FDA") for subcutaneous
("SC") efgartigimod for the treatment of adults with generalized
myasthenia gravis ("MG"). SC efgartigimod is co-formulated with
ENHANZE®.
- In September 2022, Chugai
Pharmaceutical Co., Ltd. (a Member of the Roche Group) announced
the submission of a New Drug Application in Japan for fixed-dose subcutaneous combination
of pertuzumab and trastuzumab (same monoclonal antibodies as
Phesgo® in U.S. and EU).
- In August 2022, Bristol Myers
Squibb ("BMS") initiated a Phase 3 trial to compare the drug levels
of nivolumab with ENHANZE® administered subcutaneously
versus intravenous administration in participants with melanoma
following complete resection (CheckMate-6GE).
- In August 2022, Roche announced
that the Phase III IMscin001 study evaluating a subcutaneous
formulation of Tecentriq® (atezolizumab) with
ENHANZE® met its co-primary endpoints. The study showed
non-inferior levels of Tecentriq® in the blood
(pharmacokinetics), when injected subcutaneously, compared with
intravenous infusion, in cancer immunotherapy-naïve patients with
advanced or metastatic non-small cell lung cancer for whom prior
platinum therapy has failed. The safety profile of the SC
formulation was consistent with IV Tecentriq®. Roche
announced that they will submit the data for regulatory approval to
health authorities globally, including the FDA, resulting in
revenue recognition of $19 million
for Halozyme in Q3 2022 for associated milestones.
- In July 2022, Takeda announced
positive topline results from pivotal Phase 3 trial evaluating
HYQVIA® (Immunoglobulin infusion 10% (Human) with
rHuPH20), for maintenance treatment of chronic inflammatory
demyelinating polyradiculoneuropathy ("CIDP").
Recent Corporate Highlights:
- In August 2022, we completed the
sale of $720 million in aggregate
principal amount of 1.00% Convertible Senior Notes due 2028. We
used a portion of the net proceeds to facilitate an induced
conversion with certain holders of our outstanding 1.25%
Convertible Senior Notes due 2024. In connection with the induced
conversion, we paid the note holders $77.6
million in cash and issued 1.51 million shares. We also used
portions of the net proceeds to repay all of the $250 million term loan facility due 2026.
- In August 2022, we entered into
an amendment to our revolving credit agreement that increased the
size of the facility from $350
million to $575 million.
- In the third quarter of 2022, we accelerated $100 million of planned share repurchases from
2023 into 2022, for a total of $200
million planned share repurchases in 2022. In August 2022, we repurchased 2.1 million shares of
common stock in open market purchases for $90.2 million at an average price per share of
$43.09 and entered into an
accelerated share repurchase agreement to repurchase $109.8 million of our common stock, for which we
took an initial delivery of 2 million shares.
Third Quarter Financial Highlights:
- Revenue for the third quarter was $209
million compared to $115.8
million for the third quarter of 2021. The 80%
year-over-year increase was driven by an increase in royalty
revenue primarily attributable to subcutaneous DARZALEX®
(daratumumab), the addition of product sales as a result of the
Antares Pharma acquisition and an increase in revenues under
collaborative agreements due to milestone recognitions from BMS and
Roche. Revenue for the quarter included $99.6 million in royalties, an increase of 70%
compared to $58.6 million in the
prior year period.
- Cost of sales for the third quarter was $47.3 million, compared to $18.6 million for the third quarter of 2021. The
year-over-year increase was driven by an increase in product sales
as a result of the Antares Pharma acquisition.
- Amortization of intangibles expense in the third quarter was
$27.2 million, an increase from no
expense in the third quarter of 2021 due to the Antares Pharma
acquisition, in which we acquired intangible assets that are
amortized over a useful life related to the auto injector
technology platform, XYOSTED® and
TLANDO®.
- Research and development expenses for the third quarter were
$16.7 million, compared to
$8.5 million for the third quarter of
2021. The increase is primarily due to planned investments in
ENHANZE®, the Antares Pharma acquisition and increases
in compensation expense related to the ongoing combined larger
workforce.
- Selling, general and administrative expenses for the third
quarter were $34.5 million, compared
to $13.2 million for the third
quarter of 2021. The increase was primarily due to the Antares
Pharma acquisition and an increase in compensation expense related
to the ongoing combined larger workforce.
- Operating Income in the third quarter of 2022 was $83.3 million, compared to operating income of
$75.6 million in the third quarter of
2021.
- Net Income: On a GAAP basis in the third quarter of 2022, net
income was $61.6 million, compared
with net income of $216.6 million in
the third quarter of 2021, which includes the reversal of
substantially all of the valuation allowance recorded against the
Company's deferred tax assets and resulted in the recognition of a
non-cash income tax benefit during the quarter of $142.5 million. Non-GAAP net income was
$103.3 million in the third quarter
of 2022, compared with non-GAAP net income of $80.5 million in the third quarter of
2021.1 The Company notes that 2022 is the first year in
which Halozyme is recording income tax expense as part of its
income statement.
- Earnings per Share: On a GAAP basis in the third quarter of
2022, diluted earnings per share was $0.44, compared with $1.48 in the third quarter of 2021. On a non-GAAP
basis diluted earnings per share was $0.74, compared with diluted earnings per share
of $0.55 in the third quarter of
2021.1
- Cash, cash equivalents and marketable securities were
$265.6 million on September 30, 2022, compared to $740.9 million on December
31, 2021.
Financial Outlook for 2022
The Company is reiterating its financial guidance for 2022,
which was last provided on August 9,
2022 as a result of the close of the Antares Pharma
transaction and strong year-to-date results. For the full year
2022, the Company expects:
- Total revenue of $655 million to
$685 million, representing growth of
48% to 55% over 2021 total revenue primarily driven by projected
revenue contribution from the Antares business of $115 million to $125
million. The Company expects revenue from royalties to
increase by approximately 70% over revenue from royalties in 2021,
to approximately $350 million to
$360 million.
- GAAP operating income of $240
million to $265 million, which
includes one-time transaction costs of approximately $45 million and amortization of approximately
$80 million related to the Antares
acquisition. Adjusting for these costs, we expect adjusted
operating income of $365 million to
$390 million. 1
- GAAP net income of $170 million
to $195 million and non-GAAP net
income of $295 million to
$320 million.1 The Company
notes that 2022 will be the first full fiscal year in which
Halozyme will record income tax expense as part of its income
statement.
- GAAP diluted earnings per share of $1.20 to $1.35 due
to acquisition related costs in 2022.
- Non-GAAP diluted earnings per share are expected to be
$2.10 to $2.25,1 reflective of the projected
accretion from the Antares Pharma acquisition.
The Company's earnings per share guidance does not consider the
impact of potential future share repurchases.
Table 1. 2022
Financial Guidance
|
|
|
|
|
|
Guidance
Range
|
Net Revenue
|
|
$655 to $685
million
|
GAAP Operating
Income
|
|
$240 to $265
million
|
Adjusted Operating
Income
|
|
$365 to $390
million1
|
GAAP Net
Income
|
|
$170 to $195
million
|
Non-GAAP Net
Income
|
|
$295 to $320
million1
|
GAAP Diluted
EPS
|
|
$1.20 to
$1.35
|
Non-GAAP Diluted
EPS
|
|
$2.10 to
$2.251
|
Webcast and Conference Call
Halozyme will host its Quarterly Update Conference Call for the
third quarter ended September 30, 2022 today, Tuesday,
November 8, 2022 at 4:30 p.m.
ET/1:30 p.m. PT. The call will
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 the "Investors" section
of www.halozyme.com.
About Halozyme
Halozyme is a biopharmaceutical company bringing disruptive
solutions to significantly improve patient experiences and outcomes
for emerging and established therapies. As the innovators of the
ENHANZE® technology with the proprietary enzyme rHuPH20,
Halozyme's commercially-validated solution is used to facilitate
the delivery of injected drugs and fluids in order to reduce the
treatment burden to patients. Having touched more than 600,000
patient lives in post-marketing use in five commercialized products
across more than 100 global markets, Halozyme has licensed its
ENHANZE® technology to leading pharmaceutical and
biotechnology companies including Roche, Takeda, Pfizer, AbbVie,
Eli Lilly, Bristol-Myers Squibb, Alexion, argenx, Horizon
Therapeutics, ViiV Healthcare and Chugai Pharmaceutical.
Halozyme also develops, manufactures and commercializes, for
itself or with partners, drug-device combination products using its
advanced auto-injector technology that are designed to provide
commercial or functional advantages such as improved convenience
and tolerability, and enhanced patient comfort and adherence. The
Company has a commercial portfolio of proprietary products
including XYOSTED®, TLANDO® and
NOCDURNA® and partnered commercial products and ongoing
product development programs with several pharmaceutical companies
including Teva Pharmaceutical, Covis Pharma, Pfizer 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 Non-GAAP
net income 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 net income
and Non-GAAP diluted earnings per share excluding share-based
compensation expense, amortization of debt discount, debt
extinguishment expense and certain adjustments to income tax
expense. Reconciliations between GAAP and Non-GAAP financial
measures are included at the end of this press release. 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 Halozyme'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. Halozyme 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 expected
future financial performance (including the Company's financial
outlook for 2022) and expectations for future growth,
profitability, total revenue and royalty revenue, net and operating
income and earnings-per-share and to repurchase shares 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 larger 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, regulatory submissions
and product launches, the size and growth prospects of our
partners' drug franchises, potential new collaborations and
collaborative targets and regulatory review and potential approvals
of new partnered or proprietary products. These
forward-looking statements are typically, but not always,
identified through use of the words "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, risks associated with integrating the Antares
Pharma business, such as the risk that the businesses will not be
integrated successfully, that such integration may be more
difficult, time-consuming or costly than expected or that the
expected benefits of the acquisition will not be realized,
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 any potential delays caused by the current
COVID-19 global pandemic, 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 recently
filed Annual Report on Form 10-K and Quarterly Reports on Form 10-Q
filed with the Securities and Exchange Commission.
Contacts:
Tram Bui
VP, Investor Relations and Corporate Communications
609-359-3016
tbui@antarespharma.com
Dawn Schottlandt / Claudia Styslinger
Argot Partners
212-600-1902
Halozyme@argotpartners.com
Footnotes:
1. Reconciliations between GAAP reported and non-GAAP financial
information and adjusted guidance measures are provided at the
end.
Halozyme
Therapeutics, Inc.
Condensed
Consolidated Statements of Operations
(Unaudited)
(In thousands,
except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
Nine Months
Ended
September
30,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
|
Royalties
|
|
$
99,551
|
|
$
58,563
|
|
$
254,496
|
|
$ 141,264
|
Product sales,
net
|
|
61,427
|
|
25,047
|
|
129,867
|
|
77,173
|
Revenues under
collaborative agreements
|
|
47,998
|
|
32,220
|
|
94,257
|
|
122,870
|
Total
revenues
|
|
208,976
|
|
115,830
|
|
478,620
|
|
341,307
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
47,319
|
|
18,589
|
|
97,184
|
|
59,826
|
Amortization of
intangibles
|
|
27,193
|
|
—
|
|
38,596
|
|
—
|
Research and
development
|
|
16,705
|
|
8,486
|
|
44,041
|
|
25,564
|
Selling, general and
administrative
|
|
34,467
|
|
13,169
|
|
105,777
|
|
36,549
|
Total operating
expenses
|
|
125,684
|
|
40,244
|
|
285,598
|
|
121,939
|
Operating
income
|
|
83,292
|
|
75,586
|
|
193,022
|
|
219,368
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Investment and other
(expense) income, net
|
|
641
|
|
274
|
|
194
|
|
771
|
Inducement expense
related to convertible note
|
|
(2,712)
|
|
—
|
|
(2,712)
|
|
(20,960)
|
Interest
expense
|
|
(7,514)
|
|
(1,754)
|
|
(12,377)
|
|
(5,471)
|
Net income before
income taxes
|
|
73,707
|
|
74,106
|
|
178,127
|
|
193,708
|
Income tax
expense
|
|
12,073
|
|
(142,481)
|
|
33,700
|
|
(142,232)
|
Net income
|
|
$
61,634
|
|
$
216,587
|
|
$
144,427
|
|
$ 335,940
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.45
|
|
$
1.53
|
|
$
1.05
|
|
$
2.39
|
Diluted
|
|
$
0.44
|
|
$
1.48
|
|
$
1.02
|
|
$
2.28
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
136,527
|
|
142,021
|
|
137,370
|
|
140,815
|
Diluted
|
|
139,387
|
|
146,690
|
|
141,019
|
|
147,652
|
Halozyme
Therapeutics, Inc.
Condensed
Consolidated Balance Sheets
(Unaudited)
(In
thousands)
|
|
|
|
|
|
|
|
September
30,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
147,159
|
|
$
118,719
|
Marketable securities,
available-for-sale
|
|
118,425
|
|
622,203
|
Accounts receivable,
net and contract assets
|
|
233,302
|
|
90,975
|
Inventories,
net
|
|
103,276
|
|
53,908
|
Prepaid expenses and
other current assets
|
|
51,039
|
|
40,482
|
Total current
assets
|
|
653,201
|
|
926,287
|
Property and equipment,
net
|
|
36,674
|
|
8,794
|
Prepaid expenses and
other assets
|
|
25,783
|
|
13,414
|
Goodwill
|
|
199,481
|
|
—
|
Intangible assets,
net
|
|
948,904
|
|
—
|
Deferred tax assets,
net
|
|
—
|
|
155,434
|
Restricted
cash
|
|
500
|
|
500
|
Total
assets
|
|
$ 1,864,543
|
|
$
1,104,429
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
18,166
|
|
$
1,541
|
Accrued
expenses
|
|
74,317
|
|
24,441
|
Deferred revenue,
current portion
|
|
3,586
|
|
1,746
|
Current portion of
long-term debt, net
|
|
13,315
|
|
89,419
|
Total current
liabilities
|
|
109,384
|
|
117,147
|
|
|
|
|
|
Deferred revenue, net
of current portion
|
|
2,833
|
|
2,530
|
Long-term debt,
net
|
|
1,491,156
|
|
787,255
|
Other long-term
liabilities
|
|
5,418
|
|
544
|
Deferred tax
liabilities, net
|
|
28,989
|
|
—
|
Contingent
liability
|
|
129,772
|
|
—
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
135
|
|
138
|
Additional paid-in
capital
|
|
13,177
|
|
256,347
|
Accumulated other
comprehensive loss
|
|
(1,836)
|
|
(620)
|
Retained earnings
(accumulated deficit)
|
|
85,515
|
|
(58,912)
|
Total stockholders'
equity
|
|
96,991
|
|
196,953
|
Total liabilities and
stockholders' equity
|
|
$ 1,864,543
|
|
$
1,104,429
|
Halozyme
Therapeutics, Inc.
GAAP to Non-GAAP
Reconciliations
Net Income and
Diluted EPS
(Unaudited)
(In thousands,
except per share amounts)
|
|
|
|
|
|
Three Months
Ended
September
30,
|
|
|
2022
|
|
2021
|
GAAP Net
Income
|
|
$
61,634
|
|
$
216,587
|
Adjustments:
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
2,712
|
|
—
|
Share-based
compensation
|
|
6,797
|
|
5,399
|
Amortization of debt
discount
|
|
3,932
|
|
968
|
Amortization of
intangible assets
|
|
27,193
|
|
—
|
Transaction costs for
business combinations(1)
|
|
439
|
|
—
|
Amortization of
inventory step-up at fair value(2)
|
|
5,830
|
|
—
|
Other one time
items
|
|
825
|
|
|
Income tax
benefit(3)
|
|
—
|
|
(142,481)
|
Income tax effect of
above adjustments(4)
|
|
(6,034)
|
|
(5)
|
Non-GAAP Net
Income
|
|
$
103,328
|
|
$
80,468
|
|
|
|
|
|
GAAP Diluted
EPS
|
|
$
0.44
|
|
$
1.48
|
Adjustments:
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
0.02
|
|
—
|
Share-based
compensation
|
|
0.05
|
|
0.04
|
Amortization of debt
discount
|
|
0.03
|
|
0.01
|
Amortization of
intangible assets
|
|
0.20
|
|
—
|
Transaction costs for
business combinations(1)
|
|
—
|
|
—
|
Amortization of
inventory step-up at fair value(2)
|
|
0.04
|
|
—
|
Other one time
items
|
|
0.01
|
|
|
Income tax
benefit(3)
|
|
—
|
|
(0.97)
|
Income tax effect of
above adjustments(4)
|
|
(0.04)
|
|
—
|
Non-GAAP Diluted
EPS
|
|
$
0.74
|
|
$
0.55
|
|
|
|
|
|
GAAP & Non-GAAP
Diluted Shares
|
|
139,387
|
|
146,690
|
|
|
|
|
|
|
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 Antares acquisition.
|
|
(2)
|
Amount related to
amortization of the inventory step-up associated with purchase
accounting for the Antares acquisition.
|
|
(3)
|
In the third quarter of
2021, the Company recognized a non-cash tax benefit of
approximately $142 million related to the release of substantially
all of its valuation allowance against its deferred tax
assets.
|
|
(4)
|
Estimated income tax
effect of the Non-GAAP reconciling items are calculated using
applicable statutory tax rates, taking into consideration of any
valuation allowance.
|
Halozyme
Therapeutics, Inc
GAAP to Non-GAAP
Reconciliations
Net Income and
Diluted EPS 2022 Guidance
(Unaudited)
(In millions, except
per share amounts)
|
|
|
|
|
|
|
|
2022
|
|
2021
|
GAAP Net
Income
|
|
$
170 - 195
|
|
$
402.7
|
Adjustments:
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
3 - 3
|
|
21.0
|
Share-based
compensation
|
|
24 - 25
|
|
20.8
|
Amortization of debt
discount
|
|
8 - 8
|
|
3.9
|
Amortization of
intangible assets
|
|
66 - 66
|
|
—
|
Transaction costs for
business combinations
|
|
19 - 19
|
|
—
|
Severance and
share-based compensation acceleration expense
|
|
23 - 23
|
|
—
|
Amortization of
inventory step-up at fair value
|
|
14 - 15
|
|
—
|
Realized loss from
marketable securities
|
|
2 - 2
|
|
|
Other one time
items
|
|
3 - 4
|
|
|
Income tax
benefit
|
|
—
|
|
(154.2)
|
Income tax effect of
above adjustments
|
|
(36) - (39)
|
|
(0.1)
|
Non-GAAP Net
Income
|
|
$
295 -320
|
|
$
294.1
|
|
|
|
|
|
GAAP Diluted
EPS
|
|
$
1.20 - 1.35
|
|
$
2.74
|
Adjustments:
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
0.02 - 0.02
|
|
0.14
|
Share-based
compensation
|
|
0.17 - 0.18
|
|
0.14
|
Amortization of debt
discount
|
|
0.06 - 0.06
|
|
0.03
|
Amortization of
intangibles
|
|
0.47 - 0.47
|
|
—
|
Transaction costs for
business combinations
|
|
0.14 - 0.14
|
|
—
|
Severance and
share-based compensation acceleration expense
|
|
0.16 - 0.16
|
|
—
|
Amortization of
inventory step-up at fair value
|
|
0.10 - 0.11
|
|
—
|
Realized loss from
marketable securities
|
|
0.01 - 0.01
|
|
—
|
Other one time
items
|
|
0.02 - 0.03
|
|
—
|
Income tax
benefit
|
|
—
|
|
(1.05)
|
Income tax effect of
above adjustments
|
|
(0.26) -
(0.28)
|
|
—
|
Non-GAAP Diluted
EPS
|
|
$
2.10 - 2.25
|
|
$
2.00
|
|
|
|
|
|
GAAP & Non-GAAP
Diluted Shares
|
|
140.0 -
141.0
|
|
146.8
|
|
|
|
|
|
Dollar amounts, as
presented, are rounded. Consequently, totals may not add
up.
|
|
|
Halozyme
Therapeutics, Inc
GAAP to Non-GAAP
Reconciliations
Operating
Income 2022 Guidance
(Unaudited)
(In
millions)
|
|
|
|
|
|
|
|
2022
|
|
2021
|
GAAP Operating
Income
|
|
240 - 265
|
|
$
275.9
|
Adjustments:
|
|
|
|
|
Amortization of
intangible assets
|
|
66 - 66
|
|
—
|
Transaction costs for
business combinations
|
|
19 - 19
|
|
—
|
Severance and
share-based compensation acceleration expense
|
|
23 - 23
|
|
—
|
Amortization of
inventory step-up at fair value
|
|
14 - 15
|
|
—
|
Other one time
Items
|
|
3 - 4
|
|
|
Adjusted Operating
Income (1)
|
|
365 -
390
|
|
$
275.9
|
|
|
|
|
|
|
Dollar amounts, as
presented, are rounded. Consequently, totals may not add
up.
|
|
(1). The adjusted
operating income is adjusted for acquisition related
costs.
|
View original content to download
multimedia:https://www.prnewswire.com/news-releases/halozyme-reports-third-quarter-2022-financial-and-operating-results-301672110.html
SOURCE Halozyme Therapeutics, Inc.