Fourth Quarter Revenue Increased 78% YOY to
$181 million; GAAP Diluted Earnings
per Share of $0.42 and Non-GAAP
Diluted Earnings per Share of $0.481
Full Year 2022 Revenue Increased 49% YOY to
$660.1 million; GAAP Diluted Earnings
per Share of $1.44 and Non-GAAP
Diluted Earnings per Share of $2.211
Record Fourth Quarter Royalty Revenue
Increased 69% YOY to $106.0 million;
Record Full Year Royalty Revenue Increased 77% YOY to $360.5 million
2023 Revenue Guidance of $815 million to $845
million, Representing 23%-28% YOY Growth; EBITDA of
$415 million to $440 million, Representing >30% YOY Growth
1
SAN
DIEGO, Feb. 21, 2023 /PRNewswire/ --
Halozyme Therapeutics, Inc. (NASDAQ: HALO) ("Halozyme") today
reported its financial and operating results for the fourth quarter
and full year ended December 31, 2022 and provided an update
on its recent corporate activities and outlook.
"Our strong performance across the business, including the
successful integration of Antares Pharma, drove another year of
record revenue of $660 million,
representing 49% year-over-year growth," said Dr. Helen Torley, president and chief executive
officer of Halozyme. "In 2023, we continue to project record
revenue of $815 to $845 million and greater than 30% growth in
EBITDA to $415 to $440 million, driven by diversified revenue
streams. I am excited with the opportunity for two partner
regulatory approvals in 2023 for products utilizing
ENHANZE®, SC efgartigimod for generalized myasthenia
gravis and SC atezolizumab. With the addition of Antares to the
Halozyme portfolio, we are enthusiastic about our ability to expand
our partnerships with ENHANZE® and the auto-injector
technology."
Recent Partner Highlights:
- Bristol Myers Squibb plans to
initiate a Phase 3 trial in early 2023 to demonstrate the drug
exposure level of nivolumab plus relatlimab fixed-dose combination
with ENHANZE® is not inferior to intravenous
administration in participants with previously untreated metastatic
or unresectable melanoma. This is in addition to two ongoing Phase
3 studies comparing nivolumab administrated intravenously to
nivolumab administered subcutaneously in patients with renal cell
carcinoma and melanoma.
- In December 2022, Takeda achieved
a sales milestone for HYQVIA®, triggering a payment of
$10 million.
- In November 2022, Roche submitted
a Biologics License Application to the FDA and a Marketing
Authorization Application to the European Medicines Agency (EMA)
for SC atezolizumab with ENHANZE® across all approved
indications of IV Tecentriq®. In January 2023, Roche announced the FDA accepted
the Biologics License Application with a PDUFA date of September 15, 2023.
- In November 2022, Roche submitted
an Initial Market Application for Mabthera® subcutaneous
(SC) to the Center for Drug Evaluation in China.
- In November 2022, argenx
announced the acceptance of the Biologics License Application for
SC efgartigimod for the treatment of adults with generalized
myasthenia gravis. In January 2023,
argenx announced that the FDA extended the PDUFA date to
June 20, 2023.
- In November 2022, argenx
announced the submission of a Marketing Authorization Application
to the EMA for SC efgartigimod for the treatment of adults with
generalized myasthenia gravis.
- In October 2022, Roche
Pharmaceuticals China announced the approval of
Herceptin® SC (trastuzumab injection subcutaneous with
ENHANZE®) in China for
the treatment of patients with early-stage and metastatic
HER2-positive breast cancer.
- In July 2022, Takeda announced
positive topline results from the pivotal phase 3 ADVANCE clinical
trial evaluating HYQVIA® for the maintenance treatment
of chronic inflammatory demyelinating polyradiculoneuropathy
(CIDP), and the company confirmed its intention to submit
regulatory applications in the United
States and European Union in its fiscal year 2022.
Recent Corporate Highlights:
- In February 2023, Halozyme
elected Barbara Duncan to its Board
of Directors.
- In January 2023, Halozyme elected
to redeem on March 17, 2023 all if
its outstanding 1.25% convertible senior notes due 2024.
- In December 2022, Halozyme
completed an Accelerated Share Repurchase agreement to repurchase
$110 million of common stock.
Halozyme received a total of 2.4 million shares at an average price
per share of $45.62. During 2022, the
Company repurchased a total of 4.5 million shares for $200 million at an average price per share of
$44.44, and as of December 31, 2022, Halozyme has completed
$350 million of its 3-year,
$750 million dollar share repurchase
plan, at an average price per share of $41.69.
Fourth Quarter and Full Year 2022 Financial
Highlights:
- Revenue for the fourth quarter was $181
million compared to $102.0
million for the fourth quarter of 2021. The 78%
year-over-year increase was driven by an increase in royalty
revenue primarily attributable to subcutaneous DARZALEX®
(daratumumab) and the addition of product sales as a result of the
Antares Pharma acquisition. Revenue for the quarter included
$106.0 million in royalties, an
increase of 69% compared to $62.6
million in the prior year period.
Total revenue for the full year was $660.1
million, compared with $443.3
million in 2021, representing 49% year-over-year
growth.
- Cost of sales for the fourth quarter was $42.1 million, compared to $21.6 million for the fourth quarter of 2021. The
increase was driven by an increase in product sales as a result of
the Antares Pharma acquisition.
Cost of sales for the full year was $139.3
million, compared to $81.4
million in 2021, primarily driven by an increase in sales in
our proprietary and partnered products as a result of the Antares
Pharma acquisition and amortization of inventory step-up associated
with purchase accounting for the acquisition.
- Amortization of intangibles expense in the fourth quarter and
full year was $4.6 million and
$43.1 million, respectively, an
increase from no expense in the fourth quarter and full year of
2021, due to the Antares Pharma acquisition, in which Halozyme
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 fourth quarter and
full year were $22.6 million and
$66.6 million, respectively, compared
to $10.1 million and $35.7 million for the fourth quarter and full
year of 2021, respectively. Selling, general and administrative
expenses for the fourth quarter and full year were $37.7 million and $143.5
million, respectively, compared to $13.8 million and $50.3
million for the fourth quarter and full year of 2021
respectively. The increases were primarily due to planned
investments in ENHANZE®, the Antares Pharma acquisition
and increases in compensation expense related to the combined
workforce.
- Operating income in the fourth quarter was $74.5 million, compared to operating income of
$56.5 million in the fourth quarter
of 2021. Operating income for the full year was $267.5 million, compared to $275.9 million in 2021.
- Net Income on a GAAP basis in the fourth quarter of 2022 was
$57.7 million, compared with net
income of $66.8 million in the fourth
quarter of 2021 and for the full year was $202.1 million, compared to net income of
$402.7 million in 2021, which
includes the reversal of the valuation allowance recorded against
the Company's deferred tax assets and resulted in the recognition
of a one-time non-cash income tax benefit during the prior year
quarter and full year of $12 million
and $154.2 million,
respectively.
- Earnings per Share: On a GAAP basis in the fourth quarter of
2022, diluted earnings per share was $0.42, compared with $0.46 in the fourth quarter of 2021. On a
non-GAAP basis diluted earnings per share was $0.48, compared with diluted earnings per share
of $0.42 in the fourth quarter of
2021.1
GAAP diluted earnings per share for the
full year was $1.44 compared with
$2.74 per share in 2021. The 2021
GAAP results include a one-time recognition of a non-cash income
tax benefit of $1.05 per share.
Non-GAAP diluted earnings per share for the full year was
$2.21 per share, compared to
$2.00 per share in 2021.
- Cash, cash equivalents and marketable securities were
$362.8 million on December 31, 2022, compared to $740.9 million on December
31, 2021.
Financial Outlook for 2023
The Company is reiterating its financial guidance for 2023,
which was initially provided on January 10,
2023. For the full year 2023, the Company expects:
- Total revenue of $815 million to
$845 million, representing growth of
23% to 28% over 2022 total revenue primarily driven by continued
strength in Wave 2 products, including DARZALEX® SC
(daratumumab) and Phesgo® (pertuzumab, trastuzumab and
hyaluronidase) utilizing ENHANZE® technology, as well as
full year auto-injector royalty and product contribution. The
Company expects revenue from royalties of $445 million to $455
million, representing growth of 23% to 26%.
- EBITDA of $415 million to
$440 million, representing growth of
>30% over 2022. EBITDA excludes the impact of amortization costs
related to the Antares Pharma acquisition.1
- Non-GAAP diluted earnings per share of $2.50 to $2.65,
representing growth of >10% over 20221. The Company's
earnings per share guidance does not consider the impact of
potential future share repurchases.
Table 1. 2023 Financial Guidance
|
|
Guidance
Range
|
Total
Revenue
|
|
$815 to $845
million
|
Royalty
Revenue
|
|
$445 to $455
million
|
EBITDA
|
|
$415 to $440
million
|
Non-GAAP Diluted
EPS
|
|
$2.50 to
$2.65
|
Webcast and Conference Call
Halozyme will host its Quarterly Update Conference Call for the
fourth quarter ended December 31, 2022 today, Tuesday,
February 21, 2023 at 4:30 p.m.
ET/1:30 p.m. PT. The
conference call may be accessed live with pre-registration via this
link: https://conferencingportals.com/event/QfiVLXsr. The call will
also be webcast live through the "Investors" section of Halozyme's
corporate website and a recording will be made available following
the close of the call. To access the webcast and additional
documents related to the call, please visit 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 earnings
before interest, taxes, depreciation and, amortization (EBITDA),
adjusted EBITDA and Non-GAAP diluted earnings per share, and
guidance with respect to those measures, in addition to, and not as
a substitute for, or superior to, financial measures calculated in
accordance with GAAP. The Company calculates Non-GAAP diluted
earnings per share excluding share-based compensation expense,
amortization of debt discount, debt extinguishment expense,
intangible asset amortization, changes in contingent liabilities,
transaction costs for business combinations 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 does not provide reconciliations of forward-looking
adjusted measures to GAAP due to the inherent difficulty in
forecasting and quantifying certain amounts that are necessary for
such reconciliation, including adjustments that could be made for
changes in contingent liabilities, share-based compensation expense
and the effects of any discrete income tax items. The Company
evaluates other items of income and expense on an individual basis
for potential inclusion in the calculation of Non-GAAP financial
measures and considers both the quantitative and qualitative
aspects of the item, including (i) its size and nature, (ii)
whether or not it relates to the Company's ongoing business
operations and (iii) whether or not the Company expects it to occur
as part of 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 2023) and expectations for future growth,
profitability, total revenue, and royalty revenue, EBITDA and
non-GAAP diluted 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 or expanded
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, 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, 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 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
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
Revenues:
|
|
|
|
|
|
|
|
|
Royalties
|
|
$ 105,979
|
|
$
62,636
|
|
$
360,475
|
|
$ 203,900
|
Product sales,
net
|
|
61,163
|
|
27,051
|
|
191,030
|
|
104,224
|
Revenues under
collaborative agreements
|
|
14,354
|
|
12,316
|
|
108,611
|
|
135,186
|
Total
revenues
|
|
181,496
|
|
102,003
|
|
660,116
|
|
443,310
|
Operating
expenses:
|
|
|
|
|
|
|
|
|
Cost of
sales
|
|
42,120
|
|
21,587
|
|
139,304
|
|
81,413
|
Amortization of
intangibles
|
|
4,552
|
|
—
|
|
43,148
|
|
—
|
Research and
development
|
|
22,566
|
|
10,108
|
|
66,607
|
|
35,672
|
Selling, general and
administrative
|
|
37,749
|
|
13,774
|
|
143,526
|
|
50,323
|
Total operating
expenses
|
|
106,987
|
|
45,469
|
|
392,585
|
|
167,408
|
Operating
income
|
|
74,509
|
|
56,534
|
|
267,531
|
|
275,902
|
Other income
(expense):
|
|
|
|
|
|
|
|
|
Investment and other
(expense) income, net
|
|
852
|
|
331
|
|
1,046
|
|
1,102
|
Inducement expense
related to convertible note
|
|
—
|
|
—
|
|
(2,712)
|
|
(20,960)
|
Interest
expense
|
|
(4,570)
|
|
(2,055)
|
|
(16,947)
|
|
(7,526)
|
Net income before
income taxes
|
|
70,791
|
|
54,810
|
|
248,918
|
|
248,518
|
Income tax
expense
|
|
13,089
|
|
(11,960)
|
|
46,789
|
|
(154,192)
|
Net income
|
|
$
57,702
|
|
$
66,770
|
|
$
202,129
|
|
$ 402,710
|
|
|
|
|
|
|
|
|
|
Net income per
share:
|
|
|
|
|
|
|
|
|
Basic
|
|
$
0.43
|
|
$
0.48
|
|
$
1.48
|
|
$
2.86
|
Diluted
|
|
$
0.42
|
|
$
0.46
|
|
$
1.44
|
|
$
2.74
|
|
|
|
|
|
|
|
|
|
Shares used in
computing net income per share:
|
|
|
|
|
|
|
|
|
Basic
|
|
135,284
|
|
140,224
|
|
136,844
|
|
140,646
|
Diluted
|
|
138,601
|
|
144,253
|
|
140,608
|
|
146,796
|
Halozyme Therapeutics, Inc.
Condensed
Consolidated Balance Sheets
(Unaudited)
(In
thousands)
|
|
|
|
December 31,
2022
|
|
December 31,
2021
|
ASSETS
|
|
|
|
|
Current
assets:
|
|
|
|
|
Cash and cash
equivalents
|
|
$
234,195
|
|
$
118,719
|
Marketable securities,
available-for-sale
|
|
128,599
|
|
622,203
|
Accounts receivable,
net and contract assets
|
|
231,072
|
|
90,975
|
Inventories,
net
|
|
100,123
|
|
53,908
|
Prepaid expenses and
other current assets
|
|
45,024
|
|
40,482
|
Total current
assets
|
|
739,013
|
|
926,287
|
Property and equipment,
net
|
|
75,570
|
|
8,794
|
Prepaid expenses and
other assets
|
|
26,301
|
|
13,414
|
Goodwill
|
|
409,049
|
|
—
|
Intangible assets,
net
|
|
546,652
|
|
—
|
Deferred tax assets,
net
|
|
44,426
|
|
155,434
|
Restricted
cash
|
|
500
|
|
500
|
Total
assets
|
|
$ 1,841,511
|
|
$
1,104,429
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
Accounts
payable
|
|
$
17,693
|
|
$
1,541
|
Accrued
expenses
|
|
96,516
|
|
24,441
|
Deferred revenue,
current portion
|
|
3,246
|
|
1,746
|
Current portion of
long-term debt, net
|
|
13,334
|
|
89,419
|
Total current
liabilities
|
|
130,789
|
|
117,147
|
|
|
|
|
|
Deferred revenue, net
of current portion
|
|
2,253
|
|
2,530
|
Long-term debt,
net
|
|
1,492,766
|
|
787,255
|
Other long-term
liabilities
|
|
30,433
|
|
544
|
Deferred tax
liabilities, net
|
|
—
|
|
—
|
Contingent
liability
|
|
15,472
|
|
—
|
|
|
|
|
|
Stockholders'
equity:
|
|
|
|
|
Common
stock
|
|
135
|
|
138
|
Additional paid-in
capital
|
|
27,368
|
|
256,347
|
Accumulated other
comprehensive loss
|
|
(922)
|
|
(620)
|
Retained earnings
(accumulated deficit)
|
|
143,217
|
|
(58,912)
|
Total stockholders'
equity
|
|
169,798
|
|
196,953
|
Total liabilities and
stockholders' equity
|
|
$ 1,841,511
|
|
$
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
December
31,
|
|
Twelve Months
Ended
December
31,
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
GAAP Net
Income
|
|
$
57,702
|
|
$
66,770
|
|
$
202,129
|
|
$
402,710
|
Adjustments:
|
|
|
|
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
—
|
|
—
|
|
2,712
|
|
20,959
|
Share-based
compensation
|
|
7,223
|
|
5,126
|
|
24,397
|
|
20,820
|
Amortization of debt
discount
|
|
1,832
|
|
1,267
|
|
7,839
|
|
3,940
|
Amortization of
intangible assets
|
|
4,552
|
|
—
|
|
43,148
|
|
—
|
Transaction costs for
business combinations(1)
|
|
566
|
|
—
|
|
21,934
|
|
—
|
Severance and
share-based compensation acceleration
expense(2)
|
|
—
|
|
—
|
|
22,552
|
|
—
|
Amortization of
inventory step-up at fair value(3)
|
|
(1,353)
|
|
—
|
|
8,931
|
|
—
|
Realized loss from
marketable securities(4)
|
|
—
|
|
—
|
|
1,727
|
|
—
|
Income tax
benefit(5)
|
|
—
|
|
(11,960)
|
|
—
|
|
(154,192)
|
Income tax effect of
above adjustments(6)
|
|
(4,309)
|
|
64
|
|
(24,025)
|
|
(127)
|
Non-GAAP Net
Income
|
|
$
66,213
|
|
$
61,267
|
|
$
311,344
|
|
$
294,110
|
|
|
|
|
|
|
|
|
|
GAAP Diluted
EPS
|
|
$
0.42
|
|
$
0.46
|
|
$
1.44
|
|
$
2.74
|
Adjustments:
|
|
|
|
|
|
|
|
|
Inducement expense
related to convertible notes
|
|
—
|
|
—
|
|
0.02
|
|
0.14
|
Share-based
compensation
|
|
0.05
|
|
0.04
|
|
0.17
|
|
0.14
|
Amortization of debt
discount
|
|
0.01
|
|
0.01
|
|
0.06
|
|
0.03
|
Amortization of
intangible assets
|
|
0.03
|
|
—
|
|
0.31
|
|
—
|
Transaction costs for
business combinations(1)
|
|
—
|
|
—
|
|
0.16
|
|
—
|
Severance and
share-based compensation acceleration
expense(2)
|
|
—
|
|
—
|
|
0.16
|
|
—
|
Amortization of
inventory step-up at fair value(3)
|
|
(0.01)
|
|
—
|
|
0.06
|
|
—
|
Realized loss from
marketable securities(4)
|
|
—
|
|
—
|
|
0.01
|
|
—
|
Income tax
benefit(5)
|
|
—
|
|
(0.08)
|
|
—
|
|
(1.05)
|
Income tax effect of
above adjustments(6)
|
|
(0.03)
|
|
—
|
|
(0.17)
|
|
—
|
Non-GAAP Diluted
EPS
|
|
$
0.48
|
|
$
0.42
|
|
$
2.21
|
|
$
2.00
|
|
|
|
|
|
|
|
|
|
GAAP & Non-GAAP
Diluted Shares
|
|
138,601
|
|
144,253
|
|
140,608
|
|
146,796
|
|
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 represents
severance cost and acceleration of unvested equity awards as part
of the Antares merger agreement.
|
(3)
|
Amount related to
amortization of the inventory step-up associated with purchase
accounting for the Antares acquisition.
|
(4)
|
Amount represents
realized loss from the sale of our marketable securities to finance
the acquisition of Antares.
|
(5)
|
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.
|
(6)
|
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
EBITDA
(Unaudited)
(In
millions)
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
2022
|
|
2023 Guidance
Range
|
Percentage
Change
|
GAAP Net
Income
|
|
$
202
|
|
|
|
Adjustments:
|
|
|
|
|
|
Investment and other
income
|
|
(1)
|
|
|
|
Interest
expense
|
|
17
|
|
|
|
Income tax
expense
|
|
47
|
|
|
|
Depreciation and
amortization
|
|
50
|
|
|
|
EBITDA
|
|
$
315
|
|
$ 415 -
440
|
32% -
40%
|
Adjustments:
|
|
|
|
|
|
Transaction costs for
business combinations
|
|
22
|
|
|
|
Severance and
share-based compensation acceleration expense
|
|
23
|
|
|
|
Adjusted
EBITDA
|
|
$
360
|
|
$ 415 -
440
|
15% -
22%
|
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SOURCE Halozyme Therapeutics, Inc.