HALO Halozyme Therapeutics Incorporated

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Halozyme Therapeutics, Inc. is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies.

As the innovators of ENHANZE® drug delivery technology (“ENHANZE”) with our proprietary enzyme, rHuPH20, our commercially validated solution is used to facilitate the subcutaneous (“SC”) delivery of injected drugs and fluids with the goal of improving the patient experience with rapid SC delivery and reduced treatment burden. We license our technology to biopharmaceutical companies to collaboratively develop products that combine ENHANZE with our partners’ proprietary compounds. We also develop, manufacture and commercialize, for ourselves or with our partners, drug-device combination products using our advanced auto-injector technologies that are designed to provide commercial or functional advantages such as improved convenience, reliability and tolerability, and enhanced patient comfort and adherence.

Our ENHANZE partners’ approved products and product candidates are based on rHuPH20, our patented recombinant human hyaluronidase enzyme. rHuPH20 works by breaking down hyaluronan (“HA”), a naturally occurring carbohydrate that is a major component of the extracellular matrix of the SC space. This temporarily reduces the barrier to bulk fluid flow allowing for improved and more rapid SC delivery of high dose, high volume injectable biologics, such as monoclonal antibodies and other large therapeutic molecules, as well as small molecules and fluids. We refer to the application of rHuPH20 to facilitate the delivery of other drugs or fluids as ENHANZE. We license our ENHANZE technology to form collaborations with biopharmaceutical companies that develop and/or market drugs requiring or benefiting from injection via the SC route of administration. In the development of proprietary intravenous (“IV”) drugs combined with our ENHANZE technology, data has been generated supporting the potential for ENHANZE to reduce patient treatment burden, as a result of shorter duration of SC administration with ENHANZE compared to IV administration. ENHANZE may enable fixed-dose SC dosing compared to weight-based dosing typically required for IV administration, extend the dosing interval for drugs that are already administered subcutaneously and potentially allow for lower rates of infusion-related reactions. ENHANZE may enable more flexible treatment options such as home administration by a healthcare professional or potentially the patient or caregiver. Lastly, certain proprietary drugs co-formulated with ENHANZE have been granted additional exclusivity, extending the patent life of the product beyond the patent expiry of the proprietary IV drug.

We currently have ENHANZE collaborations and licensing agreements with F. Hoffmann-La Roche, Ltd. and Hoffmann-La Roche, Inc. (“Roche”), Takeda Pharmaceuticals International AG and Baxalta US Inc. (“Takeda”), Pfizer Inc. (“Pfizer”), Janssen Biotech, Inc. (“Janssen”), AbbVie, Inc. (“AbbVie”), Eli Lilly and Company (“Lilly”), Bristol-Myers Squibb Company (“BMS”), argenx BVBA (“argenx”), ViiV Healthcare (the global specialist HIV Company majority owned by GlaxoSmithKline) (“ViiV”), Chugai Pharmaceutical Co., Ltd. (“Chugai”) and Acumen Pharmaceuticals, Inc. (“Acumen”). In addition to receiving upfront licensing fees from our ENHANZE collaborations, we are entitled to receive event and sales-based milestone payments, revenues from the sale of bulk rHuPH20 and royalties from commercial sales of approved partner products co-formulated with ENHANZE. We currently earn royalties from sales of eight commercial products including sales of one commercial product from each of the Takeda, Janssen and argenx collaborations and five commercial products from the Roche collaboration.

We have commercialized auto-injector products with several pharmaceutical companies including Teva Pharmaceutical Industries, Ltd. (“Teva”) and Otter Pharmaceuticals, LLC (“Otter”). We have development programs including auto-injectors with Idorsia Pharmaceuticals Ltd. (“Idorsia”).

Our commercial portfolio of proprietary products includes Hylenex®, utilizing rHuPH20, and XYOSTED®, utilizing our auto-injector technology.

Except where specifically noted or the context otherwise requires, references to “Halozyme,” “the Company,” “we,” “our,” and “us” in these notes to our condensed consolidated financial statements refer to Halozyme Therapeutics, Inc. and each of its directly and indirectly wholly owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies.

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Basis of Presentation

The accompanying interim unaudited condensed consolidated financial statements have been prepared for purposes of and in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Operating results for interim periods are not necessarily indicative of the operating results for an entire fiscal year.

The accompanying condensed consolidated financial statements include the accounts of Halozyme Therapeutics, Inc. and our wholly owned subsidiaries, Halozyme, Inc. and Antares Pharma, Inc., and Antares Pharma, Inc.’s wholly owned Swiss subsidiaries, Antares Pharma IPL AG and Antares Pharma AG. All intercompany accounts and transactions have been eliminated.

Use of Estimates

The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that we believe to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from our estimates.

Cash Equivalents and Marketable Securities

Cash equivalents consist of highly liquid investments, readily convertible to cash, which mature within 90 days or less from the date of purchase. As of June 30, 2024, our cash and cash equivalents consisted of money market funds, bank certificate of deposits, U.S. treasury securities and demand deposits at commercial banks.

Marketable securities are investments with original maturities of more than 90 days from the date of purchase that are specifically identified to fund current operations. Marketable securities are considered available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from the sale of these investments to fund our operations, as necessary. Such available-for-sale investments are carried at fair value with unrealized gains and losses recorded in other comprehensive income and included as a separate component of stockholders’ equity. The cost of marketable securities is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in investment and other income, net in our condensed consolidated statements of income. We use the specific identification method for calculating realized gains and losses on marketable securities sold. None of the realized gains and losses and declines in value that were judged to be as a result of credit loss on marketable securities, if any, are included in investment and other income, net in our condensed consolidated statements of income.

Fair Value of Financial Instruments

The authoritative guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions.

Our financial instruments include cash equivalents, available-for-sale marketable securities, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses and long-term debt. Fair value estimates of these instruments are made at a specific point in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments.

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Available-for-sale marketable securities consist of asset-backed securities, corporate debt securities, U.S. Treasury securities, agency bonds and commercial paper, and are measured at fair value using Level 1 and Level 2 inputs. Level 2 financial instruments are valued using market prices on less active markets and proprietary pricing valuation models with observable inputs, including interest rates, yield curves, maturity dates, issue dates, settlement dates, reported trades, broker-dealer quotes, issue spreads, benchmark securities or other market related data. We obtain the fair value of Level 2 investments from our investment manager, who obtains these fair values from a third-party pricing source. We validate the fair values of Level 2 financial instruments provided by our investment manager by comparing these fair values to a third-party pricing source.

Accounts Receivable, net

Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of estimated prompt pay discounts, distribution fees and chargebacks. We believe the risk of accounts being uncollectible is minimal; therefore, no significant allowances for doubtful accounts were established as of June 30, 2024 and December 31, 2023.

Inventories

Inventories are stated at lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are reviewed periodically for potential excess, dated or obsolete status. We evaluate the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand.

Leases

We have entered into operating leases primarily for real estate and automobiles. These leases have contractual terms which range from three years to twelve years. We determine if an arrangement contains a lease at inception. Right of use (“ROU”) assets and liabilities resulting from operating leases are included in property and equipment, accrued expenses and other long-term liabilities on our condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the discount rate to calculate the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our leases often include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that we will exercise that option. Short-term leases with an initial term of 12 months or less are not recorded on our condensed consolidated balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term.

We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as automobiles, we account for the lease and non-lease components as a single lease component.

Property and Equipment, Net

Property and equipment, including ROU assets are recorded at cost, less accumulated depreciation and amortization. Equipment is depreciated using the straight-line method over its estimated useful life ranging from three years to ten years and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter.

Impairment of Long-Lived Assets

We account for long-lived assets in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable.

Comprehensive Income

Comprehensive income is defined as the change in equity during the period from transactions and other events and circumstances from non-owner sources.

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Convertible Notes

The 2024 Convertible Notes, the 2027 Convertible Notes and the 2028 Convertible Notes (collectively, the “Convertible Notes”) are accounted for in accordance with authoritative guidance for debt and derivatives. We evaluate all the embedded conversion options contained in the Convertible Notes to determine if there are embedded features that require bifurcation as a derivative as required by U.S. GAAP. Based on our analysis, we account for each of our Convertible Notes as single units of accounting, a liability, because we concluded that the conversion features do not require bifurcation as a derivative under embedded derivative authoritative guidance.

Cash Flow Hedges - Currency Risks

Beginning in the second quarter of 2023, we entered into a cash flow hedging program to mitigate foreign currency exchange risk associated with forecasted royalty revenue denominated in Swiss francs. Under the program, we can hedge these forecasted royalties up to a maximum of four years into the future. We hedge these cash flow exposures to reduce the risk of our earnings and cash flows being adversely affected by fluctuations in exchange rates.

In accordance with the hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and are highly effective in offsetting changes to future cash flows on hedged transactions. Both at inception of the hedge and on an ongoing basis, we assess whether the foreign currency forward contracts are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. If we determine a (i) foreign currency forward contract is not highly effective as a cash flow hedge, (ii) foreign currency forward contract has ceased to be a highly effective hedge or (iii) forecasted transaction is no longer probable of occurring, we would discontinue hedge accounting treatment prospectively. We measure effectiveness based on the change in fair value of the forward currency forward contract and the fair value of the hypothetical foreign currency forward contract with terms that match the critical terms of the risk being hedged. No portion of our foreign currency forward contracts were excluded from the assessment of hedge effectiveness. As of June 30, 2024, all hedges were determined to be highly effective.

The assets or liabilities associated with our hedging contracts are recorded at fair market value in prepaid expense and other current assets, accrued expenses, or other long-term liabilities, respectively, in our condensed consolidated balance sheets. Gains and losses related to changes in the fair market value of these hedging contracts are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) within stockholder’s equity in our condensed consolidated balance sheets and reclassified to royalty revenue in our condensed consolidated statements of income in the same period as the recognition of the underlying hedged transaction. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, within the defined hedge period, we reclassify the gains or losses on the related cash flow hedge from AOCI to royalties revenue in our condensed consolidated statements of income. Settlements from the cash flow hedge are included in operating activities on the condensed consolidated statements of cash flows. Since the fair market value of these hedging contracts is derived from current market rates, the hedging contracts are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. As of June 30, 2024, amounts expected to be recognized as a net gain out of AOCI into our condensed consolidated statements of income during the next 12 months are not material.

Business Combinations

Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill. Costs incurred to complete a business combination, such as legal and other professional fees, are expensed as incurred.

If the initial accounting for a business combination is incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in our condensed consolidated statements of income.

Goodwill, Intangible Assets and Other Long-Lived Asset

Assets acquired, including intangible assets and in-process research and development (“IPR&D”), and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant research and development project (i.e., upon commercialization), the IPR&D

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asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment.

Goodwill and IPR&D are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and IPR&D are considered to be impaired if the carrying value of the reporting unit or IPR&D asset exceeds its respective fair value.

We perform our goodwill impairment analysis at the reporting unit level, which aligns with our reporting and operating segment structure and availability of discrete financial information. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting unit is less than the carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and our overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair value of our reporting unit is less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair value of the reporting unit with the carrying value, including goodwill. If the carrying amount of the reporting unit exceeds the fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test.

Our identifiable intangible assets with finite useful lives are typically comprised of acquired device technologies and product rights. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives.

We perform regular reviews to determine if any event has occurred that may indicate intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.

Revenue Recognition

We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements and (iii) from sales of our proprietary and partnered products. We recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the performance obligations.

ENHANZE and Device Royalties

Under the terms of our ENHANZE collaboration and license agreements, our partners will pay us royalties at an on average mid-single digit percent rate of their sales if products under the collaboration are commercialized. All amounts owed to us are noncancelable after the underlying triggering event occurs, and nonrefundable once paid. Unless terminated earlier in accordance with its terms, collaborations generally continue in effect until the last to expire royalty payment term, as determined on a product by product and country by country basis, with each royalty term starting on the first commercial sale of that product and ending the later of: (i) a specified period or term set forth in the agreement or (ii) expiration of the last to expire of the valid claims of our patents covering rHuPH20 or other specified patents developed under the collaboration which valid claim covers a product developed under the collaboration. In general, when there are no valid claims of a specified patent developed under the collaboration covering the product in a given country, the royalty rate is reduced for those sales in that country upon the expiration of our patents covering rHuPH20. Janssen’s patents covering DARZALEX SC do not impact the timing for this royalty reduction. Partners may terminate the agreement prior to expiration for any reason in its entirety or on a target-by-target basis generally upon 90 days prior written notice to us. Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided; however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid. Sales-based milestones and royalties are recognized in the period the underlying sales or milestones occur. We do not receive final royalty reports from our ENHANZE partners until after we complete our financial statements for a prior quarter. Therefore, we recognize revenue based on estimates of the royalty earned, which are based on internal estimates and available preliminary reports provided by our partners. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments.

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We also earn royalties in connection with several of our licenses granted under license and development arrangements with our device partners. These royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digits to low double digits and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to us within 45 to 60 days after the end of the period in which the commercial sales are made. We base our estimates of royalties earned on actual sales information from our partners when available or estimated, prescription sales from external sources and estimated net selling price. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments.

Revenue under ENHANZE and Device Collaborative Agreements

ENHANZE Collaboration and License Agreements

Under these agreements, we grant the collaboration partner a worldwide license to develop and commercialize products using our ENHANZE technology to combine our patented rHuPH20 enzyme with their proprietary biologics directed at up to a specified number of targets. Targets are usually licensed on an exclusive, global basis. Targets selected subsequent to inception of the arrangement generally require payment of an additional license fee. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement. We are responsible for supply of bulk rHuPH20 based on the collaboration partner’s purchase orders, and may also be separately engaged to perform research and development services. While these collaboration agreements are similar in that they originate from the same framework, each one is the result of an arms-length negotiation and thus may vary from one to the other.

We generally collect an upfront license payment from collaboration partners, and are also entitled to receive event-based payments subject to collaboration partners’ achievement of specified development, regulatory and sales-based milestones. In several agreements, collaboration partners pay us annual fees to maintain their exclusive license rights if they are unable to advance product development to specified stages. We earn separate fees for bulk rHuPH20 supplies and research and development services.

Although these agreements are in form identified as collaborative agreements, we concluded for accounting purposes they represent contracts with customers and are not subject to accounting literature on collaborative arrangements. This is because we grant to partners licenses to our intellectual property and provide supply of bulk rHuPH20 and research and development services which are all outputs of our ongoing activities, in exchange for respective consideration. Under these collaborative agreements, our partners lead development of assets, and we do not share in significant financial risks of their development or commercialization activities. Accordingly, we concluded our collaborative agreements are appropriately accounted for pursuant to U.S. GAAP.

Under all of our ENHANZE collaborative agreements, we have identified licenses to use functional intellectual property as the only performance obligation. The intellectual property underlying the license is our proprietary ENHANZE technology which represents application of rHuPH20 to facilitate delivery of drugs. Each of the licenses grants the partners rights to use our intellectual property as it exists and is identified on the effective date of the license, because there is no ongoing development of the ENHANZE technology required. Therefore, we recognize revenue from licenses at the point when the license becomes effective and the partner has received access to our intellectual property, usually at the inception of the agreement.

When partners can select additional targets to add to the licenses granted, we consider these rights to be options. We evaluate whether such options contain material rights, i.e. have exercise prices that are discounted compared to what we would charge for a similar license to a new partner. The exercise price of these options includes a combination of the target selection fees, event-based milestone payments and royalties. When these amounts in aggregate are not offered at a discount that exceeds discounts available to other customers, we conclude the option does not contain a material right, and we consider grants of additional licensing rights upon option exercises to be separate contracts (target selection contracts).

Generally, we provide indemnification and protection of licensed intellectual property for our customers. These provisions are part of assurance that the licenses meet the agreements’ representations and are not obligations to provide goods or services.

We also fulfill purchase orders for supply of bulk rHuPH20 and perform research and development services pursuant to project authorization forms for our partners, which represent separate contracts. In addition to our licenses, we price our supply of bulk rHuPH20 and research and development services at our regular selling prices, called standalone selling prices (“SSP”). Therefore, our partners do not have material rights to order these items at prices not reflective of SSP. Refer to the discussion below regarding recognition of revenue for these separate contracts.

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Transaction price for a contract represents the amount to which we are entitled in exchange for providing goods and services to the customer. Transaction price does not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of revenue when the uncertainty is resolved. Apart from the upfront license payment (or target selection fees in the target selection contracts), all other fees we may earn under our collaborative agreements are subject to significant uncertainties of product development. Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are actually achieved. This generally relates to milestones such as obtaining marketing authorization approvals. With respect to other development milestones, e.g., dosing of a first patient in a clinical trial, achievement could be considered probable prior to its actual occurrence, based on the progress towards commencement of the trial. In order to evaluate progress towards commencement of a trial, we assess the status of activities leading up to our partner’s initiation of a trial such as feedback received from the applicable regulatory authorities, completion of Investigational New Drug (“IND”) or equivalent filings, readiness and availability of drug, readiness of study sites and our partner’s commitment of resources to the program. We do not include any amounts subject to uncertainties in the transaction price until it is probable that the amount will not result in a significant reversal of revenue in the future. At the end of each reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price.

When target exchange rights are held by partners, and the amounts attributed to these rights are not refundable, they are included in the transaction price. However, they are recorded as deferred revenues because we have a potential performance obligation to provide a new target upon an exchange right being exercised. These amounts are recognized in revenue when the right of exchange expires or is exercised.

Because our agreements have one type of performance obligation (licenses) which are typically all transferred at the same time at agreement inception, allocation of transaction price often is not required. However, allocation is required when licenses for some of the individual targets are subject to rights of exchange, because revenue associated with these targets cannot be recognized. When allocation is needed, we perform an allocation of the upfront amount based on relative SSP of licenses for individual targets. We determine license SSP using an income-based valuation approach utilizing risk-adjusted discounted cash flow projections of the estimated return a licensor would receive. When amounts subject to uncertainties, such as milestones and royalties, are included in the transaction price, we attribute them to the specific individual target licenses which generate such milestone or royalty amounts.

We also estimate SSP of bulk rHuPH20 and research and development services, to determine that our partners do not have material rights to order them at discounted prices. For supplies of bulk rHuPH20, because we effectively act as a contract manufacturer to our partners, we estimate and charge SSP based on the typical contract manufacturer margins consistent with all of our partners. We determine SSP of research and development services based on a fully-burdened labor rate. Our rates are comparable to those we observe in other collaborative agreements. We also have a history of charging similar rates to all of our partners.

Upfront amounts allocated to licenses to individual targets are recognized as revenue when the license is transferred to the partner, as discussed above, if the license is not subject to exchange rights, or when the exchange right expires or is exercised. Development milestones and other fees are recognized in revenue when they are included in the transaction price, because by that time, we have already transferred the related license to the partner.

In contracts to provide research and development services, such services represent the only performance obligation. The fees are charged based on hours worked by our employees and the fixed contractual rate per hour, plus third-party pass-through costs, on a monthly basis. We recognize revenues as the related services are performed based on the amounts billed, as the partner consumes the benefit of research and development work simultaneously as we perform these services, and the amounts billed reflect the value of these services to the customer.

Device License, Development and Supply Arrangements

We have several license, development and supply arrangements with pharmaceutical partners, under which we grant a license to our device technology and provide research and development services that often involve multiple performance obligations and highly-customized deliverables. For such arrangements, we identify each of the promised goods and services within the contract and the distinct performance obligations at inception of the contract and allocate consideration to each performance obligation based on relative SSP, which is generally determined based on the expected cost plus mark-up.

If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, we recognize revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control of the product is transferred to the customer. Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment.

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Our payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. We record a contract liability for cash received in advance of performance, which is presented within deferred revenue and deferred revenue, long-term in our condensed consolidated balance sheets and recognized as revenue in our condensed consolidated statements of income when the associated performance obligations have been satisfied.

License fees and milestones received in exchange for the grant of a license to our functional intellectual property, such as patented technology and know-how in connection with a partnered development arrangement, are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is generally not distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal of revenue will not occur when the associated uncertainty is resolved.

Refer to Note 4, Revenue, for further discussion on our collaborative arrangements.

Product Sales, Net

Proprietary Product Sales

Our commercial portfolio of proprietary products includes XYOSTED and Hylenex recombinant which we sell primarily to wholesale pharmaceutical distributors and specialty pharmacies, who sell the products to hospitals, retail chain drug stores and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual packages of products represents performance obligations under each purchase order. We use contract manufacturers to produce our proprietary products and third-party logistics (“3PL”) vendors to process and fulfill orders. We concluded we are the principal in the sales to wholesalers because we control access to services rendered by both vendors and direct their activities. We have no significant obligations to wholesalers to generate pull-through sales.

Revenue is recognized when control has transferred to the customer, which is typically upon delivery, at the net selling price, which reflects the variable consideration for which reserves and sales allowances are established for estimated returns, wholesale distribution fees, prompt payment discounts, government rebates and chargebacks, plan rebate arrangements and patient discount and support programs. We recognize revenue from product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay us. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, we do not believe they have a significant incentive to return the product to us.

The determination of certain reserves and sales allowances requires us to make a number of judgements and estimates to reflect our best estimate of the transaction price and the amount of consideration to which we believe we would be ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and estimated future percentage of rebates incurred on sales, historical and future insurance plan billings, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. The estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, rebates and customer co-pay support programs are included in accrued expenses and accounts receivable, net in our condensed consolidated balance sheets upon recognition of revenue from product sales. We monitor actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts differ from our estimates, we make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment.

Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when wholesalers sell our products at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”), Pharmacy Benefit Managers (“PBMs”) and government programs. We also pay quarterly distribution fees to certain wholesalers for inventory reporting and chargeback processing, and to PBMs and GPOs as administrative fees for services and for access to their members. We concluded the benefits received in exchange for these fees are not distinct from our sales of our products, and accordingly we apply these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of our products and our lengthy return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product.

We estimate the transaction price when we receive each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. We have compiled historical experience and data to estimate future returns and chargebacks of our products and the impact of the other discounts and fees we pay. When estimating these adjustments to the transaction price, we reduce it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known.

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Each purchase order contains only one type of product, and is usually shipped to the wholesaler in a single shipment. Therefore, allocation of the transaction price to individual packages is not required.

In connection with the orders placed by wholesalers, we incur costs such as commissions to our sales representatives. However, as revenue from product sales is recognized upon delivery to the wholesaler, which occurs shortly after we receive a purchase order, we do not capitalize these commissions and other costs, based on application of the practical expedient allowed within the applicable guidance.

Partnered Product Sales

Bulk rHuPH20

We sell bulk rHuPH20 to partners for use in research and development and, subsequent to receiving marketing approval, we sell it for use in collaboration commercial products. Sales are made pursuant to purchase orders subject to the terms of the collaborative agreement or a supply agreement, and delivery of units of bulk rHuPH20 represent performance obligations under each purchase order. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce bulk rHuPH20 and have concluded we are the principal in the sales to partners. The transaction price for each purchase order of bulk rHuPH20 is fixed based on the cost of production plus a contractual markup, and is not subject to adjustments. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product.

We recognize revenue from the sale of bulk rHuPH20 as product sales and related cost of sales upon transfer of title to our partners. At that time, the partners take control of the product, bear the risk of loss of ownership, and have an enforceable obligation to pay us.

Devices

We are party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which we produce and are the exclusive supplier of certain products, devices and/or components. Revenue is recognized when or as control of the goods transfers to the customer as discussed below.

We are the exclusive supplier of OTREXUP® to Otter. Because this product is custom manufactured with no alternative use and we have a contractual right to payment for performance completed to date, control is continuously transferred to the customer as the product is produced pursuant to firm purchase orders. Revenue is recognized over time using the output method based on the contractual selling price and number of units produced. The amount of revenue recognized in excess of the amount shipped/billed to the customer, if any, is recorded as contract assets in our condensed consolidated balance sheets due to the short-term nature in which the amount is ultimately expected to be billed and collected from the customer.

Other device partnered product sales are recognized at the point in time in which control is transferred to the customer, which is typically upon shipment. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no right of return. Revenue is recognized at the transaction price, which includes the contractual per unit selling price and estimated variable consideration, such as volume-based pricing arrangements, if any. We recognize revenue, including the estimated variable consideration we expect to receive for contract margin on future commercial sales, upon shipment of the goods to our partner. The estimated variable consideration is recognized at an amount we believe is not subject to significant reversal of revenue based on historical experience and is adjusted at each reporting period if the most likely amount of expected consideration changes or becomes fixed.

Cost of Sales

Cost of sales consists primarily of raw materials, third-party manufacturing costs, fill and finish costs, freight costs, internal costs and manufacturing overhead associated with the production of proprietary and partnered products. Cost of sales also consists of the write-down of excess, dated and obsolete inventories and the write-off of inventories that do not meet certain product specifications, if any.

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Research and Development Expenses

Research and development expenses include salaries and benefits, allocation of facilities and other overhead expenses, research related manufacturing services, contract services, and other outside expenses related to manufacturing, preclinical and regulatory activities and our partner development platforms. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to our research and development efforts and have no alternative future uses.

We are obligated to make upfront payments upon execution of certain research and development agreements. Advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as expense as the related goods are delivered or the related services are performed or such time when we do not expect the goods to be delivered or services to be performed.

Share-Based Compensation

We record compensation expense associated with stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and shares issued under our employee stock purchase plan (“ESPP”) in accordance with the authoritative guidance for share-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation expense for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of share-based compensation expense as they occur.

Income Taxes

We provide for income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases at each reporting period. We measure deferred tax assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. Significant judgment is required by management to determine our provision for income taxes, our deferred tax assets and liabilities, and any associated valuation allowances recorded against our net deferred tax assets, which are based on complex and evolving tax regulations. Deferred tax assets (“DTA”) and other tax benefits are recorded when they are more likely than not to be realized. On a quarterly basis, we assess the need for valuation allowance on our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all of our DTAs will be realized. We recorded a provision for income taxes of $24.5 million and $43.7 million using an effective tax rate of 20.5% and 19.1% for the three and six months ended June 30, 2024. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily due to state income taxes, research and development credit generations, tax benefits on the Foreign Derived Intangible Income Deduction (“FDII”) (net of reserves), tax detriments on 162(m) and other share-based compensation.

Segment Information

We operate our business in one operating segment, which includes all activities related to the research, development and commercialization of our proprietary enzymes and devices. This segment also includes revenues and expenses related to (i) research and development and manufacturing activities conducted under our collaborative agreements with third parties, and (ii) product sales of proprietary and partnered products. The chief operating decision-maker (“CODM”), our Chief Executive Officer (“CEO”), reviews the operating results on an aggregate basis and manages the operations as a single operating segment.

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Adoption and Pending Adoption of Recent Accounting Pronouncements

The following table provides a brief description of recently issued accounting standards, those adopted in the current period and those not yet adopted:

Standard

Description

Effective Date

Adoption Method

Effect on the Financial Statements or Other Significant Matters

In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures.

The new standard is intended to improve annual and interim reportable segment disclosure requirements regardless of number of reporting units, primarily through enhanced disclosures of significant expenses. The amendment requires public entities to disclose significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit and loss.

Annual periods beginning after December 15, 2023 (our 2024 Form 10-K), and interim periods within fiscal years beginning after December 15, 2024 (our Q1 2025 Form 10-Q) - Early adoption is permitted, including adoption in an interim period

Retrospective

We are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures.

In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures.

The new guidance includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction.

Annual periods beginning after December 15, 2024 (our 2025 Form 10-K) - Early adoption is permitted

Prospective or Retrospective

We are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures.

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Available-for-sale marketable securities consisted of the following (in thousands):

						June 30, 2024
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Asset-backed securities						$	928					$	—					$	(2)					$	926
Corporate debt securities						52,579						—						(126)						52,453
U.S. treasury securities						282,769						1						(170)						282,600
Agency bonds						5,199						—						(12)						5,187
Total marketable securities, available-for-sale						$	341,475					$	1					$	(310)					$	341,166

						December 31, 2023
						Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Estimated Fair Value
Asset-backed securities						$	3,512					$	—					$	(8)					$	3,504
Corporate debt securities						6,022						1						(10)						6,013
U.S. treasury securities						175,996						200						(12)						176,184
Agency bonds						16,119						—						(16)						16,103
Commercial paper						15,826						—						—						15,826
Total marketable securities, available-for-sale						$	217,475					$	201					$	(46)					$	217,630

As of June 30, 2024, 41 available-for-sale marketable securities with a fair market value of $315.5 million were in a gross unrealized loss position of $0.3 million. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of June 30, 2024 because we do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis.

The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands):

						June 30, 2024						December 31, 2023
Due within one year						$	304,661					$	197,633
Due after one year but within five years						36,505						19,997
Total estimated fair value of contractual maturities, available-for-sale						$	341,166					$	217,630

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The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands):

						June 30, 2024																		December 31, 2023
						Level 1						Level 2						Total Estimated Fair Value						Level 1						Level 2						Total Estimated Fair Value
Assets
Cash equivalents
Money market funds						$	56,965					$	—					$	56,965					$	22,142					$	—					$	22,142
U.S. treasury securities						20,000						—						20,000						2,000						—						2,000
Available-for-sale marketable    securities
Asset-backed securities						—						926						926						—						3,504						3,504
Corporate debt securities						—						52,453						52,453						—						6,013						6,013
U.S. treasury securities						282,600						—						282,600						176,184						—						176,184
Agency bonds						5,187						—						5,187						16,103						—						16,103
Commercial paper						—						—						—						—						15,826						15,826
Derivative instruments
Currency hedging contracts (1)						—						1,389						1,389						—						—						—
Total assets						$	364,752					$	54,768					$	419,520					$	216,429					$	25,343					$	241,772
Liabilities
Derivative instruments
Currency hedging contracts (1)						$	—					$	688					$	688					$	—					$	9,480					$	9,480

(1) Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of June 30, 2024, the derivative assets and liabilities recorded within prepaid expenses and other current assets, prepaid expense and other assets and other long-term liabilities in our condensed consolidated balance sheets were $1.2 million, $0.2 million and $0.7 million, respectively.

We had no available for sale securities that were classified within Level 3 as of June 30, 2024 and December 31, 2023.

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Our disaggregated revenues were as follows (in thousands):

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Royalties						$	124,918					$	111,740					$	245,511					$	211,380
Product sales, net
Proprietary product sales						44,139						32,293						79,394						60,254
Bulk rHuPH20 sales						24,634						27,133						35,144						49,202
Device partnered product sales						10,113						14,463						22,931						25,227
Total product sales, net						78,886						73,889						137,469						134,683
Revenues under collaborative agreements
Event-based development and regulatory milestones and other fees						25,500						33,000						39,500						33,000
Device licensing and development revenue						2,049						2,409						4,752						4,118
Total revenues under collaborative agreements						27,549						35,409						44,252						37,118
Total revenues						$	231,353					$	221,038					$	427,232					$	383,181

During the three months ended June 30, 2024, we recognized revenue related to licenses granted to partners in prior periods in the amount of $150.4 million. This amount represents royalties earned in the current period in addition to $25.5 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $0.5 million during the three months ended June 30, 2024 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2023.

During the six months ended June 30, 2024, we recognized revenue related to licenses granted to partners in prior periods in the amount of $285.0 million. This amount represents royalties earned in the current period in addition to $39.5 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $0.6 million during the six months ended June 30, 2024 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2023.

Accounts receivable, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands):

						June 30, 2024						December 31, 2023
Accounts receivable, net						$	210,416					$	233,254
Other contract assets						4,108						956
Deferred revenues						4,856						4,048

As of June 30, 2024, the amounts included in the transaction price of our contracts with customers, including collaboration partners, and allocated to goods and services not yet provided were $89.2 million, of which $84.3 million relates to unfulfilled product purchase orders and $4.9 million has been collected and is reported as accrued expense and other long-term liabilities in our condensed consolidated balance sheets. The unfulfilled product purchase orders are estimated to be delivered by the end of 2025. Of the total deferred revenues of $4.9 million, $1.3 million is expected to be used by our customers within the next 12 months.

We recognized contract assets of $4.1 million as of June 30, 2024, which related to development milestones deemed probable of receipt for intellectual property licenses granted to partners in prior periods and for goods or services when control has transferred to the customer, and corresponding revenue is recognized on an over time basis but is not yet billable to the customer in accordance with the terms of the contract.

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Accounts receivable, net and contract assets consisted of the following (in thousands):

						June 30, 2024						December 31, 2023
Accounts receivable from product sales to partners						$	29,307					$	58,588
Accounts receivable from revenues under collaborative agreements						9,803						16,183
Accounts receivable from royalty payments						128,015						118,170
Accounts receivable from other product sales						49,909						47,060
Contract assets						4,108						956
Total accounts receivable and contract assets						221,142						240,957
Allowance for distribution fees and discounts						(6,618)						(6,747)
Total accounts receivable, net and contract assets						$	214,524					$	234,210

Inventories, net consisted of the following (in thousands):

						June 30, 2024						December 31, 2023
Raw materials						$	27,223					$	23,646
Work-in-process						36,690						34,025
Finished goods						126,643						69,930
Total inventories, net						190,556						127,601
Less long-term portion (1)						31,244						—
Total inventories, net current						$	159,312					$	127,601

(1) Long-term portion of inventories, net represents inventory expected to remain on hand beyond one year and therefore is included in prepaid expenses and other assets in the condensed consolidated balance sheets.

Prepaid expenses and other assets consisted of the following (in thousands):

						June 30, 2024						December 31, 2023
Prepaid manufacturing expenses						$	30,928					$	36,850
Other prepaid expenses						53,936						12,902
Other assets (1)						21,304						16,677
Total prepaid expenses and other assets						106,168						66,429
Less long-term portion (1)						(21,237)						(17,816)
Total prepaid expenses and other assets, current						$	84,931					$	48,613

(1) Excludes long-term inventories, net discussed in the table above.

Prepaid manufacturing expenses include raw materials, slot reservation fees and other amounts paid to contract manufacturing organizations. Such amounts are reclassified to work-in-process inventory as materials are used or the contract manufacturing organization services are complete.

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Property and equipment, net consisted of the following (in thousands):

						June 30, 2024						December 31, 2023
Research equipment						$	8,796					$	8,588
Manufacturing equipment						37,427						32,472
Computer and office equipment						9,183						9,722
Leasehold improvements						7,042						6,987
Subtotal						62,448						57,769
Accumulated depreciation and amortization						(22,239)						(19,661)
Subtotal						40,209						38,108
Right of use of assets						34,791						36,836
Total property and equipment, net						$	75,000					$	74,944

Depreciation and amortization expense was approximately $2.6 million and $2.8 million, inclusive of ROU asset amortization of $1.4 million and $1.4 million for the three months ended June 30, 2024 and 2023, respectively.

Depreciation and amortization expense was approximately $5.0 million and $5.4 million, inclusive of ROU asset amortization of $2.9 million and $2.8 million for the six months ended June 30, 2024 and 2023, respectively.

Accrued expenses consisted of the following (in thousands):

						June 30, 2024						December 31, 2023
Accrued compensation and payroll taxes						$	12,561					$	17,361
Accrued outsourced manufacturing expenses						13,523						12,361
Income taxes payable						29,265						963
Product returns and sales allowance						42,653						41,932
Other accrued expenses						19,771						33,584
Lease liability						30,664						32,197
Total accrued expenses						148,437						138,398
Less long-term portion						(30,507)						(37,720)
Total accrued expenses, current						$	117,930					$	100,678

Expense associated with the accretion of the lease liabilities was approximately $0.6 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively and $1.2 million and $1.3 million for the six months ended June 30, 2024 and 2023, respectively. Total lease expense for the three months ended June 30, 2024 and 2023 was $2.0 million and $2.0 million, respectively, and $4.0 million and $4.1 million for the six months ended June 30, 2024 and 2023, respectively.

Cash paid for amounts related to leases for the three months ended June 30, 2024 and 2023 was $1.7 million and $1.7 million, respectively, and $3.5 million and $3.4 million for the six months ended June 30, 2024 and 2023, respectively.

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Goodwill

A summary of the activity impacting goodwill is presented below (in thousands):

Balance as of December 31, 2023						$	416,821
Adjustment						—
Balance as of June 30, 2024						$	416,821

Intangible Assets

Our acquired intangible assets are amortized using the straight-line method over their estimated useful lives of seven to ten years. The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of June 30, 2024 (in thousands).

						Weighted Average Useful Life (in years)						Gross Carrying Value						Accumulated Amortization						Net Carrying Value
Auto Injector technology platform						7						$	402,000					$	120,878					$	281,122
XYOSTED proprietary product						10						136,200						28,668						107,532
Total finite-lived intangibles, net												$	538,200					$	149,546					$	388,654
ATRS-1902 (IPR&D)						Indefinite																		48,700
Total intangibles, net																								$	437,354

Estimated future annual amortization of finite-lived intangible assets is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors.

Year						Amortization Expense
Remainder of 2024						$	35,524
2025						71,049
2026						71,049
2027						71,049
2028						71,049
Thereafter						68,934
Total						$	388,654

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1.00% Convertible Notes due 2028

In August 2022, we completed the sale of $720.0 million in aggregate principal amount of 1.00% Convertible Senior Notes due 2028 (the “2028 Convertible Notes”). The net proceeds in connection with the issuance of the 2028 Convertible Notes, after deducting the initial purchasers’ fee of $18.0 million, was approximately $702.0 million. We also incurred additional debt issuance costs totaling $1.0 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount.

The 2028 Convertible Notes pay interest semi-annually in arrears on February 15th and August 15th of each year at an annual rate of 1.00%. The 2028 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2028 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2028 Convertible Notes have a maturity date of August 15, 2028.

Holders may convert their 2028 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2022, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the offering memorandum for the 2028 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, February 15, 2028 until the close of business on the second scheduled trading day immediately before the maturity date. As of June 30, 2024, the 2028 Convertible Notes were not convertible.

Upon conversion, we will pay cash for the settlement of principal, and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2028 Convertible Notes is 17.8517 shares of common stock per $1,000 in principal amount of 2028 Convertible Notes, equivalent to a conversion price of approximately $56.02 per share of our common stock. The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued or unpaid interest.

As of June 30, 2024, we were in compliance with all covenants and there was no material adverse change in our business, operations or financial condition.

Capped Call Transactions

In connection with the offering of the 2028 Convertible Notes, we entered into capped call transactions with certain counterparties (the “Capped Call Transactions”). The Capped Call Transactions are expected generally to reduce potential dilution to holders of our common stock upon conversion of the 2028 Convertible Notes or at our election (subject to certain conditions) offset any cash payments we are required to make in excess of the principal amount of such converted 2028 Convertible Notes. The cap price of the Capped Call Transactions is initially $75.4075 per share of common stock, representing a premium of 75% above the last reported sale price of $43.09 per share of common stock on August 15, 2022, and is subject to certain adjustments under the terms of the Capped Call Transactions. As of June 30, 2024, no capped calls had been exercised.

Pursuant to their terms, the capped calls qualify for classification within stockholders’ equity in our condensed consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $69.1 million for the Capped Calls, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital in our condensed consolidated balance sheets. The Capped Call Transactions are separate transactions entered into by us with the capped call Counterparties, are not part of the terms of the Convertible Notes, and do not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes do not have any rights with respect to the Capped Call Transactions.

0.25% Convertible Notes due 2027

In March 2021, we completed the sale of $805.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2027 (the “2027 Convertible Notes”). The net proceeds in connection with the issuance of the 2027 Convertible Notes, after deducting the initial purchasers’ fee of $20.1 million, was approximately $784.9 million. We also incurred additional debt issuance costs totaling $0.4 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount.

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The 2027 Convertible Notes pay interest semi-annually in arrears on March 1st and September 1st of each year at an annual rate of 0.25%. The 2027 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2027 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2027 Convertible Notes have a maturity date of March 1, 2027.

Holders may convert their 2027 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the offering memorandum for the 2027 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, September 1, 2026 until the close of business on the scheduled trading day immediately before the maturity date. As of June 30, 2024, the 2027 Convertible Notes were not convertible.

Upon conversion, we will pay cash for the settlement of principal and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2027 Convertible Notes is 12.9576 shares of common stock per $1,000 in principal amount of 2027 Convertible Notes, equivalent to a conversion price of approximately $77.17 per share of our common stock. The conversion rate is subject to adjustment.

As of June 30, 2024, we were in compliance with all covenants and there was no material adverse change in our business, operations or financial condition.

1.25% Convertible Notes due 2024

In November 2019, we completed the sale of $460.0 million in aggregate principal amount of 1.25% Convertible Senior Notes due 2024 (the “2024 Convertible Notes”). The net proceeds in connection with the issuance of the 2024 Convertible Notes, after deducting the initial purchasers’ fee of $12.7 million, was approximately $447.3 million. We also incurred debt issuance cost totaling $0.3 million. Debt issuance costs and the initial purchasers’ fee were presented as a debt discount.

In January 2021, we notified the note holders of our irrevocable election to settle the principal of the 2024 Convertible Notes in cash and for the premium, to deliver shares of common stock. The conversion rate for the 2024 Convertible Notes was 41.9208 shares of common stock per $1,000 in principal amount of 2024 Convertible Notes, equivalent to a conversion price of approximately $23.85 per share of our common stock. The conversion rate was subject to adjustment.

In January 2023, we issued a notice for the redemption of 2024 Convertible Notes. Holders of the notes could convert their notes at any time prior to the close of the business day prior to the redemption date. In March 2023, holders of the notes elected to convert the 2024 Convertible Notes in full. In connection with the conversion, we paid approximately $13.5 million in cash which included principal and accrued interest, and issued 288,886 shares of our common stock representing the intrinsic value based on the contractual conversion rate.

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Net Carrying Amounts of our Convertible Notes

The carrying amount and fair value of our Convertible Notes were as follows (in thousands).

						June 30, 2024						December 31, 2023
Principal amount
2027 Convertible Notes						$	805,000					$	805,000
2028 Convertible Notes						720,000						720,000
Total principal amount						$	1,525,000					$	1,525,000
Unamortized debt discount
2027 Convertible Notes						$	(9,237)					$	(10,950)
2028 Convertible Notes						(13,248)						(14,802)
Total unamortized debt discount						$	(22,485)					$	(25,752)
Carrying amount
2027 Convertible Notes						$	795,763					$	794,050
2028 Convertible Notes						706,752						705,198
Total carrying amount						$	1,502,515					$	1,499,248
Fair value based on trading levels (Level 2)
2027 Convertible Notes						$	768,920					$	695,826
2028 Convertible Notes						801,115						670,522
Total fair value of outstanding notes						$	1,570,035					$	1,366,348
Remaining amortization per period of debt discount (in years)
2027 Convertible Notes						2.7						3.2
2028 Convertible Notes						4.1						4.6

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The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes (in thousands).

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Coupon interest
2024 Convertible Notes						$	—					$	—					$	—					$	36
2027 Convertible Notes						503						503						1,006						1,006
2028 Convertible Notes						1,800						1,800						3,600						3,600
Total coupon interest						$	2,303					$	2,303					$	4,606					$	4,642
Amortization of debt discount
2024 Convertible Notes						$	—					$	—					$	—					$	24
2027 Convertible Notes						857						852						1,713						1,702
2028 Convertible Notes						778						767						1,553						1,531
Total amortization of debt discount						$	1,635					$	1,619					$	3,266					$	3,257
Interest expense
2024 Convertible Notes						$	—					$	—					$	—					$	60
2027 Convertible Notes						1,360						1,355						2,719						2,708
2028 Convertible Notes						2,578						2,567						5,153						5,131
Total interest expense						$	3,938					$	3,922					$	7,872					$	7,899
Effective interest rates
2027 Convertible Notes						0.7		%				0.7		%				0.7		%				0.7		%
2028 Convertible Notes						1.5		%				1.5		%				1.5		%				1.5		%

Revolving Credit and Term Loan Facilities

In May 2022, we entered into a credit agreement, which was subsequently amended in August 2022 (the “Amendment”), with Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other lenders and L/C Issuers party thereto (the “2022 Credit Agreement), evidencing a credit facility (the “2022 Facility”) that provides for (i) a $575 million revolving credit facility (the “Revolving Credit Facility”) and (ii) a $250 million term loan facility (the “Term Facility”). Concurrently, with the entry into the Amendment, we repaid the entire outstanding Term Loan Facility and repaid all outstanding loans under the Revolving Credit Facility under the 2022 Credit Agreement. The 2022 Facility will mature on November 30, 2026 unless either the Revolving Credit Facility or the Term Facility is extended prior to such date in accordance with the 2022 Credit Agreement.

The Term Facility requires quarterly scheduled repayments of the term loans in each of the first, second, third and fourth years following the closing in annual amounts equal to 2.50%, 5.00%, 7.50% and 10.00% of the initial principal amount of the term loans, respectively. The term loans are also subject to mandatory prepayments from the proceeds of certain asset sales, subject to our right to reinvest the proceeds thereof.

Borrowings under the 2022 Facility bear interest, at our option, at a rate equal to an applicable margin plus: (a) the applicable Term Secured Overnight Financing Rate (“SOFR”) (which includes a SOFR adjustment of 0.10%), or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the Bank of America prime rate, (3) the Term SOFR rate for an interest period of one month plus 1.10%, and (4) 1.00%. The margin for the 2022 Facility ranges, based on our consolidated total net leverage ratio, from 0.25% to 1.25% in the case of base rate loans and from 1.25% to 2.25% in the case of Term SOFR rate loans. In addition to paying interest on the outstanding principal under the Facility, we will pay (i) a commitment fee in respect of the unutilized commitments thereunder and (ii) customary letter of credit fees and agency fees. The commitment fees range from 0.15% to 0.35% per annum based on our consolidated net leverage ratio.

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As of June 30, 2024, the Revolving Credit Facility was undrawn. We incurred a total of $3.6 million in third-party costs related to the 2022 Credit Agreement which are recorded as debt issuance cost within prepaid expenses and other assets in our condensed consolidated balance sheets. As of June 30, 2024, the unamortized debt issuance cost related to the revolving credit facility was $1.9 million.

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The following table summarized share-based compensation expense included in our condensed consolidated statements of income related to share-based awards (in thousands):

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Research and development						$	2,568					$	3,670					$	5,913					$	6,771
Selling, general and administrative						6,903						5,952						13,432						10,817
Total share-based compensation expense						$	9,471					$	9,622					$	19,345					$	17,588

Share-based compensation expense by type of share-based award was as follows (in thousands):

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Stock options						$	3,894					$	4,190					$	8,193					$	7,645
RSUs, PSUs and ESPP						5,577						5,432						11,152						9,943
Total share-based compensation expense						$	9,471					$	9,622					$	19,345					$	17,588

We granted stock options to purchase approximately 0.1 million and 0.4 million shares of common stock during the three months ended June 30, 2024 and 2023, respectively and 0.6 million and 1.6 million during the six months ended June 30, 2024 and 2023, respectively. The exercise price of stock options granted is equal to the closing price of the common stock on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model (“Black-Scholes Model”). Expected volatility is based on historical volatility of our common stock. The expected term of options granted is based on analyses of historical employee termination rates and option exercises. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption is based on the expectation of no future dividend payments. The assumptions used in the Black-Scholes Model were as follows:

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Expected volatility						40.01 - 40.07%						40.26 - 40.72%						40.01 - 40.08%						39.68 - 40.72%
Average expected term (in years)						5.4						5.0						5.0						4.8
Risk-free interest rate						4.64 - 4.70%						3.37 - 3.70%						3.80 - 4.70%						3.37 - 4.27%
Expected dividend yield						—						—						—						—

In February 2021, our Board of Directors approved our 2021 ESPP and our stockholders approved the plan in May 2021. The ESPP enables eligible employees to purchase shares of our common stock at the end of each offering period at a price equal to 85% of the fair market value of the shares on the first business day or the last business day of the offering period, whichever is lower. Share purchases are funded through payroll deduction of at least 1% and up to 15% of an employee’s compensation for each payroll period, and no employee may purchase shares under the ESPP that exceeds $25,000 worth of our common stock for a calendar year. As of June 30, 2024, 2,579,790 shares were available for future purchase. The offering period is generally for a six-month period and the first offering period commenced on June 16, 2021. Offering periods shall commence on or about the sixteenth day of June and December of each year and end on or about the fifteenth day of the next December and June, respectively, occurring thereafter. During the six months ended June 30, 2024, 24,432 shares were issued pursuant to the ESPP.

---

Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized was as follows (in thousands, unless otherwise noted):

						June 30, 2024
						Unrecognized Expense						Remaining Weighted-Average Recognition Period (in years)
Stock options						$	35,381					2.56
RSUs						50,035						2.92
PSUs						9,577						2.05
ESPP						253						0.40

---

During the six months ended June 30, 2024 and 2023, we issued an aggregate of 475,828 and 240,223 shares of common stock, respectively, in connection with the exercises of stock options at a weighted average exercise price of $23.90 and $17.66 per share, respectively, for net proceeds of approximately $11.4 million and $4.2 million, respectively. For the six months ended June 30, 2024 and 2023, we issued 331,693 and 318,181 shares of common stock, respectively, upon vesting of certain RSUs and PSUs for which the RSU and PSU holders surrendered 88,825 and 70,733 RSUs and PSUs, respectively, to pay for minimum withholding taxes totaling approximately $6.5 million and $7.0 million, respectively. Stock options and unvested restricted units totaling approximately 8.0 million and 7.8 million shares of our common stock were outstanding as of June 30, 2024 and December 31, 2023, respectively.

Share Repurchases

In December 2021, the Board of Directors authorized a second capital return program to repurchase up to $750.0 million of outstanding stock over a three-year period.

We accelerated the initiation of our planned 2024 share repurchases and in November 2023, we entered into an Accelerated Share Repurchase (“ASR”) agreement with Bank of America, N.A. to accelerate the remaining $250.0 million of share repurchases remaining under the approved capital return program. Pursuant to the agreement, at the inception of the ASR, we paid $250.0 million to Bank of America, N.A. and took initial delivery of 5.5 million shares. In June 2024, we finalized the transaction at an average price per share of $38.35 and received an additional 1.1 million shares.

Our December 2021 share repurchase program was completed in June 2024 with a total of 19.1 million shares repurchased over the three-year period at an average price per share of $39.31. All shares repurchased under our capital return programs have been retired and have resumed their status of authorized and unissued shares

In February 2024, our Board of Directors authorized a new capital return program to repurchase up to $750.0 million of our outstanding common stock.

---

Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and the Convertible Notes are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive.

Potentially dilutive common shares issuable upon vesting of stock options, RSUs and PSUs are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of the Convertible Notes are determined using the if-converted method. Since we have committed to settle the principal amount of the Convertible Notes in cash upon conversion only, the number of shares for the conversion spread will be included as a dilutive common stock equivalent.

A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts):

						Three Months Ended June 30,												Six Months Ended June 30,
						2024						2023						2024						2023
Numerator
Net income						$	93,245					$	74,754					$	170,068					$	114,369
Denominator
Weighted average common shares outstanding for basic earnings per share						127,116						131,730						127,029						133,369
Dilutive potential common stock outstanding
Stock options						1,762						1,656						1,669						1,910
RSUs, PSUs and ESPP						344						157						399						363
Convertible Notes						—						—						—						116
Weighted average common shares outstanding for diluted earnings per share						129,222						133,543						129,097						135,758
Earnings per share
Basic						$	0.73					$	0.57					$	1.34					$	0.86
Diluted						$	0.72					$	0.56					$	1.32					$	0.84

Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions):

						Three Months Ended June 30,									Six Months Ended June 30,
						2024			2023						2024						2023
Anti-dilutive securities (1)						26.7			27.7						26.8						27.4

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From time to time, we may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of our business. Any of these claims could subject us to costly legal expenses and, while we generally believe that we have adequate insurance to cover many different types of liabilities, our insurance carriers may deny coverage or our policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on our condensed consolidated statements of income and balance sheets. Additionally, any such claims, whether or not successful, could damage our reputation and business. We currently are not a party to any legal proceedings, the adverse outcome of which, in our opinion, individually or in the aggregate, would have a material adverse effect on our condensed consolidated statements of income or balance sheets.

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v3.24.2.u1

Cover Page - shares	6 Months Ended
	Jun. 30, 2024	Jul. 31, 2024
Cover [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2024
Document Transition Report	false
Entity File Number	001-32335
Entity Registrant Name	HALOZYME THERAPEUTICS, INC.
Entity Incorporation, State or Country Code	DE
Entity Tax Identification Number	88-0488686
Entity Address, Address Line One	12390 El Camino Real
Entity Address, City or Town	San Diego
Entity Address, State or Province	CA
Entity Address, Postal Zip Code	92130
City Area Code	858
Local Phone Number	794-8889
Title of 12(b) Security	Common Stock, $0.001 par value
Trading Symbol	HALO
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		126,678,280
Entity Central Index Key	0001159036
Amendment Flag	false
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q2
Current Fiscal Year End Date	--12-31

v3.24.2.u1

Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Current assets
Cash and cash equivalents	$ 187,864	$ 118,370
Marketable securities, available-for-sale	341,166	217,630
Accounts receivable, net and contract assets	214,524	234,210
Inventories, net	159,312	127,601
Prepaid expenses and other current assets	84,931	48,613
Total current assets	987,797	746,424
Property and equipment, net	75,000	74,944
Prepaid expenses and other assets	52,481	17,816
Goodwill	416,821	416,821
Intangible assets, net	437,354	472,879
Deferred tax assets, net	0	4,386
Total assets	1,969,453	1,733,270
Current liabilities
Accounts payable	15,430	11,816
Accrued expenses	117,930	100,678
Total current liabilities	133,360	112,494
Long-term debt, net	1,502,515	1,499,248
Other long-term liabilities	30,507	37,720
Deferred tax liabilities, net	13,647	0
Total liabilities	1,680,029	1,649,462
Commitments and contingencies (Note 11)
Stockholders’ equity
Preferred stock - $0.001 par value; 20,000 shares authorized; no shares issued and outstanding	0	0
Common stock - $0.001 par value; 300,000 shares authorized; 126,535 and 126,770 shares issued and outstanding as of June 30, 2024 and December 31, 2023, respectively	127	127
Additional paid-in capital	30,747	2,409
Accumulated other comprehensive loss	(2,068)	(9,278)
Retained earnings	260,618	90,550
Total stockholders’ equity	289,424	83,808
Total liabilities and stockholders’ equity	$ 1,969,453	$ 1,733,270

v3.24.2.u1

Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares	Jun. 30, 2024	Dec. 31, 2023
Statement of Financial Position [Abstract]
Preferred stock, par value (usd per share)	$ 0.001	$ 0.001
Preferred stock, shares authorized (in shares)	20,000,000	20,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (usd per share)	$ 0.001	$ 0.001
Common stock, shares authorized (in shares)	300,000,000	300,000,000
Common stock, shares issued (in shares)	126,535,000	126,770,000
Common stock, shares outstanding (in shares)	126,535,000	126,770,000

v3.24.2.u1

Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Revenues
Total revenues	$ 231,353	$ 221,038	$ 427,232	$ 383,181
Operating expenses
Cost of sales	39,607	50,070	67,936	85,240
Amortization of intangibles	17,762	17,835	35,525	35,670
Research and development	21,038	19,727	40,149	37,706
Selling, general and administrative	35,711	38,948	70,845	76,305
Total operating expenses	114,118	126,580	214,455	234,921
Operating income	117,235	94,458	212,777	148,260
Other income (expense)
Investment and other income, net	5,032	3,192	10,025	6,171
Interest expense	(4,524)	(4,494)	(9,031)	(9,037)
Net income before income taxes	117,743	93,156	213,771	145,394
Income tax expense	24,498	18,402	43,703	31,025
Net income	$ 93,245	$ 74,754	$ 170,068	$ 114,369
Earnings per share
Basic (usd per share)	$ 0.73	$ 0.57	$ 1.34	$ 0.86
Diluted (usd per share)	$ 0.72	$ 0.56	$ 1.32	$ 0.84
Weighted average common shares outstanding
Basic (in shares)	127,116	131,730	127,029	133,369
Diluted (in shares)	129,222	133,543	129,097	135,758
Royalties
Revenues
Total revenues	$ 124,918	$ 111,740	$ 245,511	$ 211,380
Product sales, net
Revenues
Total revenues	78,886	73,889	137,469	134,683
Revenues under collaborative agreements
Revenues
Total revenues	$ 27,549	$ 35,409	$ 44,252	$ 37,118

v3.24.2.u1

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Statement of Comprehensive Income [Abstract]
Net income	$ 93,245	$ 74,754	$ 170,068	$ 114,369
Other comprehensive income
Unrealized (loss) gain on marketable securities, net	(150)	(169)	(463)	755
Foreign currency translation adjustment	(15)	1	(7)	23
Unrealized gain (loss) on derivative instruments, net	76	(1,425)	8,691	(1,425)
Realized gain on derivative instruments, net	(493)	(46)	(1,011)	(46)
Comprehensive income	$ 92,663	$ 73,115	$ 177,278	$ 113,676

v3.24.2.u1

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023
Operating activities
Net income	$ 170,068	$ 114,369
Adjustments to reconcile net income to net cash provided by operating activities
Share-based compensation	19,345	17,588
Depreciation and amortization	5,012	5,415
Amortization of intangible assets	35,525	35,670
Amortization of debt discount	3,665	3,652
Accretion of discount on marketable securities, net	(5,399)	(2,342)
Realized gain on marketable securities	(7)	0
Loss on disposal of equipment	1,678	517
Recognition of deferred revenue	0	(2,404)
Lease payments recognized	509	621
Deferred income taxes	15,532	15,381
Changes in operating assets and liabilities
Accounts receivable, net and other contract assets	19,687	(15,307)
Inventories, net	(61,635)	(31,987)
Prepaid expenses and other assets	(38,748)	13,749
Accounts payable and accrued expenses	19,989	(1,116)
Net cash provided by operating activities	185,221	153,806
Investing activities
Purchases of marketable securities	(292,183)	(109,919)
Proceeds from sales and maturities of marketable securities	173,590	114,505
Purchases of property and equipment	(6,127)	(9,754)
Net cash used in investing activities	(124,720)	(5,168)
Financing activities
Repayment of 2024 Convertible Notes	0	(13,483)
Repurchase of common stock	0	(150,083)
Proceeds from issuance of common stock under equity incentive plans, net of taxes paid related to net share settlement	8,993	1,398
Net cash provided by (used in) financing activities	8,993	(162,168)
Net increase (decrease) in cash, cash equivalents and restricted cash	69,494	(13,530)
Cash, cash equivalents and restricted cash at beginning of period	118,370	234,695
Cash, cash equivalents and restricted cash at end of period	187,864	221,165
Supplemental disclosure of non-cash investing and financing activities
Amounts accrued for purchases of property and equipment	498	655
Right-of-use assets obtained in exchange for lease obligation	1,466	1,037
Common stock issued for conversion of 2024 Convertible Notes	$ 0	$ 125

v3.24.2.u1

Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock	Additional Paid-In Capital	Accumulated Other Comprehensive (Loss) Income	Retained Earnings
Equity, beginning balance (in shares) at Dec. 31, 2022		135,154
Equity, beginning balance at Dec. 31, 2022	$ 169,798	$ 135	$ 27,368	$ (922)	$ 143,217
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	17,588		17,588
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net (in shares)		578
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock units, net and shares issued under the ESPP plan	1,398	$ 1	1,397
Issuance of common stock for the conversion of the 2024 Convertible Notes (in shares)		289
Issuance of common stock for the conversion of the 2024 Convertible Notes	(126)		(126)
Repurchase of common stock (in shares)		(4,165)
Repurchase of common stock	(151,301)	$ (4)	(34,159)		(117,138)
Other comprehensive income (loss)	(693)			(693)
Net income	114,369				114,369
Equity, ending balance (in shares) at Jun. 30, 2023		131,856
Equity, ending balance at Jun. 30, 2023	151,033	$ 132	12,068	(1,615)	140,448
Equity, beginning balance (in shares) at Mar. 31, 2023		131,662
Equity, beginning balance at Mar. 31, 2023	65,850	$ 132	0	24	65,694
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	9,622		9,622
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net (in shares)		194
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock units, net and shares issued under the ESPP plan	2,446		2,446
Other comprehensive income (loss)	(1,639)			(1,639)
Net income	74,754				74,754
Equity, ending balance (in shares) at Jun. 30, 2023		131,856
Equity, ending balance at Jun. 30, 2023	151,033	$ 132	12,068	(1,615)	140,448
Equity, beginning balance (in shares) at Dec. 31, 2023		126,770
Equity, beginning balance at Dec. 31, 2023	83,808	$ 127	2,409	(9,278)	90,550
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	19,345		19,345
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net (in shares)		831
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock units, net and shares issued under the ESPP plan	8,993	$ 1	8,992
Repurchase of common stock (in shares)		(1,066)
Repurchase of common stock	0	$ (1)	1
Other comprehensive income (loss)	7,210			7,210
Net income	170,068				170,068
Equity, ending balance (in shares) at Jun. 30, 2024		126,535
Equity, ending balance at Jun. 30, 2024	289,424	$ 127	30,747	(2,068)	260,618
Equity, beginning balance (in shares) at Mar. 31, 2024		127,186
Equity, beginning balance at Mar. 31, 2024	177,808	$ 127	11,794	(1,486)	167,373
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Share-based compensation expense	9,471		9,471
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock and performance stock units, net (in shares)		415
Issuance of common stock pursuant to exercise of stock options and vesting of restricted stock units, net and shares issued under the ESPP plan	9,482	$ 1	9,481
Repurchase of common stock (in shares)		(1,066)
Repurchase of common stock	0	$ (1)	1
Other comprehensive income (loss)	(582)			(582)
Net income	93,245				93,245
Equity, ending balance (in shares) at Jun. 30, 2024		126,535
Equity, ending balance at Jun. 30, 2024	$ 289,424	$ 127	$ 30,747	$ (2,068)	$ 260,618

v3.24.2.u1

Organization and Business	6 Months Ended
	Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Organization and Business	Organization and Business Halozyme Therapeutics, Inc. is a biopharmaceutical company advancing disruptive solutions to improve patient experiences and outcomes for emerging and established therapies. As the innovators of ENHANZE® drug delivery technology (“ENHANZE”) with our proprietary enzyme, rHuPH20, our commercially validated solution is used to facilitate the subcutaneous (“SC”) delivery of injected drugs and fluids with the goal of improving the patient experience with rapid SC delivery and reduced treatment burden. We license our technology to biopharmaceutical companies to collaboratively develop products that combine ENHANZE with our partners’ proprietary compounds. We also develop, manufacture and commercialize, for ourselves or with our partners, drug-device combination products using our advanced auto-injector technologies that are designed to provide commercial or functional advantages such as improved convenience, reliability and tolerability, and enhanced patient comfort and adherence. Our ENHANZE partners’ approved products and product candidates are based on rHuPH20, our patented recombinant human hyaluronidase enzyme. rHuPH20 works by breaking down hyaluronan (“HA”), a naturally occurring carbohydrate that is a major component of the extracellular matrix of the SC space. This temporarily reduces the barrier to bulk fluid flow allowing for improved and more rapid SC delivery of high dose, high volume injectable biologics, such as monoclonal antibodies and other large therapeutic molecules, as well as small molecules and fluids. We refer to the application of rHuPH20 to facilitate the delivery of other drugs or fluids as ENHANZE. We license our ENHANZE technology to form collaborations with biopharmaceutical companies that develop and/or market drugs requiring or benefiting from injection via the SC route of administration. In the development of proprietary intravenous (“IV”) drugs combined with our ENHANZE technology, data has been generated supporting the potential for ENHANZE to reduce patient treatment burden, as a result of shorter duration of SC administration with ENHANZE compared to IV administration. ENHANZE may enable fixed-dose SC dosing compared to weight-based dosing typically required for IV administration, extend the dosing interval for drugs that are already administered subcutaneously and potentially allow for lower rates of infusion-related reactions. ENHANZE may enable more flexible treatment options such as home administration by a healthcare professional or potentially the patient or caregiver. Lastly, certain proprietary drugs co-formulated with ENHANZE have been granted additional exclusivity, extending the patent life of the product beyond the patent expiry of the proprietary IV drug. We currently have ENHANZE collaborations and licensing agreements with F. Hoffmann-La Roche, Ltd. and Hoffmann-La Roche, Inc. (“Roche”), Takeda Pharmaceuticals International AG and Baxalta US Inc. (“Takeda”), Pfizer Inc. (“Pfizer”), Janssen Biotech, Inc. (“Janssen”), AbbVie, Inc. (“AbbVie”), Eli Lilly and Company (“Lilly”), Bristol-Myers Squibb Company (“BMS”), argenx BVBA (“argenx”), ViiV Healthcare (the global specialist HIV Company majority owned by GlaxoSmithKline) (“ViiV”), Chugai Pharmaceutical Co., Ltd. (“Chugai”) and Acumen Pharmaceuticals, Inc. (“Acumen”). In addition to receiving upfront licensing fees from our ENHANZE collaborations, we are entitled to receive event and sales-based milestone payments, revenues from the sale of bulk rHuPH20 and royalties from commercial sales of approved partner products co-formulated with ENHANZE. We currently earn royalties from sales of eight commercial products including sales of one commercial product from each of the Takeda, Janssen and argenx collaborations and five commercial products from the Roche collaboration. We have commercialized auto-injector products with several pharmaceutical companies including Teva Pharmaceutical Industries, Ltd. (“Teva”) and Otter Pharmaceuticals, LLC (“Otter”). We have development programs including auto-injectors with Idorsia Pharmaceuticals Ltd. (“Idorsia”). Our commercial portfolio of proprietary products includes Hylenex®, utilizing rHuPH20, and XYOSTED®, utilizing our auto-injector technology. Except where specifically noted or the context otherwise requires, references to “Halozyme,” “the Company,” “we,” “our,” and “us” in these notes to our condensed consolidated financial statements refer to Halozyme Therapeutics, Inc. and each of its directly and indirectly wholly owned subsidiaries as disclosed in Note 2, Summary of Significant Accounting Policies.

v3.24.2.u1

Summary of Significant Accounting Policies	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Summary of Significant Accounting Policies	Summary of Significant Accounting Policies Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared for purposes of and in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Operating results for interim periods are not necessarily indicative of the operating results for an entire fiscal year. The accompanying condensed consolidated financial statements include the accounts of Halozyme Therapeutics, Inc. and our wholly owned subsidiaries, Halozyme, Inc. and Antares Pharma, Inc., and Antares Pharma, Inc.’s wholly owned Swiss subsidiaries, Antares Pharma IPL AG and Antares Pharma AG. All intercompany accounts and transactions have been eliminated. Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that we believe to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from our estimates. Cash Equivalents and Marketable Securities Cash equivalents consist of highly liquid investments, readily convertible to cash, which mature within 90 days or less from the date of purchase. As of June 30, 2024, our cash and cash equivalents consisted of money market funds, bank certificate of deposits, U.S. treasury securities and demand deposits at commercial banks. Marketable securities are investments with original maturities of more than 90 days from the date of purchase that are specifically identified to fund current operations. Marketable securities are considered available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from the sale of these investments to fund our operations, as necessary. Such available-for-sale investments are carried at fair value with unrealized gains and losses recorded in other comprehensive income and included as a separate component of stockholders’ equity. The cost of marketable securities is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in investment and other income, net in our condensed consolidated statements of income. We use the specific identification method for calculating realized gains and losses on marketable securities sold. None of the realized gains and losses and declines in value that were judged to be as a result of credit loss on marketable securities, if any, are included in investment and other income, net in our condensed consolidated statements of income. Fair Value of Financial Instruments The authoritative guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our financial instruments include cash equivalents, available-for-sale marketable securities, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses and long-term debt. Fair value estimates of these instruments are made at a specific point in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. Available-for-sale marketable securities consist of asset-backed securities, corporate debt securities, U.S. Treasury securities, agency bonds and commercial paper, and are measured at fair value using Level 1 and Level 2 inputs. Level 2 financial instruments are valued using market prices on less active markets and proprietary pricing valuation models with observable inputs, including interest rates, yield curves, maturity dates, issue dates, settlement dates, reported trades, broker-dealer quotes, issue spreads, benchmark securities or other market related data. We obtain the fair value of Level 2 investments from our investment manager, who obtains these fair values from a third-party pricing source. We validate the fair values of Level 2 financial instruments provided by our investment manager by comparing these fair values to a third-party pricing source. Accounts Receivable, net Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of estimated prompt pay discounts, distribution fees and chargebacks. We believe the risk of accounts being uncollectible is minimal; therefore, no significant allowances for doubtful accounts were established as of June 30, 2024 and December 31, 2023. Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are reviewed periodically for potential excess, dated or obsolete status. We evaluate the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand. Leases We have entered into operating leases primarily for real estate and automobiles. These leases have contractual terms which range from three years to twelve years. We determine if an arrangement contains a lease at inception. Right of use (“ROU”) assets and liabilities resulting from operating leases are included in property and equipment, accrued expenses and other long-term liabilities on our condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the discount rate to calculate the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our leases often include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that we will exercise that option. Short-term leases with an initial term of 12 months or less are not recorded on our condensed consolidated balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as automobiles, we account for the lease and non-lease components as a single lease component. Property and Equipment, Net Property and equipment, including ROU assets are recorded at cost, less accumulated depreciation and amortization. Equipment is depreciated using the straight-line method over its estimated useful life ranging from three years to ten years and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter. Impairment of Long-Lived Assets We account for long-lived assets in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable. Comprehensive Income Comprehensive income is defined as the change in equity during the period from transactions and other events and circumstances from non-owner sources. Convertible Notes The 2024 Convertible Notes, the 2027 Convertible Notes and the 2028 Convertible Notes (collectively, the “Convertible Notes”) are accounted for in accordance with authoritative guidance for debt and derivatives. We evaluate all the embedded conversion options contained in the Convertible Notes to determine if there are embedded features that require bifurcation as a derivative as required by U.S. GAAP. Based on our analysis, we account for each of our Convertible Notes as single units of accounting, a liability, because we concluded that the conversion features do not require bifurcation as a derivative under embedded derivative authoritative guidance. Cash Flow Hedges - Currency Risks Beginning in the second quarter of 2023, we entered into a cash flow hedging program to mitigate foreign currency exchange risk associated with forecasted royalty revenue denominated in Swiss francs. Under the program, we can hedge these forecasted royalties up to a maximum of four years into the future. We hedge these cash flow exposures to reduce the risk of our earnings and cash flows being adversely affected by fluctuations in exchange rates. In accordance with the hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and are highly effective in offsetting changes to future cash flows on hedged transactions. Both at inception of the hedge and on an ongoing basis, we assess whether the foreign currency forward contracts are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. If we determine a (i) foreign currency forward contract is not highly effective as a cash flow hedge, (ii) foreign currency forward contract has ceased to be a highly effective hedge or (iii) forecasted transaction is no longer probable of occurring, we would discontinue hedge accounting treatment prospectively. We measure effectiveness based on the change in fair value of the forward currency forward contract and the fair value of the hypothetical foreign currency forward contract with terms that match the critical terms of the risk being hedged. No portion of our foreign currency forward contracts were excluded from the assessment of hedge effectiveness. As of June 30, 2024, all hedges were determined to be highly effective. The assets or liabilities associated with our hedging contracts are recorded at fair market value in prepaid expense and other current assets, accrued expenses, or other long-term liabilities, respectively, in our condensed consolidated balance sheets. Gains and losses related to changes in the fair market value of these hedging contracts are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) within stockholder’s equity in our condensed consolidated balance sheets and reclassified to royalty revenue in our condensed consolidated statements of income in the same period as the recognition of the underlying hedged transaction. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, within the defined hedge period, we reclassify the gains or losses on the related cash flow hedge from AOCI to royalties revenue in our condensed consolidated statements of income. Settlements from the cash flow hedge are included in operating activities on the condensed consolidated statements of cash flows. Since the fair market value of these hedging contracts is derived from current market rates, the hedging contracts are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. As of June 30, 2024, amounts expected to be recognized as a net gain out of AOCI into our condensed consolidated statements of income during the next 12 months are not material. Business Combinations Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill. Costs incurred to complete a business combination, such as legal and other professional fees, are expensed as incurred. If the initial accounting for a business combination is incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in our condensed consolidated statements of income. Goodwill, Intangible Assets and Other Long-Lived Asset Assets acquired, including intangible assets and in-process research and development (“IPR&D”), and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant research and development project (i.e., upon commercialization), the IPR&D asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment. Goodwill and IPR&D are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and IPR&D are considered to be impaired if the carrying value of the reporting unit or IPR&D asset exceeds its respective fair value. We perform our goodwill impairment analysis at the reporting unit level, which aligns with our reporting and operating segment structure and availability of discrete financial information. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting unit is less than the carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and our overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair value of our reporting unit is less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair value of the reporting unit with the carrying value, including goodwill. If the carrying amount of the reporting unit exceeds the fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test. Our identifiable intangible assets with finite useful lives are typically comprised of acquired device technologies and product rights. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives. We perform regular reviews to determine if any event has occurred that may indicate intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset. Revenue Recognition We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements and (iii) from sales of our proprietary and partnered products. We recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the performance obligations. ENHANZE and Device Royalties Under the terms of our ENHANZE collaboration and license agreements, our partners will pay us royalties at an on average mid-single digit percent rate of their sales if products under the collaboration are commercialized. All amounts owed to us are noncancelable after the underlying triggering event occurs, and nonrefundable once paid. Unless terminated earlier in accordance with its terms, collaborations generally continue in effect until the last to expire royalty payment term, as determined on a product by product and country by country basis, with each royalty term starting on the first commercial sale of that product and ending the later of: (i) a specified period or term set forth in the agreement or (ii) expiration of the last to expire of the valid claims of our patents covering rHuPH20 or other specified patents developed under the collaboration which valid claim covers a product developed under the collaboration. In general, when there are no valid claims of a specified patent developed under the collaboration covering the product in a given country, the royalty rate is reduced for those sales in that country upon the expiration of our patents covering rHuPH20. Janssen’s patents covering DARZALEX SC do not impact the timing for this royalty reduction. Partners may terminate the agreement prior to expiration for any reason in its entirety or on a target-by-target basis generally upon 90 days prior written notice to us. Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided; however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid. Sales-based milestones and royalties are recognized in the period the underlying sales or milestones occur. We do not receive final royalty reports from our ENHANZE partners until after we complete our financial statements for a prior quarter. Therefore, we recognize revenue based on estimates of the royalty earned, which are based on internal estimates and available preliminary reports provided by our partners. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments. We also earn royalties in connection with several of our licenses granted under license and development arrangements with our device partners. These royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digits to low double digits and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to us within 45 to 60 days after the end of the period in which the commercial sales are made. We base our estimates of royalties earned on actual sales information from our partners when available or estimated, prescription sales from external sources and estimated net selling price. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments. Revenue under ENHANZE and Device Collaborative Agreements ENHANZE Collaboration and License Agreements Under these agreements, we grant the collaboration partner a worldwide license to develop and commercialize products using our ENHANZE technology to combine our patented rHuPH20 enzyme with their proprietary biologics directed at up to a specified number of targets. Targets are usually licensed on an exclusive, global basis. Targets selected subsequent to inception of the arrangement generally require payment of an additional license fee. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement. We are responsible for supply of bulk rHuPH20 based on the collaboration partner’s purchase orders, and may also be separately engaged to perform research and development services. While these collaboration agreements are similar in that they originate from the same framework, each one is the result of an arms-length negotiation and thus may vary from one to the other. We generally collect an upfront license payment from collaboration partners, and are also entitled to receive event-based payments subject to collaboration partners’ achievement of specified development, regulatory and sales-based milestones. In several agreements, collaboration partners pay us annual fees to maintain their exclusive license rights if they are unable to advance product development to specified stages. We earn separate fees for bulk rHuPH20 supplies and research and development services. Although these agreements are in form identified as collaborative agreements, we concluded for accounting purposes they represent contracts with customers and are not subject to accounting literature on collaborative arrangements. This is because we grant to partners licenses to our intellectual property and provide supply of bulk rHuPH20 and research and development services which are all outputs of our ongoing activities, in exchange for respective consideration. Under these collaborative agreements, our partners lead development of assets, and we do not share in significant financial risks of their development or commercialization activities. Accordingly, we concluded our collaborative agreements are appropriately accounted for pursuant to U.S. GAAP. Under all of our ENHANZE collaborative agreements, we have identified licenses to use functional intellectual property as the only performance obligation. The intellectual property underlying the license is our proprietary ENHANZE technology which represents application of rHuPH20 to facilitate delivery of drugs. Each of the licenses grants the partners rights to use our intellectual property as it exists and is identified on the effective date of the license, because there is no ongoing development of the ENHANZE technology required. Therefore, we recognize revenue from licenses at the point when the license becomes effective and the partner has received access to our intellectual property, usually at the inception of the agreement. When partners can select additional targets to add to the licenses granted, we consider these rights to be options. We evaluate whether such options contain material rights, i.e. have exercise prices that are discounted compared to what we would charge for a similar license to a new partner. The exercise price of these options includes a combination of the target selection fees, event-based milestone payments and royalties. When these amounts in aggregate are not offered at a discount that exceeds discounts available to other customers, we conclude the option does not contain a material right, and we consider grants of additional licensing rights upon option exercises to be separate contracts (target selection contracts). Generally, we provide indemnification and protection of licensed intellectual property for our customers. These provisions are part of assurance that the licenses meet the agreements’ representations and are not obligations to provide goods or services. We also fulfill purchase orders for supply of bulk rHuPH20 and perform research and development services pursuant to project authorization forms for our partners, which represent separate contracts. In addition to our licenses, we price our supply of bulk rHuPH20 and research and development services at our regular selling prices, called standalone selling prices (“SSP”). Therefore, our partners do not have material rights to order these items at prices not reflective of SSP. Refer to the discussion below regarding recognition of revenue for these separate contracts. Transaction price for a contract represents the amount to which we are entitled in exchange for providing goods and services to the customer. Transaction price does not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of revenue when the uncertainty is resolved. Apart from the upfront license payment (or target selection fees in the target selection contracts), all other fees we may earn under our collaborative agreements are subject to significant uncertainties of product development. Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are actually achieved. This generally relates to milestones such as obtaining marketing authorization approvals. With respect to other development milestones, e.g., dosing of a first patient in a clinical trial, achievement could be considered probable prior to its actual occurrence, based on the progress towards commencement of the trial. In order to evaluate progress towards commencement of a trial, we assess the status of activities leading up to our partner’s initiation of a trial such as feedback received from the applicable regulatory authorities, completion of Investigational New Drug (“IND”) or equivalent filings, readiness and availability of drug, readiness of study sites and our partner’s commitment of resources to the program. We do not include any amounts subject to uncertainties in the transaction price until it is probable that the amount will not result in a significant reversal of revenue in the future. At the end of each reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. When target exchange rights are held by partners, and the amounts attributed to these rights are not refundable, they are included in the transaction price. However, they are recorded as deferred revenues because we have a potential performance obligation to provide a new target upon an exchange right being exercised. These amounts are recognized in revenue when the right of exchange expires or is exercised. Because our agreements have one type of performance obligation (licenses) which are typically all transferred at the same time at agreement inception, allocation of transaction price often is not required. However, allocation is required when licenses for some of the individual targets are subject to rights of exchange, because revenue associated with these targets cannot be recognized. When allocation is needed, we perform an allocation of the upfront amount based on relative SSP of licenses for individual targets. We determine license SSP using an income-based valuation approach utilizing risk-adjusted discounted cash flow projections of the estimated return a licensor would receive. When amounts subject to uncertainties, such as milestones and royalties, are included in the transaction price, we attribute them to the specific individual target licenses which generate such milestone or royalty amounts. We also estimate SSP of bulk rHuPH20 and research and development services, to determine that our partners do not have material rights to order them at discounted prices. For supplies of bulk rHuPH20, because we effectively act as a contract manufacturer to our partners, we estimate and charge SSP based on the typical contract manufacturer margins consistent with all of our partners. We determine SSP of research and development services based on a fully-burdened labor rate. Our rates are comparable to those we observe in other collaborative agreements. We also have a history of charging similar rates to all of our partners. Upfront amounts allocated to licenses to individual targets are recognized as revenue when the license is transferred to the partner, as discussed above, if the license is not subject to exchange rights, or when the exchange right expires or is exercised. Development milestones and other fees are recognized in revenue when they are included in the transaction price, because by that time, we have already transferred the related license to the partner. In contracts to provide research and development services, such services represent the only performance obligation. The fees are charged based on hours worked by our employees and the fixed contractual rate per hour, plus third-party pass-through costs, on a monthly basis. We recognize revenues as the related services are performed based on the amounts billed, as the partner consumes the benefit of research and development work simultaneously as we perform these services, and the amounts billed reflect the value of these services to the customer. Device License, Development and Supply Arrangements We have several license, development and supply arrangements with pharmaceutical partners, under which we grant a license to our device technology and provide research and development services that often involve multiple performance obligations and highly-customized deliverables. For such arrangements, we identify each of the promised goods and services within the contract and the distinct performance obligations at inception of the contract and allocate consideration to each performance obligation based on relative SSP, which is generally determined based on the expected cost plus mark-up. If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, we recognize revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control of the product is transferred to the customer. Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment. Our payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. We record a contract liability for cash received in advance of performance, which is presented within deferred revenue and deferred revenue, long-term in our condensed consolidated balance sheets and recognized as revenue in our condensed consolidated statements of income when the associated performance obligations have been satisfied. License fees and milestones received in exchange for the grant of a license to our functional intellectual property, such as patented technology and know-how in connection with a partnered development arrangement, are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is generally not distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal of revenue will not occur when the associated uncertainty is resolved. Refer to Note 4, Revenue, for further discussion on our collaborative arrangements. Product Sales, Net Proprietary Product Sales Our commercial portfolio of proprietary products includes XYOSTED and Hylenex recombinant which we sell primarily to wholesale pharmaceutical distributors and specialty pharmacies, who sell the products to hospitals, retail chain drug stores and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual packages of products represents performance obligations under each purchase order. We use contract manufacturers to produce our proprietary products and third-party logistics (“3PL”) vendors to process and fulfill orders. We concluded we are the principal in the sales to wholesalers because we control access to services rendered by both vendors and direct their activities. We have no significant obligations to wholesalers to generate pull-through sales. Revenue is recognized when control has transferred to the customer, which is typically upon delivery, at the net selling price, which reflects the variable consideration for which reserves and sales allowances are established for estimated returns, wholesale distribution fees, prompt payment discounts, government rebates and chargebacks, plan rebate arrangements and patient discount and support programs. We recognize revenue from product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay us. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, we do not believe they have a significant incentive to return the product to us. The determination of certain reserves and sales allowances requires us to make a number of judgements and estimates to reflect our best estimate of the transaction price and the amount of consideration to which we believe we would be ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and estimated future percentage of rebates incurred on sales, historical and future insurance plan billings, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. The estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, rebates and customer co-pay support programs are included in accrued expenses and accounts receivable, net in our condensed consolidated balance sheets upon recognition of revenue from product sales. We monitor actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts differ from our estimates, we make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when wholesalers sell our products at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”), Pharmacy Benefit Managers (“PBMs”) and government programs. We also pay quarterly distribution fees to certain wholesalers for inventory reporting and chargeback processing, and to PBMs and GPOs as administrative fees for services and for access to their members. We concluded the benefits received in exchange for these fees are not distinct from our sales of our products, and accordingly we apply these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of our products and our lengthy return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product. We estimate the transaction price when we receive each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. We have compiled historical experience and data to estimate future returns and chargebacks of our products and the impact of the other discounts and fees we pay. When estimating these adjustments to the transaction price, we reduce it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. Each purchase order contains only one type of product, and is usually shipped to the wholesaler in a single shipment. Therefore, allocation of the transaction price to individual packages is not required. In connection with the orders placed by wholesalers, we incur costs such as commissions to our sales representatives. However, as revenue from product sales is recognized upon delivery to the wholesaler, which occurs shortly after we receive a purchase order, we do not capitalize these commissions and other costs, based on application of the practical expedient allowed within the applicable guidance. Partnered Product Sales Bulk rHuPH20 We sell bulk rHuPH20 to partners for use in research and development and, subsequent to receiving marketing approval, we sell it for use in collaboration commercial products. Sales are made pursuant to purchase orders subject to the terms of the collaborative agreement or a supply agreement, and delivery of units of bulk rHuPH20 represent performance obligations under each purchase order. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce bulk rHuPH20 and have concluded we are the principal in the sales to partners. The transaction price for each purchase order of bulk rHuPH20 is fixed based on the cost of production plus a contractual markup, and is not subject to adjustments. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product. We recognize revenue from the sale of bulk rHuPH20 as product sales and related cost of sales upon transfer of title to our partners. At that time, the partners take control of the product, bear the risk of loss of ownership, and have an enforceable obligation to pay us. Devices We are party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which we produce and are the exclusive supplier of certain products, devices and/or components. Revenue is recognized when or as control of the goods transfers to the customer as discussed below. We are the exclusive supplier of OTREXUP® to Otter. Because this product is custom manufactured with no alternative use and we have a contractual right to payment for performance completed to date, control is continuously transferred to the customer as the product is produced pursuant to firm purchase orders. Revenue is recognized over time using the output method based on the contractual selling price and number of units produced. The amount of revenue recognized in excess of the amount shipped/billed to the customer, if any, is recorded as contract assets in our condensed consolidated balance sheets due to the short-term nature in which the amount is ultimately expected to be billed and collected from the customer. Other device partnered product sales are recognized at the point in time in which control is transferred to the customer, which is typically upon shipment. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no right of return. Revenue is recognized at the transaction price, which includes the contractual per unit selling price and estimated variable consideration, such as volume-based pricing arrangements, if any. We recognize revenue, including the estimated variable consideration we expect to receive for contract margin on future commercial sales, upon shipment of the goods to our partner. The estimated variable consideration is recognized at an amount we believe is not subject to significant reversal of revenue based on historical experience and is adjusted at each reporting period if the most likely amount of expected consideration changes or becomes fixed. Cost of Sales Cost of sales consists primarily of raw materials, third-party manufacturing costs, fill and finish costs, freight costs, internal costs and manufacturing overhead associated with the production of proprietary and partnered products. Cost of sales also consists of the write-down of excess, dated and obsolete inventories and the write-off of inventories that do not meet certain product specifications, if any. Research and Development Expenses Research and development expenses include salaries and benefits, allocation of facilities and other overhead expenses, research related manufacturing services, contract services, and other outside expenses related to manufacturing, preclinical and regulatory activities and our partner development platforms. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to our research and development efforts and have no alternative future uses. We are obligated to make upfront payments upon execution of certain research and development agreements. Advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as expense as the related goods are delivered or the related services are performed or such time when we do not expect the goods to be delivered or services to be performed. Share-Based Compensation We record compensation expense associated with stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and shares issued under our employee stock purchase plan (“ESPP”) in accordance with the authoritative guidance for share-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation expense for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of share-based compensation expense as they occur. Income Taxes We provide for income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases at each reporting period. We measure deferred tax assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. Significant judgment is required by management to determine our provision for income taxes, our deferred tax assets and liabilities, and any associated valuation allowances recorded against our net deferred tax assets, which are based on complex and evolving tax regulations. Deferred tax assets (“DTA”) and other tax benefits are recorded when they are more likely than not to be realized. On a quarterly basis, we assess the need for valuation allowance on our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all of our DTAs will be realized. We recorded a provision for income taxes of $24.5 million and $43.7 million using an effective tax rate of 20.5% and 19.1% for the three and six months ended June 30, 2024. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily due to state income taxes, research and development credit generations, tax benefits on the Foreign Derived Intangible Income Deduction (“FDII”) (net of reserves), tax detriments on 162(m) and other share-based compensation. Segment Information We operate our business in one operating segment, which includes all activities related to the research, development and commercialization of our proprietary enzymes and devices. This segment also includes revenues and expenses related to (i) research and development and manufacturing activities conducted under our collaborative agreements with third parties, and (ii) product sales of proprietary and partnered products. The chief operating decision-maker (“CODM”), our Chief Executive Officer (“CEO”), reviews the operating results on an aggregate basis and manages the operations as a single operating segment. Adoption and Pending Adoption of Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting standards, those adopted in the current period and those not yet adopted: Standard Description Effective Date Adoption Method Effect on the Financial Statements or Other Significant Matters In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new standard is intended to improve annual and interim reportable segment disclosure requirements regardless of number of reporting units, primarily through enhanced disclosures of significant expenses. The amendment requires public entities to disclose significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit and loss. Annual periods beginning after December 15, 2023 (our 2024 Form 10-K), and interim periods within fiscal years beginning after December 15, 2024 (our Q1 2025 Form 10-Q) - Early adoption is permitted, including adoption in an interim period Retrospective We are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. Annual periods beginning after December 15, 2024 (our 2025 Form 10-K) - Early adoption is permitted Prospective or Retrospective We are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures.

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Fair Value Measurement	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Fair Value Measurement	Fair Value Measurement Available-for-sale marketable securities consisted of the following (in thousands): June 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Asset-backed securities $ 928  $ —  $ (2) $ 926  Corporate debt securities 52,579  —  (126) 52,453  U.S. treasury securities 282,769  1  (170) 282,600  Agency bonds 5,199  —  (12) 5,187  Total marketable securities, available-for-sale $ 341,475  $ 1  $ (310) $ 341,166  December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Asset-backed securities $ 3,512  $ —  $ (8) $ 3,504  Corporate debt securities 6,022  1  (10) 6,013  U.S. treasury securities 175,996  200  (12) 176,184  Agency bonds 16,119  —  (16) 16,103  Commercial paper 15,826  —  —  15,826  Total marketable securities, available-for-sale $ 217,475  $ 201  $ (46) $ 217,630  As of June 30, 2024, 41 available-for-sale marketable securities with a fair market value of $315.5 million were in a gross unrealized loss position of $0.3 million. Based on our review of these marketable securities, we believe none of the unrealized loss is as a result of a credit loss as of June 30, 2024 because we do not intend to sell these securities and it is not more-likely-than-not that we will be required to sell these securities before the recovery of their amortized cost basis. The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands): June 30, 2024 December 31, 2023 Due within one year $ 304,661  $ 197,633  Due after one year but within five years 36,505  19,997  Total estimated fair value of contractual maturities, available-for-sale $ 341,166  $ 217,630  The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): June 30, 2024 December 31, 2023 Level 1 Level 2 Total Estimated Fair Value Level 1 Level 2 Total Estimated Fair Value Assets Cash equivalents Money market funds $ 56,965  $ —  $ 56,965  $ 22,142  $ —  $ 22,142  U.S. treasury securities 20,000  —  20,000  2,000  —  2,000  Available-for-sale marketable    securities Asset-backed securities —  926  926  —  3,504  3,504  Corporate debt securities —  52,453  52,453  —  6,013  6,013  U.S. treasury securities 282,600  —  282,600  176,184  —  176,184  Agency bonds 5,187  —  5,187  16,103  —  16,103  Commercial paper —  —  —  —  15,826  15,826  Derivative instruments Currency hedging contracts (1) —  1,389  1,389  —  —  —  Total assets $ 364,752  $ 54,768  $ 419,520  $ 216,429  $ 25,343  $ 241,772  Liabilities Derivative instruments Currency hedging contracts (1) $ —  $ 688  $ 688  $ —  $ 9,480  $ 9,480  (1) Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of June 30, 2024, the derivative assets and liabilities recorded within prepaid expenses and other current assets, prepaid expense and other assets and other long-term liabilities in our condensed consolidated balance sheets were $1.2 million, $0.2 million and $0.7 million, respectively. We had no available for sale securities that were classified within Level 3 as of June 30, 2024 and December 31, 2023.

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Revenue	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Revenue	Revenue Our disaggregated revenues were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Royalties $ 124,918  $ 111,740  $ 245,511  $ 211,380  Product sales, net Proprietary product sales 44,139  32,293  79,394  60,254  Bulk rHuPH20 sales 24,634  27,133  35,144  49,202  Device partnered product sales 10,113  14,463  22,931  25,227  Total product sales, net 78,886  73,889  137,469  134,683  Revenues under collaborative agreements Event-based development and regulatory milestones and other fees 25,500  33,000  39,500  33,000  Device licensing and development revenue 2,049  2,409  4,752  4,118  Total revenues under collaborative agreements 27,549  35,409  44,252  37,118  Total revenues $ 231,353  $ 221,038  $ 427,232  $ 383,181  During the three months ended June 30, 2024, we recognized revenue related to licenses granted to partners in prior periods in the amount of $150.4 million. This amount represents royalties earned in the current period in addition to $25.5 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $0.5 million during the three months ended June 30, 2024 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2023. During the six months ended June 30, 2024, we recognized revenue related to licenses granted to partners in prior periods in the amount of $285.0 million. This amount represents royalties earned in the current period in addition to $39.5 million of variable consideration in the contracts where uncertainties were resolved and the development milestones are expected to be achieved or were achieved. We also recognized revenue of $0.6 million during the six months ended June 30, 2024 that had been included in accrued expense and other long-term liabilities in our condensed consolidated balance sheets as of December 31, 2023. Accounts receivable, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands): June 30, 2024 December 31, 2023 Accounts receivable, net $ 210,416  $ 233,254  Other contract assets 4,108  956  Deferred revenues 4,856  4,048  As of June 30, 2024, the amounts included in the transaction price of our contracts with customers, including collaboration partners, and allocated to goods and services not yet provided were $89.2 million, of which $84.3 million relates to unfulfilled product purchase orders and $4.9 million has been collected and is reported as accrued expense and other long-term liabilities in our condensed consolidated balance sheets. The unfulfilled product purchase orders are estimated to be delivered by the end of 2025. Of the total deferred revenues of $4.9 million, $1.3 million is expected to be used by our customers within the next 12 months. We recognized contract assets of $4.1 million as of June 30, 2024, which related to development milestones deemed probable of receipt for intellectual property licenses granted to partners in prior periods and for goods or services when control has transferred to the customer, and corresponding revenue is recognized on an over time basis but is not yet billable to the customer in accordance with the terms of the contract.

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Certain Balance Sheet Items	6 Months Ended
	Jun. 30, 2024
Balance Sheet Related Disclosures [Abstract]
Certain Balance Sheet Items	Certain Balance Sheet Items Accounts receivable, net and contract assets consisted of the following (in thousands): June 30, 2024 December 31, 2023 Accounts receivable from product sales to partners $ 29,307  $ 58,588  Accounts receivable from revenues under collaborative agreements 9,803  16,183  Accounts receivable from royalty payments 128,015  118,170  Accounts receivable from other product sales 49,909  47,060  Contract assets 4,108  956  Total accounts receivable and contract assets 221,142  240,957  Allowance for distribution fees and discounts (6,618) (6,747) Total accounts receivable, net and contract assets $ 214,524  $ 234,210  Inventories, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 27,223  $ 23,646  Work-in-process 36,690  34,025  Finished goods 126,643  69,930  Total inventories, net 190,556  127,601  Less long-term portion (1) 31,244  —  Total inventories, net current $ 159,312  $ 127,601  (1) Long-term portion of inventories, net represents inventory expected to remain on hand beyond one year and therefore is included in prepaid expenses and other assets in the condensed consolidated balance sheets. Prepaid expenses and other assets consisted of the following (in thousands): June 30, 2024 December 31, 2023 Prepaid manufacturing expenses $ 30,928  $ 36,850  Other prepaid expenses 53,936  12,902  Other assets (1) 21,304  16,677  Total prepaid expenses and other assets 106,168  66,429  Less long-term portion (1) (21,237) (17,816) Total prepaid expenses and other assets, current $ 84,931  $ 48,613  (1) Excludes long-term inventories, net discussed in the table above. Prepaid manufacturing expenses include raw materials, slot reservation fees and other amounts paid to contract manufacturing organizations. Such amounts are reclassified to work-in-process inventory as materials are used or the contract manufacturing organization services are complete. Property and equipment, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Research equipment $ 8,796  $ 8,588  Manufacturing equipment 37,427  32,472  Computer and office equipment 9,183  9,722  Leasehold improvements 7,042  6,987  Subtotal 62,448  57,769  Accumulated depreciation and amortization (22,239) (19,661) Subtotal 40,209  38,108  Right of use of assets 34,791  36,836  Total property and equipment, net $ 75,000  $ 74,944  Depreciation and amortization expense was approximately $2.6 million and $2.8 million, inclusive of ROU asset amortization of $1.4 million and $1.4 million for the three months ended June 30, 2024 and 2023, respectively. Depreciation and amortization expense was approximately $5.0 million and $5.4 million, inclusive of ROU asset amortization of $2.9 million and $2.8 million for the six months ended June 30, 2024 and 2023, respectively. Accrued expenses consisted of the following (in thousands): June 30, 2024 December 31, 2023 Accrued compensation and payroll taxes $ 12,561  $ 17,361  Accrued outsourced manufacturing expenses 13,523  12,361  Income taxes payable 29,265  963  Product returns and sales allowance 42,653  41,932  Other accrued expenses 19,771  33,584  Lease liability 30,664  32,197  Total accrued expenses 148,437  138,398  Less long-term portion (30,507) (37,720) Total accrued expenses, current $ 117,930  $ 100,678  Expense associated with the accretion of the lease liabilities was approximately $0.6 million and $0.6 million for the three months ended June 30, 2024 and 2023, respectively and $1.2 million and $1.3 million for the six months ended June 30, 2024 and 2023, respectively. Total lease expense for the three months ended June 30, 2024 and 2023 was $2.0 million and $2.0 million, respectively, and $4.0 million and $4.1 million for the six months ended June 30, 2024 and 2023, respectively. Cash paid for amounts related to leases for the three months ended June 30, 2024 and 2023 was $1.7 million and $1.7 million, respectively, and $3.5 million and $3.4 million for the six months ended June 30, 2024 and 2023, respectively.

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Goodwill and Intangible Assets	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Goodwill and Intangible Assets	Goodwill and Intangible Assets Goodwill A summary of the activity impacting goodwill is presented below (in thousands): Balance as of December 31, 2023 $ 416,821  Adjustment —  Balance as of June 30, 2024 $ 416,821  Intangible Assets Our acquired intangible assets are amortized using the straight-line method over their estimated useful lives of seven to ten years. The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of June 30, 2024 (in thousands). Weighted Average Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Auto Injector technology platform 7 $ 402,000  $ 120,878  $ 281,122  XYOSTED proprietary product 10 136,200  28,668  107,532  Total finite-lived intangibles, net $ 538,200  $ 149,546  $ 388,654  ATRS-1902 (IPR&D) Indefinite 48,700  Total intangibles, net $ 437,354  Estimated future annual amortization of finite-lived intangible assets is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors. Year Amortization Expense Remainder of 2024 $ 35,524  2025 71,049  2026 71,049  2027 71,049  2028 71,049  Thereafter 68,934  Total $ 388,654

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Long-Term Debt, Net	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Long-Term Debt, Net	Long-Term Debt, Net 1.00% Convertible Notes due 2028 In August 2022, we completed the sale of $720.0 million in aggregate principal amount of 1.00% Convertible Senior Notes due 2028 (the “2028 Convertible Notes”). The net proceeds in connection with the issuance of the 2028 Convertible Notes, after deducting the initial purchasers’ fee of $18.0 million, was approximately $702.0 million. We also incurred additional debt issuance costs totaling $1.0 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount. The 2028 Convertible Notes pay interest semi-annually in arrears on February 15th and August 15th of each year at an annual rate of 1.00%. The 2028 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2028 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness, and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2028 Convertible Notes have a maturity date of August 15, 2028. Holders may convert their 2028 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on December 31, 2022, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the offering memorandum for the 2028 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, February 15, 2028 until the close of business on the second scheduled trading day immediately before the maturity date. As of June 30, 2024, the 2028 Convertible Notes were not convertible. Upon conversion, we will pay cash for the settlement of principal, and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2028 Convertible Notes is 17.8517 shares of common stock per $1,000 in principal amount of 2028 Convertible Notes, equivalent to a conversion price of approximately $56.02 per share of our common stock. The conversion rate is subject to adjustment in some events but will not be adjusted for any accrued or unpaid interest. As of June 30, 2024, we were in compliance with all covenants and there was no material adverse change in our business, operations or financial condition. Capped Call Transactions In connection with the offering of the 2028 Convertible Notes, we entered into capped call transactions with certain counterparties (the “Capped Call Transactions”). The Capped Call Transactions are expected generally to reduce potential dilution to holders of our common stock upon conversion of the 2028 Convertible Notes or at our election (subject to certain conditions) offset any cash payments we are required to make in excess of the principal amount of such converted 2028 Convertible Notes. The cap price of the Capped Call Transactions is initially $75.4075 per share of common stock, representing a premium of 75% above the last reported sale price of $43.09 per share of common stock on August 15, 2022, and is subject to certain adjustments under the terms of the Capped Call Transactions. As of June 30, 2024, no capped calls had been exercised. Pursuant to their terms, the capped calls qualify for classification within stockholders’ equity in our condensed consolidated balance sheets, and their fair value is not remeasured and adjusted as long as they continue to qualify for stockholders’ equity classification. We paid approximately $69.1 million for the Capped Calls, including applicable transaction costs, which was recorded as a reduction to additional paid-in capital in our condensed consolidated balance sheets. The Capped Call Transactions are separate transactions entered into by us with the capped call Counterparties, are not part of the terms of the Convertible Notes, and do not affect any holder’s rights under the Convertible Notes. Holders of the Convertible Notes do not have any rights with respect to the Capped Call Transactions. 0.25% Convertible Notes due 2027 In March 2021, we completed the sale of $805.0 million in aggregate principal amount of 0.25% Convertible Senior Notes due 2027 (the “2027 Convertible Notes”). The net proceeds in connection with the issuance of the 2027 Convertible Notes, after deducting the initial purchasers’ fee of $20.1 million, was approximately $784.9 million. We also incurred additional debt issuance costs totaling $0.4 million. Debt issuance costs and the initial purchasers’ fee are presented as a debt discount. The 2027 Convertible Notes pay interest semi-annually in arrears on March 1st and September 1st of each year at an annual rate of 0.25%. The 2027 Convertible Notes are general unsecured obligations and rank senior in right of payment to all indebtedness that is expressly subordinated in right of payment to the 2027 Convertible Notes, rank equally in right of payment with all existing and future liabilities that are not so subordinated, are effectively junior to any secured indebtedness to the extent of the value of the assets securing such indebtedness and are structurally subordinated to all indebtedness and other liabilities (including trade payables) of our current or future subsidiaries. The 2027 Convertible Notes have a maturity date of March 1, 2027. Holders may convert their 2027 Convertible Notes at their option only in the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending on June 30, 2021, if the last reported sale price per share of common stock exceeds 130% of the conversion price for each of at least 20 trading days during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter; (2) during the five consecutive business days immediately after any five consecutive trading day period (such five consecutive trading day period, the “measurement period”) in which the trading price per $1,000 principal amount of notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price per share of our common stock on such trading day and the conversion rate on such trading day; (3) upon the occurrence of certain corporate events or distributions on our common stock, as described in the offering memorandum for the 2027 Convertible Notes; (4) if we call such notes for redemption; and (5) at any time from, and including, September 1, 2026 until the close of business on the scheduled trading day immediately before the maturity date. As of June 30, 2024, the 2027 Convertible Notes were not convertible. Upon conversion, we will pay cash for the settlement of principal and for the premium, if applicable, we will pay cash, deliver shares of common stock or a combination of cash and shares of common stock, at our election. The initial conversion rate for the 2027 Convertible Notes is 12.9576 shares of common stock per $1,000 in principal amount of 2027 Convertible Notes, equivalent to a conversion price of approximately $77.17 per share of our common stock. The conversion rate is subject to adjustment. As of June 30, 2024, we were in compliance with all covenants and there was no material adverse change in our business, operations or financial condition. 1.25% Convertible Notes due 2024 In November 2019, we completed the sale of $460.0 million in aggregate principal amount of 1.25% Convertible Senior Notes due 2024 (the “2024 Convertible Notes”). The net proceeds in connection with the issuance of the 2024 Convertible Notes, after deducting the initial purchasers’ fee of $12.7 million, was approximately $447.3 million. We also incurred debt issuance cost totaling $0.3 million. Debt issuance costs and the initial purchasers’ fee were presented as a debt discount. In January 2021, we notified the note holders of our irrevocable election to settle the principal of the 2024 Convertible Notes in cash and for the premium, to deliver shares of common stock. The conversion rate for the 2024 Convertible Notes was 41.9208 shares of common stock per $1,000 in principal amount of 2024 Convertible Notes, equivalent to a conversion price of approximately $23.85 per share of our common stock. The conversion rate was subject to adjustment. In January 2023, we issued a notice for the redemption of 2024 Convertible Notes. Holders of the notes could convert their notes at any time prior to the close of the business day prior to the redemption date. In March 2023, holders of the notes elected to convert the 2024 Convertible Notes in full. In connection with the conversion, we paid approximately $13.5 million in cash which included principal and accrued interest, and issued 288,886 shares of our common stock representing the intrinsic value based on the contractual conversion rate. Net Carrying Amounts of our Convertible Notes The carrying amount and fair value of our Convertible Notes were as follows (in thousands). June 30, 2024 December 31, 2023 Principal amount 2027 Convertible Notes $ 805,000  $ 805,000  2028 Convertible Notes 720,000  720,000  Total principal amount $ 1,525,000  $ 1,525,000  Unamortized debt discount 2027 Convertible Notes $ (9,237) $ (10,950) 2028 Convertible Notes (13,248) (14,802) Total unamortized debt discount $ (22,485) $ (25,752) Carrying amount 2027 Convertible Notes $ 795,763  $ 794,050  2028 Convertible Notes 706,752  705,198  Total carrying amount $ 1,502,515  $ 1,499,248  Fair value based on trading levels (Level 2) 2027 Convertible Notes $ 768,920  $ 695,826  2028 Convertible Notes 801,115  670,522  Total fair value of outstanding notes $ 1,570,035  $ 1,366,348  Remaining amortization per period of debt discount (in years) 2027 Convertible Notes 2.7 3.2 2028 Convertible Notes 4.1 4.6 The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Coupon interest 2024 Convertible Notes $ — $ — $ —  $ 36  2027 Convertible Notes 503 503 1,006  1,006  2028 Convertible Notes 1,800 1,800 3,600  3,600  Total coupon interest $ 2,303 $ 2,303 $ 4,606  $ 4,642  Amortization of debt discount 2024 Convertible Notes $ — $ — $ —  $ 24  2027 Convertible Notes 857 852 1,713  1,702  2028 Convertible Notes 778 767 1,553  1,531  Total amortization of debt discount $ 1,635 $ 1,619 $ 3,266  $ 3,257  Interest expense 2024 Convertible Notes $ — $ — $ —  $ 60  2027 Convertible Notes 1,360 1,355 2,719  2,708  2028 Convertible Notes 2,578 2,567 5,153  5,131  Total interest expense $ 3,938 $ 3,922 $ 7,872  $ 7,899  Effective interest rates 2027 Convertible Notes 0.7  % 0.7  % 0.7  % 0.7  % 2028 Convertible Notes 1.5  % 1.5  % 1.5  % 1.5  % Revolving Credit and Term Loan Facilities In May 2022, we entered into a credit agreement, which was subsequently amended in August 2022 (the “Amendment”), with Bank of America, N.A., as Administrative Agent, Swing Line Lender and an L/C Issuer, and the other lenders and L/C Issuers party thereto (the “2022 Credit Agreement), evidencing a credit facility (the “2022 Facility”) that provides for (i) a $575 million revolving credit facility (the “Revolving Credit Facility”) and (ii) a $250 million term loan facility (the “Term Facility”). Concurrently, with the entry into the Amendment, we repaid the entire outstanding Term Loan Facility and repaid all outstanding loans under the Revolving Credit Facility under the 2022 Credit Agreement. The 2022 Facility will mature on November 30, 2026 unless either the Revolving Credit Facility or the Term Facility is extended prior to such date in accordance with the 2022 Credit Agreement. The Term Facility requires quarterly scheduled repayments of the term loans in each of the first, second, third and fourth years following the closing in annual amounts equal to 2.50%, 5.00%, 7.50% and 10.00% of the initial principal amount of the term loans, respectively. The term loans are also subject to mandatory prepayments from the proceeds of certain asset sales, subject to our right to reinvest the proceeds thereof. Borrowings under the 2022 Facility bear interest, at our option, at a rate equal to an applicable margin plus: (a) the applicable Term Secured Overnight Financing Rate (“SOFR”) (which includes a SOFR adjustment of 0.10%), or (b) a base rate determined by reference to the highest of (1) the federal funds effective rate plus 0.50%, (2) the Bank of America prime rate, (3) the Term SOFR rate for an interest period of one month plus 1.10%, and (4) 1.00%. The margin for the 2022 Facility ranges, based on our consolidated total net leverage ratio, from 0.25% to 1.25% in the case of base rate loans and from 1.25% to 2.25% in the case of Term SOFR rate loans. In addition to paying interest on the outstanding principal under the Facility, we will pay (i) a commitment fee in respect of the unutilized commitments thereunder and (ii) customary letter of credit fees and agency fees. The commitment fees range from 0.15% to 0.35% per annum based on our consolidated net leverage ratio. As of June 30, 2024, the Revolving Credit Facility was undrawn. We incurred a total of $3.6 million in third-party costs related to the 2022 Credit Agreement which are recorded as debt issuance cost within prepaid expenses and other assets in our condensed consolidated balance sheets. As of June 30, 2024, the unamortized debt issuance cost related to the revolving credit facility was $1.9 million.

v3.24.2.u1

Share-based Compensation	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Share-based Compensation	Share-based Compensation The following table summarized share-based compensation expense included in our condensed consolidated statements of income related to share-based awards (in thousands): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Research and development $ 2,568  $ 3,670  $ 5,913  $ 6,771  Selling, general and administrative 6,903  5,952  13,432  10,817  Total share-based compensation expense $ 9,471  $ 9,622  $ 19,345  $ 17,588  Share-based compensation expense by type of share-based award was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Stock options $ 3,894  $ 4,190  $ 8,193  $ 7,645  RSUs, PSUs and ESPP 5,577  5,432  11,152  9,943  Total share-based compensation expense $ 9,471  $ 9,622  $ 19,345  $ 17,588  We granted stock options to purchase approximately 0.1 million and 0.4 million shares of common stock during the three months ended June 30, 2024 and 2023, respectively and 0.6 million and 1.6 million during the six months ended June 30, 2024 and 2023, respectively. The exercise price of stock options granted is equal to the closing price of the common stock on the date of grant. The fair value of each option award is estimated on the date of grant using the Black-Scholes-Merton option pricing model (“Black-Scholes Model”). Expected volatility is based on historical volatility of our common stock. The expected term of options granted is based on analyses of historical employee termination rates and option exercises. The risk-free interest rate is based on the U.S. Treasury yield for a period consistent with the expected term of the option in effect at the time of the grant. The dividend yield assumption is based on the expectation of no future dividend payments. The assumptions used in the Black-Scholes Model were as follows: Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Expected volatility 40.01 - 40.07% 40.26 - 40.72% 40.01 - 40.08% 39.68 - 40.72% Average expected term (in years) 5.4 5.0 5.0 4.8 Risk-free interest rate 4.64 - 4.70% 3.37 - 3.70% 3.80 - 4.70% 3.37 - 4.27% Expected dividend yield —  —  —  —  In February 2021, our Board of Directors approved our 2021 ESPP and our stockholders approved the plan in May 2021. The ESPP enables eligible employees to purchase shares of our common stock at the end of each offering period at a price equal to 85% of the fair market value of the shares on the first business day or the last business day of the offering period, whichever is lower. Share purchases are funded through payroll deduction of at least 1% and up to 15% of an employee’s compensation for each payroll period, and no employee may purchase shares under the ESPP that exceeds $25,000 worth of our common stock for a calendar year. As of June 30, 2024, 2,579,790 shares were available for future purchase. The offering period is generally for a six-month period and the first offering period commenced on June 16, 2021. Offering periods shall commence on or about the sixteenth day of June and December of each year and end on or about the fifteenth day of the next December and June, respectively, occurring thereafter. During the six months ended June 30, 2024, 24,432 shares were issued pursuant to the ESPP. Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized was as follows (in thousands, unless otherwise noted): June 30, 2024   Unrecognized Expense Remaining Weighted-Average Recognition Period (in years) Stock options $ 35,381  2.56 RSUs 50,035  2.92 PSUs 9,577  2.05 ESPP 253  0.40

v3.24.2.u1

Stockholders' Equity	6 Months Ended
	Jun. 30, 2024
Equity [Abstract]
Stockholders' Equity	Stockholders’ Equity During the six months ended June 30, 2024 and 2023, we issued an aggregate of 475,828 and 240,223 shares of common stock, respectively, in connection with the exercises of stock options at a weighted average exercise price of $23.90 and $17.66 per share, respectively, for net proceeds of approximately $11.4 million and $4.2 million, respectively. For the six months ended June 30, 2024 and 2023, we issued 331,693 and 318,181 shares of common stock, respectively, upon vesting of certain RSUs and PSUs for which the RSU and PSU holders surrendered 88,825 and 70,733 RSUs and PSUs, respectively, to pay for minimum withholding taxes totaling approximately $6.5 million and $7.0 million, respectively. Stock options and unvested restricted units totaling approximately 8.0 million and 7.8 million shares of our common stock were outstanding as of June 30, 2024 and December 31, 2023, respectively. Share Repurchases In December 2021, the Board of Directors authorized a second capital return program to repurchase up to $750.0 million of outstanding stock over a three-year period. We accelerated the initiation of our planned 2024 share repurchases and in November 2023, we entered into an Accelerated Share Repurchase (“ASR”) agreement with Bank of America, N.A. to accelerate the remaining $250.0 million of share repurchases remaining under the approved capital return program. Pursuant to the agreement, at the inception of the ASR, we paid $250.0 million to Bank of America, N.A. and took initial delivery of 5.5 million shares. In June 2024, we finalized the transaction at an average price per share of $38.35 and received an additional 1.1 million shares. Our December 2021 share repurchase program was completed in June 2024 with a total of 19.1 million shares repurchased over the three-year period at an average price per share of $39.31. All shares repurchased under our capital return programs have been retired and have resumed their status of authorized and unissued shares In February 2024, our Board of Directors authorized a new capital return program to repurchase up to $750.0 million of our outstanding common stock.

v3.24.2.u1

Earnings per share	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Earnings per share	Earnings per share Basic earnings per share is computed by dividing net income for the period by the weighted average number of common shares outstanding during the period, without consideration for common stock equivalents. Outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and the Convertible Notes are considered common stock equivalents and are only included in the calculation of diluted earnings per common share when net income is reported and their effect is dilutive. Potentially dilutive common shares issuable upon vesting of stock options, RSUs and PSUs are determined using the average share price for each period under the treasury stock method. Potentially dilutive common shares issuable upon conversion of the Convertible Notes are determined using the if-converted method. Since we have committed to settle the principal amount of the Convertible Notes in cash upon conversion only, the number of shares for the conversion spread will be included as a dilutive common stock equivalent. A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Numerator Net income $ 93,245  $ 74,754  $ 170,068  $ 114,369  Denominator Weighted average common shares outstanding for basic earnings per share 127,116  131,730  127,029  133,369  Dilutive potential common stock outstanding Stock options 1,762  1,656  1,669  1,910  RSUs, PSUs and ESPP 344  157  399  363  Convertible Notes —  —  —  116  Weighted average common shares outstanding for diluted earnings per share 129,222  133,543  129,097  135,758  Earnings per share Basic $ 0.73  $ 0.57  $ 1.34  $ 0.86  Diluted $ 0.72  $ 0.56  $ 1.32  $ 0.84  Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Anti-dilutive securities (1) 26.7  27.7  26.8  27.4  (1) The anti-dilutive securities include outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and Convertible Notes

v3.24.2.u1

Commitments and Contingencies	6 Months Ended
	Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]
Commitments and Contingencies	Commitments and Contingencies From time to time, we may be involved in disputes, including litigation, relating to claims arising out of operations in the normal course of our business. Any of these claims could subject us to costly legal expenses and, while we generally believe that we have adequate insurance to cover many different types of liabilities, our insurance carriers may deny coverage or our policy limits may be inadequate to fully satisfy any damage awards or settlements. If this were to happen, the payment of any such awards could have a material adverse effect on our condensed consolidated statements of income and balance sheets. Additionally, any such claims, whether or not successful, could damage our reputation and business. We currently are not a party to any legal proceedings, the adverse outcome of which, in our opinion, individually or in the aggregate, would have a material adverse effect on our condensed consolidated statements of income or balance sheets.

v3.24.2.u1

Pay vs Performance Disclosure - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Pay vs Performance Disclosure
Net Income (Loss) Attributable to Parent	$ 93,245	$ 74,754	$ 170,068	$ 114,369

v3.24.2.u1

Insider Trading Arrangements	3 Months Ended
	Jun. 30, 2024
Trading Arrangements, by Individual
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

v3.24.2.u1

Summary of Significant Accounting Policies (Policies)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Basis of Presentation	Basis of Presentation The accompanying interim unaudited condensed consolidated financial statements have been prepared for purposes of and in accordance with United States generally accepted accounting principles (“U.S. GAAP”) and with the rules and regulations of the U.S. Securities and Exchange Commission (“SEC”) related to a quarterly report on Form 10-Q. Accordingly, they do not include all of the information and disclosures required by U.S. GAAP for a complete set of financial statements. These condensed consolidated financial statements and notes thereto should be read in conjunction with the audited consolidated financial statements and notes thereto included in our Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on February 20, 2024. The unaudited financial information for the interim periods presented herein reflects all adjustments which, in the opinion of management, are necessary for a fair presentation of the financial condition and results of operations for the periods presented, with such adjustments consisting only of normal recurring adjustments. Operating results for interim periods are not necessarily indicative of the operating results for an entire fiscal year.
Consolidation	The accompanying condensed consolidated financial statements include the accounts of Halozyme Therapeutics, Inc. and our wholly owned subsidiaries, Halozyme, Inc. and Antares Pharma, Inc., and Antares Pharma, Inc.’s wholly owned Swiss subsidiaries, Antares Pharma IPL AG and Antares Pharma AG. All intercompany accounts and transactions have been eliminated.
Use of Estimates	Use of Estimates The preparation of condensed consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and assumptions that affect the amounts reported in our condensed consolidated financial statements and accompanying notes. On an ongoing basis, we evaluate our estimates and judgments, which are based on historical and anticipated results and trends and on various other assumptions that we believe to be reasonable under the circumstances. By their nature, estimates are subject to an inherent degree of uncertainty and, as such, actual results may differ from our estimates
Cash Equivalents	Cash equivalents consist of highly liquid investments, readily convertible to cash, which mature within 90 days or less from the date of purchase. As of June 30, 2024, our cash and cash equivalents consisted of money market funds, bank certificate of deposits, U.S. treasury securities and demand deposits at commercial banks.
Marketable Securities	Marketable securities are investments with original maturities of more than 90 days from the date of purchase that are specifically identified to fund current operations. Marketable securities are considered available-for-sale. These investments are classified as current assets, even though the stated maturity date may be one year or more beyond the current balance sheet date which reflects management’s intention to use the proceeds from the sale of these investments to fund our operations, as necessary. Such available-for-sale investments are carried at fair value with unrealized gains and losses recorded in other comprehensive income and included as a separate component of stockholders’ equity. The cost of marketable securities is adjusted for amortization of premiums or accretion of discounts to maturity, and such amortization or accretion is included in investment and other income, net in our condensed consolidated statements of income. We use the specific identification method for calculating realized gains and losses on marketable securities sold. None of the realized gains and losses and declines in value that were judged to be as a result of credit loss on marketable securities, if any, are included in investment and other income, net in our condensed consolidated statements of income.
Fair Value of Financial Instruments	Fair Value of Financial Instruments The authoritative guidance for fair value measurements establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted prices in active markets; Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore requiring an entity to develop its own assumptions. Our financial instruments include cash equivalents, available-for-sale marketable securities, accounts receivable, prepaid expenses and other assets, accounts payable, accrued expenses and long-term debt. Fair value estimates of these instruments are made at a specific point in time based on relevant market information. These estimates may be subjective in nature and involve uncertainties and matters of significant judgment and therefore, cannot be determined with precision. The carrying amount of cash equivalents, accounts receivable, prepaid expenses and other assets, accounts payable and accrued expenses are generally considered to be representative of their respective fair values because of the short-term nature of those instruments. Available-for-sale marketable securities consist of asset-backed securities, corporate debt securities, U.S. Treasury securities, agency bonds and commercial paper, and are measured at fair value using Level 1 and Level 2 inputs. Level 2 financial instruments are valued using market prices on less active markets and proprietary pricing valuation models with observable inputs, including interest rates, yield curves, maturity dates, issue dates, settlement dates, reported trades, broker-dealer quotes, issue spreads, benchmark securities or other market related data. We obtain the fair value of Level 2 investments from our investment manager, who obtains these fair values from a third-party pricing source. We validate the fair values of Level 2 financial instruments provided by our investment manager by comparing these fair values to a third-party pricing source.
Accounts Receivable, net	Accounts Receivable, net Accounts receivable is recorded at the invoiced amount and is non-interest bearing. Accounts receivable is recorded net of estimated prompt pay discounts, distribution fees and chargebacks. We believe the risk of accounts being uncollectible is minimal; therefore, no significant allowances for doubtful accounts were established as of June 30, 2024 and December 31, 2023.
Inventories	Inventories Inventories are stated at lower of cost or net realizable value. Cost is determined on a first-in, first-out basis. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. Inventories are reviewed periodically for potential excess, dated or obsolete status. We evaluate the carrying value of inventories on a regular basis, taking into account such factors as historical and anticipated future sales compared to quantities on hand, the price we expect to obtain for products in their respective markets compared with historical cost and the remaining shelf life of goods on hand.
Leases	Leases We have entered into operating leases primarily for real estate and automobiles. These leases have contractual terms which range from three years to twelve years. We determine if an arrangement contains a lease at inception. Right of use (“ROU”) assets and liabilities resulting from operating leases are included in property and equipment, accrued expenses and other long-term liabilities on our condensed consolidated balance sheets. Operating lease ROU assets and liabilities are recognized based on the present value of the future minimum lease payments over the lease term at commencement date. As most of our leases do not provide an implicit rate, we use our incremental borrowing rate based on the information available at commencement date in determining the discount rate to calculate the present value of future payments. The operating lease ROU asset also includes any lease payments made and excludes lease incentives and initial direct costs incurred. Our leases often include options to extend or terminate the lease. These options are included in the lease term when it is reasonably certain that we will exercise that option. Short-term leases with an initial term of 12 months or less are not recorded on our condensed consolidated balance sheet. Lease expense for minimum lease payments is recognized on a straight-line basis over the lease term. We have lease agreements with lease and non-lease components, which are generally accounted for separately. For certain leases, such as automobiles, we account for the lease and non-lease components as a single lease component.
Property and Equipment, Net	Property and Equipment, Net Property and equipment, including ROU assets are recorded at cost, less accumulated depreciation and amortization. Equipment is depreciated using the straight-line method over its estimated useful life ranging from three years to ten years and leasehold improvements are amortized using the straight-line method over the estimated useful life of the asset or the lease term, whichever is shorter.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets We account for long-lived assets in accordance with authoritative guidance for impairment or disposal of long-lived assets. Long-lived assets are reviewed for events or changes in circumstances, which indicate that their carrying value may not be recoverable.
Comprehensive Income	Comprehensive Income Comprehensive income is defined as the change in equity during the period from transactions and other events and circumstances from non-owner sources.
Convertible Notes	Convertible Notes The 2024 Convertible Notes, the 2027 Convertible Notes and the 2028 Convertible Notes (collectively, the “Convertible Notes”) are accounted for in accordance with authoritative guidance for debt and derivatives. We evaluate all the embedded conversion options contained in the Convertible Notes to determine if there are embedded features that require bifurcation as a derivative as required by U.S. GAAP. Based on our analysis, we account for each of our Convertible Notes as single units of accounting, a liability, because we concluded that the conversion features do not require bifurcation as a derivative under embedded derivative authoritative guidance.
Cash Flow Hedges - Currency Risks	Cash Flow Hedges - Currency Risks Beginning in the second quarter of 2023, we entered into a cash flow hedging program to mitigate foreign currency exchange risk associated with forecasted royalty revenue denominated in Swiss francs. Under the program, we can hedge these forecasted royalties up to a maximum of four years into the future. We hedge these cash flow exposures to reduce the risk of our earnings and cash flows being adversely affected by fluctuations in exchange rates. In accordance with the hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge and are highly effective in offsetting changes to future cash flows on hedged transactions. Both at inception of the hedge and on an ongoing basis, we assess whether the foreign currency forward contracts are highly effective in offsetting changes in cash flows of hedged items on a prospective and retrospective basis. If we determine a (i) foreign currency forward contract is not highly effective as a cash flow hedge, (ii) foreign currency forward contract has ceased to be a highly effective hedge or (iii) forecasted transaction is no longer probable of occurring, we would discontinue hedge accounting treatment prospectively. We measure effectiveness based on the change in fair value of the forward currency forward contract and the fair value of the hypothetical foreign currency forward contract with terms that match the critical terms of the risk being hedged. No portion of our foreign currency forward contracts were excluded from the assessment of hedge effectiveness. As of June 30, 2024, all hedges were determined to be highly effective. The assets or liabilities associated with our hedging contracts are recorded at fair market value in prepaid expense and other current assets, accrued expenses, or other long-term liabilities, respectively, in our condensed consolidated balance sheets. Gains and losses related to changes in the fair market value of these hedging contracts are recorded as a component of accumulated other comprehensive income (loss) (“AOCI”) within stockholder’s equity in our condensed consolidated balance sheets and reclassified to royalty revenue in our condensed consolidated statements of income in the same period as the recognition of the underlying hedged transaction. In the event the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, within the defined hedge period, we reclassify the gains or losses on the related cash flow hedge from AOCI to royalties revenue in our condensed consolidated statements of income. Settlements from the cash flow hedge are included in operating activities on the condensed consolidated statements of cash flows. Since the fair market value of these hedging contracts is derived from current market rates, the hedging contracts are classified as derivative financial instruments. We do not use derivatives for speculative or trading purposes. As of June 30, 2024, amounts expected to be recognized as a net gain out of AOCI into our condensed consolidated statements of income during the next 12 months are not material.
Business Combinations	Business Combinations Under the acquisition method of accounting, we allocate the fair value of the total consideration transferred to the tangible and identifiable intangible assets acquired and liabilities assumed based on their estimated fair values on the date of acquisition. These valuations require us to make estimates and assumptions, especially with respect to intangible assets. We record the excess consideration over the aggregate fair value of tangible and intangible assets, net of liabilities assumed, as goodwill. Costs incurred to complete a business combination, such as legal and other professional fees, are expensed as incurred. If the initial accounting for a business combination is incomplete by the end of a reporting period that falls within the measurement period, we report provisional amounts in our financial statements. During the measurement period, we adjust the provisional amounts recognized at the acquisition date to reflect new information obtained about facts and circumstances that existed as of the acquisition date that, if known, would have affected the measurement of the amounts recognized as of that date. We record these adjustments to the provisional amounts with a corresponding offset to goodwill. Any adjustments identified after the measurement period are recorded in our condensed consolidated statements of income.
Goodwill and Intangible Assets	Assets acquired, including intangible assets and in-process research and development (“IPR&D”), and liabilities assumed are measured at fair value as of the acquisition date. Goodwill, which has an indefinite useful life, represents the excess of cost over fair value of the net assets acquired. Intangible assets acquired in a business combination that are used for IPR&D activities are considered indefinite lived until the completion or abandonment of the associated research and development efforts. Upon reaching the end of the relevant research and development project (i.e., upon commercialization), the IPR&D asset is amortized over its estimated useful life. If the relevant research and development project is abandoned, the IPR&D asset is expensed in the period of abandonment. Goodwill and IPR&D are not amortized; however, they are reviewed for impairment at least annually during the second quarter, or more frequently if an event occurs indicating the potential for impairment. Goodwill and IPR&D are considered to be impaired if the carrying value of the reporting unit or IPR&D asset exceeds its respective fair value. We perform our goodwill impairment analysis at the reporting unit level, which aligns with our reporting and operating segment structure and availability of discrete financial information. During the goodwill impairment review, we assess qualitative factors to determine whether it is more likely than not that the fair values of our reporting unit is less than the carrying amount, including goodwill. The qualitative factors include, but are not limited to, macroeconomic conditions, industry and market considerations, and our overall financial performance. If, after assessing the totality of these qualitative factors, we determine that it is not more likely than not that the fair value of our reporting unit is less than the carrying amounts, then no additional assessment is deemed necessary. Otherwise, we proceed to compare the estimated fair value of the reporting unit with the carrying value, including goodwill. If the carrying amount of the reporting unit exceeds the fair value, we record an impairment loss based on the difference. We may elect to bypass the qualitative assessment in a period and proceed to perform the quantitative goodwill impairment test. Our identifiable intangible assets with finite useful lives are typically comprised of acquired device technologies and product rights. The cost of identifiable intangible assets with finite lives is generally amortized on a straight-line basis over the assets’ respective estimated useful lives.
Intangible Assets and Other Long-Lived Assets	We perform regular reviews to determine if any event has occurred that may indicate intangible assets with finite useful lives and other long-lived assets are potentially impaired. If indicators of impairment exist, an impairment test is performed to assess the recoverability of the affected assets by determining whether the carrying amount of such assets exceeds the undiscounted expected future cash flows. If the affected assets are not recoverable, we estimate the fair value of the assets and record an impairment loss if the carrying value of the assets exceeds the fair value. Factors that may indicate potential impairment include a significant decline in our stock price and market capitalization compared to the net book value, significant changes in the ability of a particular asset to generate positive cash flows for our strategic business objectives, and the pattern of utilization of a particular asset.
Revenue Recognition and Cost of Sales	Revenue Recognition We generate revenues from payments received (i) as royalties from licensing our ENHANZE technology and other royalty arrangements, (ii) under collaborative agreements and (iii) from sales of our proprietary and partnered products. We recognize revenue when we transfer promised goods or services to customers in an amount that reflects the consideration to which we expect to be entitled in exchange for those goods or services. To determine revenue recognition for contracts with customers, we perform the following five steps: (i) identify the promised goods or services in the contract; (ii) identify the performance obligations in the contract, including whether they are distinct in the context of the contract; (iii) determine the transaction price, including the constraint on variable consideration; (iv) allocate the transaction price to the performance obligations in the contract; and (v) recognize revenue when (or as) we satisfy the performance obligations. ENHANZE and Device Royalties Under the terms of our ENHANZE collaboration and license agreements, our partners will pay us royalties at an on average mid-single digit percent rate of their sales if products under the collaboration are commercialized. All amounts owed to us are noncancelable after the underlying triggering event occurs, and nonrefundable once paid. Unless terminated earlier in accordance with its terms, collaborations generally continue in effect until the last to expire royalty payment term, as determined on a product by product and country by country basis, with each royalty term starting on the first commercial sale of that product and ending the later of: (i) a specified period or term set forth in the agreement or (ii) expiration of the last to expire of the valid claims of our patents covering rHuPH20 or other specified patents developed under the collaboration which valid claim covers a product developed under the collaboration. In general, when there are no valid claims of a specified patent developed under the collaboration covering the product in a given country, the royalty rate is reduced for those sales in that country upon the expiration of our patents covering rHuPH20. Janssen’s patents covering DARZALEX SC do not impact the timing for this royalty reduction. Partners may terminate the agreement prior to expiration for any reason in its entirety or on a target-by-target basis generally upon 90 days prior written notice to us. Upon any such termination, the license granted to partners (in total or with respect to the terminated target, as applicable) will terminate provided; however, that in the event of expiration of the agreement (as opposed to a termination), the on-going licenses granted may become perpetual, non-exclusive and fully paid. Sales-based milestones and royalties are recognized in the period the underlying sales or milestones occur. We do not receive final royalty reports from our ENHANZE partners until after we complete our financial statements for a prior quarter. Therefore, we recognize revenue based on estimates of the royalty earned, which are based on internal estimates and available preliminary reports provided by our partners. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments. We also earn royalties in connection with several of our licenses granted under license and development arrangements with our device partners. These royalties are based upon a percentage of commercial sales of partnered products with rates ranging from mid-single digits to low double digits and are tiered based on levels of net sales. These sales-based royalties, for which the license was deemed the predominant element to which the royalties relate, are estimated and recognized in the period in which the partners’ commercial sales occur. The royalties are generally reported and payable to us within 45 to 60 days after the end of the period in which the commercial sales are made. We base our estimates of royalties earned on actual sales information from our partners when available or estimated, prescription sales from external sources and estimated net selling price. We will record adjustments in the following quarter, if necessary, when final royalty reports are received. To date, we have not recorded any material adjustments. Revenue under ENHANZE and Device Collaborative Agreements ENHANZE Collaboration and License Agreements Under these agreements, we grant the collaboration partner a worldwide license to develop and commercialize products using our ENHANZE technology to combine our patented rHuPH20 enzyme with their proprietary biologics directed at up to a specified number of targets. Targets are usually licensed on an exclusive, global basis. Targets selected subsequent to inception of the arrangement generally require payment of an additional license fee. The collaboration partner is responsible for all development, manufacturing, clinical, regulatory, sales and marketing costs for any products developed under the agreement. We are responsible for supply of bulk rHuPH20 based on the collaboration partner’s purchase orders, and may also be separately engaged to perform research and development services. While these collaboration agreements are similar in that they originate from the same framework, each one is the result of an arms-length negotiation and thus may vary from one to the other. We generally collect an upfront license payment from collaboration partners, and are also entitled to receive event-based payments subject to collaboration partners’ achievement of specified development, regulatory and sales-based milestones. In several agreements, collaboration partners pay us annual fees to maintain their exclusive license rights if they are unable to advance product development to specified stages. We earn separate fees for bulk rHuPH20 supplies and research and development services. Although these agreements are in form identified as collaborative agreements, we concluded for accounting purposes they represent contracts with customers and are not subject to accounting literature on collaborative arrangements. This is because we grant to partners licenses to our intellectual property and provide supply of bulk rHuPH20 and research and development services which are all outputs of our ongoing activities, in exchange for respective consideration. Under these collaborative agreements, our partners lead development of assets, and we do not share in significant financial risks of their development or commercialization activities. Accordingly, we concluded our collaborative agreements are appropriately accounted for pursuant to U.S. GAAP. Under all of our ENHANZE collaborative agreements, we have identified licenses to use functional intellectual property as the only performance obligation. The intellectual property underlying the license is our proprietary ENHANZE technology which represents application of rHuPH20 to facilitate delivery of drugs. Each of the licenses grants the partners rights to use our intellectual property as it exists and is identified on the effective date of the license, because there is no ongoing development of the ENHANZE technology required. Therefore, we recognize revenue from licenses at the point when the license becomes effective and the partner has received access to our intellectual property, usually at the inception of the agreement. When partners can select additional targets to add to the licenses granted, we consider these rights to be options. We evaluate whether such options contain material rights, i.e. have exercise prices that are discounted compared to what we would charge for a similar license to a new partner. The exercise price of these options includes a combination of the target selection fees, event-based milestone payments and royalties. When these amounts in aggregate are not offered at a discount that exceeds discounts available to other customers, we conclude the option does not contain a material right, and we consider grants of additional licensing rights upon option exercises to be separate contracts (target selection contracts). Generally, we provide indemnification and protection of licensed intellectual property for our customers. These provisions are part of assurance that the licenses meet the agreements’ representations and are not obligations to provide goods or services. We also fulfill purchase orders for supply of bulk rHuPH20 and perform research and development services pursuant to project authorization forms for our partners, which represent separate contracts. In addition to our licenses, we price our supply of bulk rHuPH20 and research and development services at our regular selling prices, called standalone selling prices (“SSP”). Therefore, our partners do not have material rights to order these items at prices not reflective of SSP. Refer to the discussion below regarding recognition of revenue for these separate contracts. Transaction price for a contract represents the amount to which we are entitled in exchange for providing goods and services to the customer. Transaction price does not include amounts subject to uncertainties unless it is probable that there will be no significant reversal of revenue when the uncertainty is resolved. Apart from the upfront license payment (or target selection fees in the target selection contracts), all other fees we may earn under our collaborative agreements are subject to significant uncertainties of product development. Achievement of many of the event-based development and regulatory milestones may not be probable until such milestones are actually achieved. This generally relates to milestones such as obtaining marketing authorization approvals. With respect to other development milestones, e.g., dosing of a first patient in a clinical trial, achievement could be considered probable prior to its actual occurrence, based on the progress towards commencement of the trial. In order to evaluate progress towards commencement of a trial, we assess the status of activities leading up to our partner’s initiation of a trial such as feedback received from the applicable regulatory authorities, completion of Investigational New Drug (“IND”) or equivalent filings, readiness and availability of drug, readiness of study sites and our partner’s commitment of resources to the program. We do not include any amounts subject to uncertainties in the transaction price until it is probable that the amount will not result in a significant reversal of revenue in the future. At the end of each reporting period, we re-evaluate the probability of achievement of such milestones and any related constraint, and if necessary, adjust our estimate of the overall transaction price. When target exchange rights are held by partners, and the amounts attributed to these rights are not refundable, they are included in the transaction price. However, they are recorded as deferred revenues because we have a potential performance obligation to provide a new target upon an exchange right being exercised. These amounts are recognized in revenue when the right of exchange expires or is exercised. Because our agreements have one type of performance obligation (licenses) which are typically all transferred at the same time at agreement inception, allocation of transaction price often is not required. However, allocation is required when licenses for some of the individual targets are subject to rights of exchange, because revenue associated with these targets cannot be recognized. When allocation is needed, we perform an allocation of the upfront amount based on relative SSP of licenses for individual targets. We determine license SSP using an income-based valuation approach utilizing risk-adjusted discounted cash flow projections of the estimated return a licensor would receive. When amounts subject to uncertainties, such as milestones and royalties, are included in the transaction price, we attribute them to the specific individual target licenses which generate such milestone or royalty amounts. We also estimate SSP of bulk rHuPH20 and research and development services, to determine that our partners do not have material rights to order them at discounted prices. For supplies of bulk rHuPH20, because we effectively act as a contract manufacturer to our partners, we estimate and charge SSP based on the typical contract manufacturer margins consistent with all of our partners. We determine SSP of research and development services based on a fully-burdened labor rate. Our rates are comparable to those we observe in other collaborative agreements. We also have a history of charging similar rates to all of our partners. Upfront amounts allocated to licenses to individual targets are recognized as revenue when the license is transferred to the partner, as discussed above, if the license is not subject to exchange rights, or when the exchange right expires or is exercised. Development milestones and other fees are recognized in revenue when they are included in the transaction price, because by that time, we have already transferred the related license to the partner. In contracts to provide research and development services, such services represent the only performance obligation. The fees are charged based on hours worked by our employees and the fixed contractual rate per hour, plus third-party pass-through costs, on a monthly basis. We recognize revenues as the related services are performed based on the amounts billed, as the partner consumes the benefit of research and development work simultaneously as we perform these services, and the amounts billed reflect the value of these services to the customer. Device License, Development and Supply Arrangements We have several license, development and supply arrangements with pharmaceutical partners, under which we grant a license to our device technology and provide research and development services that often involve multiple performance obligations and highly-customized deliverables. For such arrangements, we identify each of the promised goods and services within the contract and the distinct performance obligations at inception of the contract and allocate consideration to each performance obligation based on relative SSP, which is generally determined based on the expected cost plus mark-up. If the contract includes an enforceable right to payment for performance completed to date and performance obligations are satisfied over time, we recognize revenue over the development period using either the input or output method depending on which is most appropriate given the nature of the distinct deliverable. For other contracts that do not contain an enforceable right to payment for performance completed to date, revenue is recognized when control of the product is transferred to the customer. Factors that may indicate transfer of control has occurred include the transfer of legal title, transfer of physical possession, the customer has obtained the significant risks and rewards of ownership of the assets, and we have a present right to payment. Our payment terms for development contracts may include an upfront payment equal to a percentage of the total contract value with the remaining portion to be billed upon completion and transfer of the individual deliverables or satisfaction of the individual performance obligations. We record a contract liability for cash received in advance of performance, which is presented within deferred revenue and deferred revenue, long-term in our condensed consolidated balance sheets and recognized as revenue in our condensed consolidated statements of income when the associated performance obligations have been satisfied. License fees and milestones received in exchange for the grant of a license to our functional intellectual property, such as patented technology and know-how in connection with a partnered development arrangement, are generally recognized at inception of the arrangement, or over the development period depending on the facts and circumstances, as the license is generally not distinct from the non-licensed goods or services to be provided under the contract. Milestone payments that are contingent upon the occurrence of future events are evaluated and recorded at the most likely amount, and to the extent that it is probable that a significant reversal of revenue will not occur when the associated uncertainty is resolved. Refer to Note 4, Revenue, for further discussion on our collaborative arrangements. Product Sales, Net Proprietary Product Sales Our commercial portfolio of proprietary products includes XYOSTED and Hylenex recombinant which we sell primarily to wholesale pharmaceutical distributors and specialty pharmacies, who sell the products to hospitals, retail chain drug stores and other end-user customers. Sales to wholesalers are made pursuant to purchase orders subject to the terms of a master agreement, and delivery of individual packages of products represents performance obligations under each purchase order. We use contract manufacturers to produce our proprietary products and third-party logistics (“3PL”) vendors to process and fulfill orders. We concluded we are the principal in the sales to wholesalers because we control access to services rendered by both vendors and direct their activities. We have no significant obligations to wholesalers to generate pull-through sales. Revenue is recognized when control has transferred to the customer, which is typically upon delivery, at the net selling price, which reflects the variable consideration for which reserves and sales allowances are established for estimated returns, wholesale distribution fees, prompt payment discounts, government rebates and chargebacks, plan rebate arrangements and patient discount and support programs. We recognize revenue from product sales and related cost of sales upon product delivery to the wholesaler location. At that time, the wholesalers take control of the product as they take title, bear the risk of loss of ownership, and have an enforceable obligation to pay us. They also have the ability to direct sales of product to their customers on terms and at prices they negotiate. Although wholesalers have product return rights, we do not believe they have a significant incentive to return the product to us. The determination of certain reserves and sales allowances requires us to make a number of judgements and estimates to reflect our best estimate of the transaction price and the amount of consideration to which we believe we would be ultimately entitled to receive. The expected value is determined based on unit sales data, contractual terms with customers and third-party payers, historical and estimated future percentage of rebates incurred on sales, historical and future insurance plan billings, any new or anticipated changes in programs or regulations that would impact the amount of the actual rebates, customer purchasing patterns, product expiration dates and levels of inventory in the distribution channel. The estimated amounts of credit for product returns, chargebacks, distribution fees, prompt payment discounts, rebates and customer co-pay support programs are included in accrued expenses and accounts receivable, net in our condensed consolidated balance sheets upon recognition of revenue from product sales. We monitor actual product returns, chargebacks, discounts and fees subsequent to the sale. If these amounts differ from our estimates, we make adjustments to these allowances, which are applied to increase or reduce product sales revenue and earnings in the period of adjustment. Selling prices initially billed to wholesalers are subject to discounts for prompt payment and subsequent chargebacks when wholesalers sell our products at negotiated discounted prices to members of certain group purchasing organizations (“GPOs”), Pharmacy Benefit Managers (“PBMs”) and government programs. We also pay quarterly distribution fees to certain wholesalers for inventory reporting and chargeback processing, and to PBMs and GPOs as administrative fees for services and for access to their members. We concluded the benefits received in exchange for these fees are not distinct from our sales of our products, and accordingly we apply these amounts to reduce revenues. Wholesalers also have rights to return unsold product nearing or past the expiration date. Because of the shelf life of our products and our lengthy return period, there may be a significant period of time between when the product is shipped and when we issue credits on returned product. We estimate the transaction price when we receive each purchase order taking into account the expected reductions of the selling price initially billed to the wholesaler arising from all of the above factors. We have compiled historical experience and data to estimate future returns and chargebacks of our products and the impact of the other discounts and fees we pay. When estimating these adjustments to the transaction price, we reduce it sufficiently to be able to assert that it is probable that there will be no significant reversal of revenue when the ultimate adjustment amounts are known. Each purchase order contains only one type of product, and is usually shipped to the wholesaler in a single shipment. Therefore, allocation of the transaction price to individual packages is not required. In connection with the orders placed by wholesalers, we incur costs such as commissions to our sales representatives. However, as revenue from product sales is recognized upon delivery to the wholesaler, which occurs shortly after we receive a purchase order, we do not capitalize these commissions and other costs, based on application of the practical expedient allowed within the applicable guidance. Partnered Product Sales Bulk rHuPH20 We sell bulk rHuPH20 to partners for use in research and development and, subsequent to receiving marketing approval, we sell it for use in collaboration commercial products. Sales are made pursuant to purchase orders subject to the terms of the collaborative agreement or a supply agreement, and delivery of units of bulk rHuPH20 represent performance obligations under each purchase order. We provide a standard warranty that the product conforms to specifications. We use contract manufacturers to produce bulk rHuPH20 and have concluded we are the principal in the sales to partners. The transaction price for each purchase order of bulk rHuPH20 is fixed based on the cost of production plus a contractual markup, and is not subject to adjustments. Allocation of the transaction price to individual quantities of the product is usually not required because each order contains only one type of product. We recognize revenue from the sale of bulk rHuPH20 as product sales and related cost of sales upon transfer of title to our partners. At that time, the partners take control of the product, bear the risk of loss of ownership, and have an enforceable obligation to pay us. Devices We are party to several license, development, supply and distribution arrangements with pharmaceutical partners, under which we produce and are the exclusive supplier of certain products, devices and/or components. Revenue is recognized when or as control of the goods transfers to the customer as discussed below. We are the exclusive supplier of OTREXUP® to Otter. Because this product is custom manufactured with no alternative use and we have a contractual right to payment for performance completed to date, control is continuously transferred to the customer as the product is produced pursuant to firm purchase orders. Revenue is recognized over time using the output method based on the contractual selling price and number of units produced. The amount of revenue recognized in excess of the amount shipped/billed to the customer, if any, is recorded as contract assets in our condensed consolidated balance sheets due to the short-term nature in which the amount is ultimately expected to be billed and collected from the customer. Other device partnered product sales are recognized at the point in time in which control is transferred to the customer, which is typically upon shipment. Sales terms and pricing are governed by the respective supply and distribution agreements, and there is generally no right of return. Revenue is recognized at the transaction price, which includes the contractual per unit selling price and estimated variable consideration, such as volume-based pricing arrangements, if any. We recognize revenue, including the estimated variable consideration we expect to receive for contract margin on future commercial sales, upon shipment of the goods to our partner. The estimated variable consideration is recognized at an amount we believe is not subject to significant reversal of revenue based on historical experience and is adjusted at each reporting period if the most likely amount of expected consideration changes or becomes fixed. Cost of Sales Cost of sales consists primarily of raw materials, third-party manufacturing costs, fill and finish costs, freight costs, internal costs and manufacturing overhead associated with the production of proprietary and partnered products. Cost of sales also consists of the write-down of excess, dated and obsolete inventories and the write-off of inventories that do not meet certain product specifications, if any.
Research and Development Expenses	Research and Development Expenses Research and development expenses include salaries and benefits, allocation of facilities and other overhead expenses, research related manufacturing services, contract services, and other outside expenses related to manufacturing, preclinical and regulatory activities and our partner development platforms. Research and development expenses are charged to operating expenses as incurred when these expenditures relate to our research and development efforts and have no alternative future uses. We are obligated to make upfront payments upon execution of certain research and development agreements. Advance payments, including nonrefundable amounts, for goods or services that will be used or rendered for future research and development activities are deferred. Such amounts are recognized as expense as the related goods are delivered or the related services are performed or such time when we do not expect the goods to be delivered or services to be performed.
Share-Based Compensation	Share-Based Compensation We record compensation expense associated with stock options, restricted stock units (“RSUs”), performance stock units (“PSUs”) and shares issued under our employee stock purchase plan (“ESPP”) in accordance with the authoritative guidance for share-based compensation. The cost of employee services received in exchange for an award of an equity instrument is measured at the grant date, based on the estimated fair value of the award, and is recognized as expense on a straight-line basis over the requisite service period of the award. Share-based compensation expense for an award with a performance condition is recognized when the achievement of such performance condition is determined to be probable. If the outcome of such performance condition is not determined to be probable or is not met, no compensation expense is recognized and any previously recognized compensation expense is reversed. Forfeitures are recognized as a reduction of share-based compensation expense as they occur.
Income Taxes	Income Taxes We provide for income taxes using the liability method. Under this method, deferred income tax assets and liabilities are determined based on the differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases at each reporting period. We measure deferred tax assets and liabilities using enacted tax rates for the year in which the differences are expected to reverse. Significant judgment is required by management to determine our provision for income taxes, our deferred tax assets and liabilities, and any associated valuation allowances recorded against our net deferred tax assets, which are based on complex and evolving tax regulations. Deferred tax assets (“DTA”) and other tax benefits are recorded when they are more likely than not to be realized. On a quarterly basis, we assess the need for valuation allowance on our DTAs, weighing all positive and negative evidence, to assess if it is more-likely-than-not that some or all of our DTAs will be realized. We recorded a provision for income taxes of $24.5 million and $43.7 million using an effective tax rate of 20.5% and 19.1% for the three and six months ended June 30, 2024. The difference between our effective tax rate and the U.S. federal statutory rate of 21% is primarily due to state income taxes, research and development credit generations, tax benefits on the Foreign Derived Intangible Income Deduction (“FDII”) (net of reserves), tax detriments on 162(m) and other share-based compensation.
Segment Information	Segment Information We operate our business in one operating segment, which includes all activities related to the research, development and commercialization of our proprietary enzymes and devices. This segment also includes revenues and expenses related to (i) research and development and manufacturing activities conducted under our collaborative agreements with third parties, and (ii) product sales of proprietary and partnered products. The chief operating decision-maker (“CODM”), our Chief Executive Officer (“CEO”), reviews the operating results on an aggregate basis and manages the operations as a single operating segment.
Adoption and Pending Adoption of Recent Accounting Pronouncements	Adoption and Pending Adoption of Recent Accounting Pronouncements The following table provides a brief description of recently issued accounting standards, those adopted in the current period and those not yet adopted: Standard Description Effective Date Adoption Method Effect on the Financial Statements or Other Significant Matters In November 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures. The new standard is intended to improve annual and interim reportable segment disclosure requirements regardless of number of reporting units, primarily through enhanced disclosures of significant expenses. The amendment requires public entities to disclose significant segment expenses that are regularly provided to the CODM and included within each reported measure of segment profit and loss. Annual periods beginning after December 15, 2023 (our 2024 Form 10-K), and interim periods within fiscal years beginning after December 15, 2024 (our Q1 2025 Form 10-Q) - Early adoption is permitted, including adoption in an interim period Retrospective We are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures. In December 2023, the FASB issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures. The new guidance includes amendments that further enhance income tax disclosures, primarily through standardization and disaggregation of rate reconciliation categories and income taxes paid by jurisdiction. Annual periods beginning after December 15, 2024 (our 2025 Form 10-K) - Early adoption is permitted Prospective or Retrospective We are currently evaluating the impact of the standard on our consolidated financial statements and related disclosures.

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Fair Value Measurement (Tables)	6 Months Ended
	Jun. 30, 2024
Fair Value Disclosures [Abstract]
Schedule of available-for-sale marketable securities	Available-for-sale marketable securities consisted of the following (in thousands): June 30, 2024 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Asset-backed securities $ 928  $ —  $ (2) $ 926  Corporate debt securities 52,579  —  (126) 52,453  U.S. treasury securities 282,769  1  (170) 282,600  Agency bonds 5,199  —  (12) 5,187  Total marketable securities, available-for-sale $ 341,475  $ 1  $ (310) $ 341,166  December 31, 2023 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Asset-backed securities $ 3,512  $ —  $ (8) $ 3,504  Corporate debt securities 6,022  1  (10) 6,013  U.S. treasury securities 175,996  200  (12) 176,184  Agency bonds 16,119  —  (16) 16,103  Commercial paper 15,826  —  —  15,826  Total marketable securities, available-for-sale $ 217,475  $ 201  $ (46) $ 217,630
Schedule of contractual maturities of available-for-sale debt securities	The estimated fair value of our contractual maturities of available-for-sale debt securities were as follows (in thousands): June 30, 2024 December 31, 2023 Due within one year $ 304,661  $ 197,633  Due after one year but within five years 36,505  19,997  Total estimated fair value of contractual maturities, available-for-sale $ 341,166  $ 217,630
Schedule of assets measured at fair value on a recurring basis	The following table summarizes, by major security type, our cash equivalents and available-for-sale marketable securities measured at fair value on a recurring basis and are categorized using the fair value hierarchy (in thousands): June 30, 2024 December 31, 2023 Level 1 Level 2 Total Estimated Fair Value Level 1 Level 2 Total Estimated Fair Value Assets Cash equivalents Money market funds $ 56,965  $ —  $ 56,965  $ 22,142  $ —  $ 22,142  U.S. treasury securities 20,000  —  20,000  2,000  —  2,000  Available-for-sale marketable    securities Asset-backed securities —  926  926  —  3,504  3,504  Corporate debt securities —  52,453  52,453  —  6,013  6,013  U.S. treasury securities 282,600  —  282,600  176,184  —  176,184  Agency bonds 5,187  —  5,187  16,103  —  16,103  Commercial paper —  —  —  —  15,826  15,826  Derivative instruments Currency hedging contracts (1) —  1,389  1,389  —  —  —  Total assets $ 364,752  $ 54,768  $ 419,520  $ 216,429  $ 25,343  $ 241,772  Liabilities Derivative instruments Currency hedging contracts (1) $ —  $ 688  $ 688  $ —  $ 9,480  $ 9,480  (1) Based on observable market transactions of spot currency rates, forward currency rates or equivalently-termed instruments. Carrying amounts of the financial assets and liabilities are equal to the fair value. As of June 30, 2024, the derivative assets and liabilities recorded within prepaid expenses and other current assets, prepaid expense and other assets and other long-term liabilities in our condensed consolidated balance sheets were $1.2 million, $0.2 million and $0.7 million, respectively.

v3.24.2.u1

Revenue (Tables)	6 Months Ended
	Jun. 30, 2024
Revenue from Contract with Customer [Abstract]
Schedule of disaggregation of revenues	Our disaggregated revenues were as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Royalties $ 124,918  $ 111,740  $ 245,511  $ 211,380  Product sales, net Proprietary product sales 44,139  32,293  79,394  60,254  Bulk rHuPH20 sales 24,634  27,133  35,144  49,202  Device partnered product sales 10,113  14,463  22,931  25,227  Total product sales, net 78,886  73,889  137,469  134,683  Revenues under collaborative agreements Event-based development and regulatory milestones and other fees 25,500  33,000  39,500  33,000  Device licensing and development revenue 2,049  2,409  4,752  4,118  Total revenues under collaborative agreements 27,549  35,409  44,252  37,118  Total revenues $ 231,353  $ 221,038  $ 427,232  $ 383,181
Schedule of accounts receivable, deferred revenues from contracts with customers, and amounts under collaborative agreements included in transaction price	Accounts receivable, other contract assets and deferred revenues (contract liabilities) from contracts with customers, including partners, consisted of the following (in thousands): June 30, 2024 December 31, 2023 Accounts receivable, net $ 210,416  $ 233,254  Other contract assets 4,108  956  Deferred revenues 4,856  4,048

v3.24.2.u1

Certain Balance Sheet Items (Tables)	6 Months Ended
	Jun. 30, 2024
Balance Sheet Related Disclosures [Abstract]
Schedule of accounts receivable	Accounts receivable, net and contract assets consisted of the following (in thousands): June 30, 2024 December 31, 2023 Accounts receivable from product sales to partners $ 29,307  $ 58,588  Accounts receivable from revenues under collaborative agreements 9,803  16,183  Accounts receivable from royalty payments 128,015  118,170  Accounts receivable from other product sales 49,909  47,060  Contract assets 4,108  956  Total accounts receivable and contract assets 221,142  240,957  Allowance for distribution fees and discounts (6,618) (6,747) Total accounts receivable, net and contract assets $ 214,524  $ 234,210
Schedule of inventories	Inventories, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Raw materials $ 27,223  $ 23,646  Work-in-process 36,690  34,025  Finished goods 126,643  69,930  Total inventories, net 190,556  127,601  Less long-term portion (1) 31,244  —  Total inventories, net current $ 159,312  $ 127,601  (1) Long-term portion of inventories, net represents inventory expected to remain on hand beyond one year and therefore is included in prepaid expenses and other assets in the condensed consolidated balance sheets.
Schedule of prepaid expenses and other assets	Prepaid expenses and other assets consisted of the following (in thousands): June 30, 2024 December 31, 2023 Prepaid manufacturing expenses $ 30,928  $ 36,850  Other prepaid expenses 53,936  12,902  Other assets (1) 21,304  16,677  Total prepaid expenses and other assets 106,168  66,429  Less long-term portion (1) (21,237) (17,816) Total prepaid expenses and other assets, current $ 84,931  $ 48,613  (1) Excludes long-term inventories, net discussed in the table above.
Schedule of property and equipment, net	Property and equipment, net consisted of the following (in thousands): June 30, 2024 December 31, 2023 Research equipment $ 8,796  $ 8,588  Manufacturing equipment 37,427  32,472  Computer and office equipment 9,183  9,722  Leasehold improvements 7,042  6,987  Subtotal 62,448  57,769  Accumulated depreciation and amortization (22,239) (19,661) Subtotal 40,209  38,108  Right of use of assets 34,791  36,836  Total property and equipment, net $ 75,000  $ 74,944
Schedule of accrued expenses	Accrued expenses consisted of the following (in thousands): June 30, 2024 December 31, 2023 Accrued compensation and payroll taxes $ 12,561  $ 17,361  Accrued outsourced manufacturing expenses 13,523  12,361  Income taxes payable 29,265  963  Product returns and sales allowance 42,653  41,932  Other accrued expenses 19,771  33,584  Lease liability 30,664  32,197  Total accrued expenses 148,437  138,398  Less long-term portion (30,507) (37,720) Total accrued expenses, current $ 117,930  $ 100,678

v3.24.2.u1

Goodwill and Intangible Assets (Tables)	6 Months Ended
	Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]
Schedule of Goodwill	A summary of the activity impacting goodwill is presented below (in thousands): Balance as of December 31, 2023 $ 416,821  Adjustment —  Balance as of June 30, 2024 $ 416,821
Schedule of Finite-Lived Intangible Assets	The following table shows the cost, accumulated amortization and weighted average useful life in years for our acquired intangible assets as of June 30, 2024 (in thousands). Weighted Average Useful Life (in years) Gross Carrying Value Accumulated Amortization Net Carrying Value Auto Injector technology platform 7 $ 402,000  $ 120,878  $ 281,122  XYOSTED proprietary product 10 136,200  28,668  107,532  Total finite-lived intangibles, net $ 538,200  $ 149,546  $ 388,654  ATRS-1902 (IPR&D) Indefinite 48,700  Total intangibles, net $ 437,354
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense	Estimated future annual amortization of finite-lived intangible assets is shown in the following table (in thousands). Actual amortization expense to be reported in future periods could differ from these estimates as a result of acquisitions, divestitures, and asset impairments, among other factors. Year Amortization Expense Remainder of 2024 $ 35,524  2025 71,049  2026 71,049  2027 71,049  2028 71,049  Thereafter 68,934  Total $ 388,654

v3.24.2.u1

Long-Term Debt, Net (Tables)	6 Months Ended
	Jun. 30, 2024
Debt Disclosure [Abstract]
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments	Net Carrying Amounts of our Convertible Notes The carrying amount and fair value of our Convertible Notes were as follows (in thousands). June 30, 2024 December 31, 2023 Principal amount 2027 Convertible Notes $ 805,000  $ 805,000  2028 Convertible Notes 720,000  720,000  Total principal amount $ 1,525,000  $ 1,525,000  Unamortized debt discount 2027 Convertible Notes $ (9,237) $ (10,950) 2028 Convertible Notes (13,248) (14,802) Total unamortized debt discount $ (22,485) $ (25,752) Carrying amount 2027 Convertible Notes $ 795,763  $ 794,050  2028 Convertible Notes 706,752  705,198  Total carrying amount $ 1,502,515  $ 1,499,248  Fair value based on trading levels (Level 2) 2027 Convertible Notes $ 768,920  $ 695,826  2028 Convertible Notes 801,115  670,522  Total fair value of outstanding notes $ 1,570,035  $ 1,366,348  Remaining amortization per period of debt discount (in years) 2027 Convertible Notes 2.7 3.2 2028 Convertible Notes 4.1 4.6
Interest Income and Interest Expense Disclosure	The following table summarizes the components of interest expense and the effective interest rates for each of our Convertible Notes (in thousands). Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Coupon interest 2024 Convertible Notes $ — $ — $ —  $ 36  2027 Convertible Notes 503 503 1,006  1,006  2028 Convertible Notes 1,800 1,800 3,600  3,600  Total coupon interest $ 2,303 $ 2,303 $ 4,606  $ 4,642  Amortization of debt discount 2024 Convertible Notes $ — $ — $ —  $ 24  2027 Convertible Notes 857 852 1,713  1,702  2028 Convertible Notes 778 767 1,553  1,531  Total amortization of debt discount $ 1,635 $ 1,619 $ 3,266  $ 3,257  Interest expense 2024 Convertible Notes $ — $ — $ —  $ 60  2027 Convertible Notes 1,360 1,355 2,719  2,708  2028 Convertible Notes 2,578 2,567 5,153  5,131  Total interest expense $ 3,938 $ 3,922 $ 7,872  $ 7,899  Effective interest rates 2027 Convertible Notes 0.7  % 0.7  % 0.7  % 0.7  % 2028 Convertible Notes 1.5  % 1.5  % 1.5  % 1.5  %

v3.24.2.u1

Share-based Compensation (Tables)	6 Months Ended
	Jun. 30, 2024
Share-Based Payment Arrangement, Noncash Expense [Abstract]
Schedule of share-based compensation expense	The following table summarized share-based compensation expense included in our condensed consolidated statements of income related to share-based awards (in thousands): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Research and development $ 2,568  $ 3,670  $ 5,913  $ 6,771  Selling, general and administrative 6,903  5,952  13,432  10,817  Total share-based compensation expense $ 9,471  $ 9,622  $ 19,345  $ 17,588
Schedule of share-based compensation expense by type	Share-based compensation expense by type of share-based award was as follows (in thousands): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Stock options $ 3,894  $ 4,190  $ 8,193  $ 7,645  RSUs, PSUs and ESPP 5,577  5,432  11,152  9,943  Total share-based compensation expense $ 9,471  $ 9,622  $ 19,345  $ 17,588
Schedule of assumptions used in Black-Scholes model	The assumptions used in the Black-Scholes Model were as follows: Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Expected volatility 40.01 - 40.07% 40.26 - 40.72% 40.01 - 40.08% 39.68 - 40.72% Average expected term (in years) 5.4 5.0 5.0 4.8 Risk-free interest rate 4.64 - 4.70% 3.37 - 3.70% 3.80 - 4.70% 3.37 - 4.27% Expected dividend yield —  —  —  —
Schedule of unrecognized estimated compensation cost by type	Total unrecognized estimated compensation cost by type of award and the weighted-average remaining requisite service period over which such expense is expected to be recognized was as follows (in thousands, unless otherwise noted): June 30, 2024   Unrecognized Expense Remaining Weighted-Average Recognition Period (in years) Stock options $ 35,381  2.56 RSUs 50,035  2.92 PSUs 9,577  2.05 ESPP 253  0.40

v3.24.2.u1

Earnings per share (Tables)	6 Months Ended
	Jun. 30, 2024
Earnings Per Share [Abstract]
Schedule of reconciliation of numerators and denominators of basic and diluted computations	A reconciliation of the numerators and the denominators of the basic and diluted earnings per share computations is as follows (in thousands, except per share amounts): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Numerator Net income $ 93,245  $ 74,754  $ 170,068  $ 114,369  Denominator Weighted average common shares outstanding for basic earnings per share 127,116  131,730  127,029  133,369  Dilutive potential common stock outstanding Stock options 1,762  1,656  1,669  1,910  RSUs, PSUs and ESPP 344  157  399  363  Convertible Notes —  —  —  116  Weighted average common shares outstanding for diluted earnings per share 129,222  133,543  129,097  135,758  Earnings per share Basic $ 0.73  $ 0.57  $ 1.34  $ 0.86  Diluted $ 0.72  $ 0.56  $ 1.32  $ 0.84
Antidilutive securities excluded from calculation of diluted earnings per common share	Shares which have been excluded from the calculation of diluted earnings per common share because their effect was anti-dilutive include the following (shares in millions): Three Months Ended June 30, Six Months Ended June 30,   2024 2023 2024 2023 Anti-dilutive securities (1) 26.7  27.7  26.8  27.4  (1) The anti-dilutive securities include outstanding stock options, unvested RSUs, unvested PSUs, common shares expected to be issued under our ESPP and Convertible Notes

v3.24.2.u1

Organization and Business (Details)	6 Months Ended
	Jun. 30, 2024 product
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties received, number of products sold	8
Takeda
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties received, number of products sold	1
Janssen
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties received, number of products sold	1
Argenx
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties received, number of products sold	1
Roche
Collaborative Arrangement and Arrangement Other than Collaborative [Line Items]
Royalties received, number of products sold	5

v3.24.2.u1

Summary of Significant Accounting Policies - Accounts Receivable, net (Details) - USD ($)	Jun. 30, 2024	Dec. 31, 2023
Accounting Policies [Abstract]
Accounts receivable, allowance for doubtful accounts	$ 0	$ 0

v3.24.2.u1

Summary of Significant Accounting Policies - Leases (Details)	Jun. 30, 2024
Minimum
Lessee, Lease, Description [Line Items]
Term of leases	3 years
Maximum
Lessee, Lease, Description [Line Items]
Term of leases	12 years

v3.24.2.u1

Summary of Significant Accounting Policies - Property and Equipment, net (Details)	Jun. 30, 2024
Minimum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	3 years
Maximum
Property, Plant and Equipment [Line Items]
Property and equipment, useful life	10 years

v3.24.2.u1

Summary of Significant Accounting Policies - Cash Flow Hedges - Currency Risks (Details) - Cash Flow Hedging - Currency hedging contracts	3 Months Ended
	Jun. 30, 2023
Accounting Policies [Abstract]
Derivative, contract term	4 years
Derivative [Line Items]
Derivative, contract term	4 years

v3.24.2.u1

Summary of Significant Accounting Policies - Revenue and Cost of Product Sales (Details)	6 Months Ended
	Jun. 30, 2024
Accounting Policies [Abstract]
Period of contract termination by written notice	90 days

v3.24.2.u1

Summary of Significant Accounting Policies - Income Taxes (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Accounting Policies [Abstract]
Income tax provision	$ 24,498	$ 18,402	$ 43,703	$ 31,025
Effective income tax rate, percent	20.50%		19.10%

v3.24.2.u1

Summary of Significant Accounting Policies - Segment Information (Details)	6 Months Ended
	Jun. 30, 2024 segment
Accounting Policies [Abstract]
Number of operating segments	1

v3.24.2.u1

Fair Value Measurement - Components of Available-for-sale Marketable Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Schedule of Available-for-sale Securities
Amortized Cost	$ 341,475	$ 217,475
Gross Unrealized Gains	1	201
Gross Unrealized Losses	(310)	(46)
Estimated Fair Value	341,166	217,630
Asset-backed securities
Schedule of Available-for-sale Securities
Amortized Cost	928	3,512
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(2)	(8)
Estimated Fair Value	926	3,504
Corporate debt securities
Schedule of Available-for-sale Securities
Amortized Cost	52,579	6,022
Gross Unrealized Gains	0	1
Gross Unrealized Losses	(126)	(10)
Estimated Fair Value	52,453	6,013
U.S. treasury securities
Schedule of Available-for-sale Securities
Amortized Cost	282,769	175,996
Gross Unrealized Gains	1	200
Gross Unrealized Losses	(170)	(12)
Estimated Fair Value	282,600	176,184
Agency bonds
Schedule of Available-for-sale Securities
Amortized Cost	5,199	16,119
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(12)	(16)
Estimated Fair Value	5,187	16,103
Commercial paper
Schedule of Available-for-sale Securities
Amortized Cost		15,826
Gross Unrealized Gains		0
Gross Unrealized Losses		0
Estimated Fair Value	$ 0	$ 15,826

v3.24.2.u1

Fair Value Measurement - Narrative (Details)	Jun. 30, 2024 USD ($) security	Dec. 31, 2023 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Number of loss positions | security	41
Fair market value of gross unrealized loss position	$ 315,500,000
Unrealized loss position of debt securities	310,000	$ 46,000
Credit loss	0
Available-for-sale marketable securities	341,166,000	217,630,000
Level 3
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Available-for-sale marketable securities	$ 0	$ 0

v3.24.2.u1

Fair Value Measurement - Contractual Maturities of Available-for-sale Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Fair Value Disclosures [Abstract]
Due within one year	$ 304,661	$ 197,633
Due after one year but within five years	36,505	19,997
Total estimated fair value of contractual maturities, available-for-sale	$ 341,166	$ 217,630

v3.24.2.u1

Fair Value Measurement - Assets Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Assets
Available-for-sale marketable securities	$ 341,166	$ 217,630
Total assets	419,520	241,772
Liabilities
Derivative asset, current	1,200
Derivative asset, noncurrent	200
Derivative liability, noncurrent	$ 700
Derivative Asset, Statement of Financial Position [Extensible Enumeration]	Total prepaid expenses and other assets, current
Derivative Asset, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Prepaid Expense and Other Assets, Noncurrent
Derivative Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration]	Other long-term liabilities
Currency hedging contracts
Assets
Derivative instruments	$ 1,389	0
Liabilities
Derivative instruments	688	9,480
Asset-backed securities
Assets
Available-for-sale marketable securities	926	3,504
Corporate debt securities
Assets
Available-for-sale marketable securities	52,453	6,013
U.S. treasury securities
Assets
Available-for-sale marketable securities	282,600	176,184
Agency bonds
Assets
Available-for-sale marketable securities	5,187	16,103
Commercial paper
Assets
Available-for-sale marketable securities	0	15,826
Money market funds
Assets
Cash equivalents	56,965	22,142
U.S. treasury securities
Assets
Cash equivalents	20,000	2,000
Level 1
Assets
Total assets	364,752	216,429
Level 1 | Currency hedging contracts
Assets
Derivative instruments	0	0
Liabilities
Derivative instruments	0	0
Level 1 | Asset-backed securities
Assets
Available-for-sale marketable securities	0	0
Level 1 | Corporate debt securities
Assets
Available-for-sale marketable securities	0	0
Level 1 | U.S. treasury securities
Assets
Available-for-sale marketable securities	282,600	176,184
Level 1 | Agency bonds
Assets
Available-for-sale marketable securities	5,187	16,103
Level 1 | Commercial paper
Assets
Available-for-sale marketable securities	0	0
Level 1 | Money market funds
Assets
Cash equivalents	56,965	22,142
Level 1 | U.S. treasury securities
Assets
Cash equivalents	20,000	2,000
Level 2
Assets
Total assets	54,768	25,343
Level 2 | Currency hedging contracts
Assets
Derivative instruments	1,389	0
Liabilities
Derivative instruments	688	9,480
Level 2 | Asset-backed securities
Assets
Available-for-sale marketable securities	926	3,504
Level 2 | Corporate debt securities
Assets
Available-for-sale marketable securities	52,453	6,013
Level 2 | U.S. treasury securities
Assets
Available-for-sale marketable securities	0	0
Level 2 | Agency bonds
Assets
Available-for-sale marketable securities	0	0
Level 2 | Commercial paper
Assets
Available-for-sale marketable securities	0	15,826
Level 2 | Money market funds
Assets
Cash equivalents	0	0
Level 2 | U.S. treasury securities
Assets
Cash equivalents	$ 0	$ 0

v3.24.2.u1

Revenue - Disaggregated Revenues (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Disaggregation of Revenue [Line Items]
Total revenues	$ 231,353	$ 221,038	$ 427,232	$ 383,181
Royalties
Disaggregation of Revenue [Line Items]
Total revenues	124,918	111,740	245,511	211,380
Product sales, net
Disaggregation of Revenue [Line Items]
Total revenues	78,886	73,889	137,469	134,683
Proprietary product sales
Disaggregation of Revenue [Line Items]
Total revenues	44,139	32,293	79,394	60,254
Bulk rHuPH20 sales
Disaggregation of Revenue [Line Items]
Total revenues	24,634	27,133	35,144	49,202
Device partnered product sales
Disaggregation of Revenue [Line Items]
Total revenues	10,113	14,463	22,931	25,227
Collaborative Agreements
Disaggregation of Revenue [Line Items]
Total revenues	27,549	35,409	44,252	37,118
Event-based development and regulatory milestones and other fees
Disaggregation of Revenue [Line Items]
Total revenues	25,500	33,000	39,500	33,000
Device licensing and development revenue
Disaggregation of Revenue [Line Items]
Total revenues	$ 2,049	$ 2,409	$ 4,752	$ 4,118

v3.24.2.u1

Revenue - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2024	Jun. 30, 2024	Dec. 31, 2023
Disaggregation of Revenue [Line Items]
Revenue recognized variable consideration and other uncertainties satisfied	$ 25,500	$ 39,500
Revenue recognized previously included in deferred revenue	500	600
Deferred revenues	4,856	4,856	$ 4,048
Contract assets	4,108	4,108	$ 956
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation	$ 1,300	$ 1,300
Deferred revenue, remaining performance obligation, expected timing	12 months	12 months
Other collaborators
Disaggregation of Revenue [Line Items]
Revenue, remaining performance obligation	$ 89,200	$ 89,200
License Fees and Event-Based
Disaggregation of Revenue [Line Items]
Revenue recognized from prior periods	150,400	285,000
Product
Disaggregation of Revenue [Line Items]
Revenue remaining performance obligations, related to unfulfilled product purchase orders	$ 84,300	$ 84,300

v3.24.2.u1

Revenue - Accounts Receivable, Other Contract Assets and Contract Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Revenue from Contract with Customer [Abstract]
Accounts receivable, net	$ 210,416	$ 233,254
Contract assets	4,108	956
Deferred revenues	$ 4,856	$ 4,048

v3.24.2.u1

Certain Balance Sheet Items - Accounts Receivable, net (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]
Contract assets	$ 4,108	$ 956
Total accounts receivable and contract assets	221,142	240,957
Allowance for distribution fees and discounts	(6,618)	(6,747)
Total accounts receivable, net and contract assets	214,524	234,210
Device partnered product sales
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	29,307	58,588
Revenues under collaborative agreements
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	9,803	16,183
Royalties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	128,015	118,170
Other product sales
Accounts, Notes, Loans and Financing Receivable [Line Items]
Accounts receivable	$ 49,909	$ 47,060

v3.24.2.u1

Certain Balance Sheet Items - Inventories (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Raw materials	$ 27,223	$ 23,646
Work-in-process	36,690	34,025
Finished goods	126,643	69,930
Total inventories, net	190,556	127,601
Less long-term portion	31,244	0
Total inventories, net	$ 159,312	$ 127,601

v3.24.2.u1

Certain Balance Sheet Items - Prepaid Expenses and Other Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Prepaid manufacturing expenses	$ 30,928	$ 36,850
Other prepaid expenses	53,936	12,902
Other assets	21,304	16,677
Total prepaid expenses and other assets	106,168	66,429
Less long-term portion	(21,237)	(17,816)
Total prepaid expenses and other assets, current	$ 84,931	$ 48,613

v3.24.2.u1

Certain Balance Sheet Items - Property and Equipment, net (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 62,448		$ 62,448		$ 57,769
Accumulated depreciation and amortization	(22,239)		(22,239)		(19,661)
Subtotal	40,209		40,209		38,108
Right of use of assets	34,791		34,791		36,836
Total property and equipment, net	75,000		75,000		74,944
Depreciation and amortization	2,600	$ 2,800	5,012	$ 5,415
Right-of-use asset amortization	1,400	$ 1,400	2,900	$ 2,800
Research equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	8,796		8,796		8,588
Manufacturing equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	37,427		37,427		32,472
Computer and office equipment
Property, Plant and Equipment [Line Items]
Property and equipment, gross	9,183		9,183		9,722
Leasehold improvements
Property, Plant and Equipment [Line Items]
Property and equipment, gross	$ 7,042		$ 7,042		$ 6,987

v3.24.2.u1

Certain Balance Sheet Items - Accrued Expenses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023	Dec. 31, 2023
Balance Sheet Related Disclosures [Abstract]
Accrued compensation and payroll taxes	$ 12,561		$ 12,561		$ 17,361
Accrued outsourced manufacturing expenses	13,523		13,523		12,361
Income taxes payable	29,265		29,265		963
Product returns and sales allowance	42,653		42,653		41,932
Other accrued expenses	19,771		19,771		33,584
Lease liability	30,664		30,664		32,197
Total accrued expenses	148,437		148,437		138,398
Less long-term portion	(30,507)		(30,507)		(37,720)
Total accrued expenses, current	117,930		117,930		$ 100,678
Expense associated with accretion of lease liabilities	600	$ 600	1,200	$ 1,300
Total operating lease cost	2,000	2,000	4,000	4,100
Cash paid for amounts related to leases	$ 1,700	$ 1,700	$ 3,500	$ 3,400

v3.24.2.u1

Goodwill and Intangible Assets - Goodwill Rollforward (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Goodwill [Roll Forward]
Goodwill, Beginning Balance	$ 416,821
Adjustment	0
Goodwill, Ending Balance	$ 416,821

v3.24.2.u1

Goodwill and Intangible Assets - Narrative (Details)	6 Months Ended
	Jun. 30, 2024
Minimum
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life (in years)	7 years
Maximum
Finite-Lived Intangible Assets [Line Items]
Weighted average useful life (in years)	10 years

v3.24.2.u1

Goodwill and Intangible Assets - Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2024	Dec. 31, 2023
Finite-Lived Intangible Assets [Line Items]
Gross Carrying Value	$ 538,200
Accumulated Amortization	149,546
Total	388,654
ATRS-1902 (IPR&D)	48,700
Total intangibles, net	$ 437,354	$ 472,879
Auto Injector technology platform
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (in years)	7 years
Gross Carrying Value	$ 402,000
Accumulated Amortization	120,878
Total	$ 281,122
XYOSTED proprietary product
Finite-Lived Intangible Assets [Line Items]
Weighted Average Useful Life (in years)	10 years
Gross Carrying Value	$ 136,200
Accumulated Amortization	28,668
Total	$ 107,532

v3.24.2.u1

Goodwill and Intangible Assets - Future Amortization (Details) $ in Thousands	Jun. 30, 2024 USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2024	$ 35,524
2025	71,049
2026	71,049
2027	71,049
2028	71,049
Thereafter	68,934
Total	$ 388,654

v3.24.2.u1

Long-Term Debt, Net - Narrative (Details)	1 Months Ended
	Mar. 31, 2023 USD ($) shares	Aug. 31, 2022 USD ($) trading_day businessDay $ / shares	May 31, 2022 USD ($)	Mar. 31, 2021 USD ($) trading_day businessDay $ / shares	Jan. 31, 2021 $ / shares	Nov. 30, 2019 USD ($)	Jun. 30, 2024 USD ($)	Dec. 31, 2023 USD ($)	Aug. 15, 2022 $ / shares
Debt Instrument [Line Items]
Aggregate principal							$ 1,525,000,000	$ 1,525,000,000
Conversion of debt, principal	$ 13,500,000
Stock issued for conversion of debt instrument (in shares) | shares	288,886
1.00% Convertible Senior Notes due 2028
Debt Instrument [Line Items]
Aggregate principal							720,000,000	720,000,000
Cap call transaction, cap price per share (usd per share) | $ / shares		$ 75.4075
Sale of stock premium over last reported sale price, percentage		75.00%
Sale of stock, price per share (usd per share) | $ / shares									$ 43.09
Payment for capped calls		$ 69,100,000
1.00% Convertible Senior Notes due 2028 | Convertible Debt
Debt Instrument [Line Items]
Interest rate, stated percentage		1.00%
Aggregate principal		$ 720,000,000
Lenders fee		18,000,000
Proceeds from issuance of 2028 Convertible Notes		702,000,000
Payment of debt issuance cost		$ 1,000,000
Debt, convertible, conversion ratio		17.8517
Debt, convertible, conversion price (usd per share) | $ / shares		$ 56.02
1.00% Convertible Senior Notes due 2028 | Convertible Debt | Period One
Debt Instrument [Line Items]
Convertible, threshold percentage of stock price trigger		130.00%
Convertible, threshold trading days | trading_day		20
Convertible, threshold consecutive trading days | trading_day		30
1.00% Convertible Senior Notes due 2028 | Convertible Debt | Period Two
Debt Instrument [Line Items]
Convertible, threshold percentage of stock price trigger		98.00%
Convertible, threshold consecutive trading days | trading_day		5
Convertible, threshold consecutive business days | businessDay		5
0.25% Convertible Senior Notes due 2027
Debt Instrument [Line Items]
Aggregate principal							805,000,000	$ 805,000,000
Proceeds from issuance of 2028 Convertible Notes				$ 784,900,000
0.25% Convertible Senior Notes due 2027 | Convertible Debt
Debt Instrument [Line Items]
Interest rate, stated percentage				0.25%
Aggregate principal				$ 805,000,000
Lenders fee				20,100,000
Payment of debt issuance cost				$ 400,000
Debt, convertible, conversion ratio				12.9576
Debt, convertible, conversion price (usd per share) | $ / shares				$ 77.17
0.25% Convertible Senior Notes due 2027 | Convertible Debt | Period One
Debt Instrument [Line Items]
Convertible, threshold percentage of stock price trigger				130.00%
Convertible, threshold trading days | trading_day				20
Convertible, threshold consecutive trading days | trading_day				30
0.25% Convertible Senior Notes due 2027 | Convertible Debt | Period Two
Debt Instrument [Line Items]
Convertible, threshold percentage of stock price trigger				98.00%
Convertible, threshold consecutive trading days | trading_day				5
Convertible, threshold consecutive business days | businessDay				5
2024 Convertible Notes
Debt Instrument [Line Items]
Proceeds from issuance of 2028 Convertible Notes						$ 447,300,000
2024 Convertible Notes | Convertible Debt
Debt Instrument [Line Items]
Interest rate, stated percentage						1.25%
Aggregate principal						$ 460,000,000.0
Lenders fee						12,700,000
Payment of debt issuance cost						$ 300,000
Debt, convertible, conversion ratio					41.9208
Debt, convertible, conversion price (usd per share) | $ / shares					$ 23.85
Credit Agreement | Revolving Credit Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity			$ 575,000,000
Debt issuance costs							3,600,000
Credit Agreement | Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage			0.15%
Credit Agreement | Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Commitment fee percentage			0.35%
Credit Agreement | SOFR | Revolving Credit Facility | Variable Rate Component One
Debt Instrument [Line Items]
Basis spread on variable rate			0.10%
Credit Agreement | SOFR | Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate			1.00%
Credit Agreement | SOFR | Minimum | Revolving Credit Facility | Variable Rate Component Two
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
Credit Agreement | SOFR | Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate			1.10%
Credit Agreement | SOFR | Maximum | Revolving Credit Facility | Variable Rate Component Two
Debt Instrument [Line Items]
Basis spread on variable rate			2.25%
Credit Agreement | Fed Funds Rate | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate			0.50%
Credit Agreement | Base Rate | Minimum | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate			0.25%
Credit Agreement | Base Rate | Maximum | Revolving Credit Facility
Debt Instrument [Line Items]
Basis spread on variable rate			1.25%
Credit Agreement | Term Loan Facility
Debt Instrument [Line Items]
Credit facility, maximum borrowing capacity			$ 250,000,000
Unamortized debt issuance cost							$ 1,900,000
Credit Agreement | Term Loan Facility | Year one
Debt Instrument [Line Items]
Interest rate, stated percentage			2.50%
Credit Agreement | Term Loan Facility | Year two
Debt Instrument [Line Items]
Interest rate, stated percentage			5.00%
Credit Agreement | Term Loan Facility | Year three
Debt Instrument [Line Items]
Interest rate, stated percentage			7.50%
Credit Agreement | Term Loan Facility | Year four
Debt Instrument [Line Items]
Interest rate, stated percentage			10.00%

v3.24.2.u1

Long-Term Debt, Net - Carrying Amount of Convertible Notes (Details) - USD ($) $ in Thousands	Jun. 30, 2024	Dec. 31, 2023
Debt Instrument [Line Items]
Total principal amount	$ 1,525,000	$ 1,525,000
Total unamortized debt discount	(22,485)	(25,752)
Long-term debt, excluding current maturities	1,502,515	1,499,248
Total carrying amount	1,502,515	1,499,248
Total fair value of outstanding notes	1,570,035	1,366,348
2027 Convertible Notes
Debt Instrument [Line Items]
Total principal amount	805,000	805,000
Total unamortized debt discount	(9,237)	(10,950)
Long-term debt, excluding current maturities	795,763	794,050
Total fair value of outstanding notes	$ 768,920	$ 695,826
Remaining amortization per period of debt discount (in years)	2 years 8 months 12 days	3 years 2 months 12 days
2028 Convertible Notes
Debt Instrument [Line Items]
Total principal amount	$ 720,000	$ 720,000
Total unamortized debt discount	(13,248)	(14,802)
Long-term debt, excluding current maturities	706,752	705,198
Total fair value of outstanding notes	$ 801,115	$ 670,522
Remaining amortization per period of debt discount (in years)	4 years 1 month 6 days	4 years 7 months 6 days

v3.24.2.u1

Long-Term Debt, Net - Components of Interest Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Debt Instrument [Line Items]
Total amortization of debt discount			$ 3,665	$ 3,652
Convertible Debt
Debt Instrument [Line Items]
Total coupon interest	$ 2,303	$ 2,303	4,606	4,642
Total amortization of debt discount	1,635	1,619	3,266	3,257
Total interest expense	3,938	3,922	7,872	7,899
2024 Convertible Notes | Convertible Debt
Debt Instrument [Line Items]
Total coupon interest	0	0	0	36
Total amortization of debt discount	0	0	0	24
Total interest expense	0	0	0	60
2027 Convertible Notes | Convertible Debt
Debt Instrument [Line Items]
Total coupon interest	503	503	1,006	1,006
Total amortization of debt discount	857	852	1,713	1,702
Total interest expense	$ 1,360	$ 1,355	$ 2,719	$ 2,708
Effective interest rates	0.70%	0.70%	0.70%	0.70%
2028 Convertible Notes | Convertible Debt
Debt Instrument [Line Items]
Total coupon interest	$ 1,800	$ 1,800	$ 3,600	$ 3,600
Total amortization of debt discount	778	767	1,553	1,531
Total interest expense	$ 2,578	$ 2,567	$ 5,153	$ 5,131
Effective interest rates	1.50%	1.50%	1.50%	1.50%

v3.24.2.u1

Share-based Compensation - Share-based Compensation Expense (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 9,471	$ 9,622	$ 19,345	$ 17,588
Stock options
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	3,894	4,190	8,193	7,645
RSUs, PSUs and ESPP
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	5,577	5,432	11,152	9,943
Research and development
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	2,568	3,670	5,913	6,771
Selling, general and administrative
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]
Total share-based compensation expense	$ 6,903	$ 5,952	$ 13,432	$ 10,817

v3.24.2.u1

Share-based Compensation - Narrative (Details) - USD ($) $ in Thousands	1 Months Ended	3 Months Ended		6 Months Ended
	Feb. 28, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock options granted (in shares)		100,000	400,000	600,000	1,600,000
2021 ESPP Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)		2,579,790		2,579,790
ESPP | 2021 ESPP Plan
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
ESPP purchase price of common stock, percent of market price	85.00%
Minimum employee subscription rate	1.00%
Maximum employee subscription rate	15.00%
Maximum contribution amount	$ 25
Purchase period (in months)	6 months
Shares issued (in shares)				24,432

v3.24.2.u1

Share-based Compensation - Assumptions Used in the Black-Scholes Model (Details)	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Schedule of Share-based Compensation Arrangements Valuation Inputs [Line Items]
Average expected term (in years)	5 years 4 months 24 days	5 years	5 years	4 years 9 months 18 days
Risk-free interest rate, minimum	4.64%	3.37%	3.80%	3.37%
Risk-free interest rate, maximum	4.70%	3.70%	4.70%	4.27%
Expected dividend yield	0.00%	0.00%	0.00%	0.00%
Minimum
Schedule of Share-based Compensation Arrangements Valuation Inputs [Line Items]
Expected volatility	40.01%	40.26%	40.01%	39.68%
Maximum
Schedule of Share-based Compensation Arrangements Valuation Inputs [Line Items]
Expected volatility	40.07%	40.72%	40.08%	40.72%

v3.24.2.u1

Share-based Compensation - Unrecognized Estimated Compensation Cost (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2024 USD ($)
Stock options
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 35,381
Remaining Weighted-Average Recognition Period (in years)	2 years 6 months 21 days
RSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 50,035
Remaining Weighted-Average Recognition Period (in years)	2 years 11 months 1 day
PSUs
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 9,577
Remaining Weighted-Average Recognition Period (in years)	2 years 18 days
ESPP
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Unrecognized Expense	$ 253
Remaining Weighted-Average Recognition Period (in years)	4 months 24 days

v3.24.2.u1

Stockholders' Equity - Narrative (Details) - USD ($) $ / shares in Units, $ in Millions	1 Months Ended			6 Months Ended		31 Months Ended
	Jun. 30, 2024	Nov. 30, 2023	Dec. 31, 2021	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Feb. 29, 2024	Dec. 31, 2023
Stockholders' equity (deficit) (textual)
Capital return program, authorized amount (in shares)			$ 750.0
Capital return program, purchase period			3 years
ASR
Stockholders' equity (deficit) (textual)
Stock repurchased		$ 250.0
ASR, payment to bank		$ 250.0
Stock repurchased (in shares)	1,100,000	5,500,000
Weighted-average price paid per share (usd per share)	$ 38.35
2021 Share Repurchase Program
Stockholders' equity (deficit) (textual)
Capital return program, purchase period						3 years
Stock repurchased (in shares)						19,100,000
Weighted-average price paid per share (usd per share)						$ 39.31
2024 Capital Return Program
Stockholders' equity (deficit) (textual)
Capital return program, authorized amount (in shares)							$ 750.0
Stock options
Stockholders' equity (deficit) (textual)
Number of shares of common stock issued as a result of stock option exercises (in shares)				475,828	240,223
Stock options weighted average exercise price (usd per share)				$ 23.90	$ 17.66
Net proceeds from stock options exercised				$ 11.4	$ 4.2
RSUs and PSUs
Stockholders' equity (deficit) (textual)
Stock issued during period, shares, restricted stock award, net of forfeitures (in shares)				331,693	318,181
Unit holders awards surrendered to pay for minimum withholding taxes (in shares)				88,825	70,733
Payments for tax withholding for restricted stock units vested, net				$ 6.5	$ 7.0
Stock options and restricted units
Stockholders' equity (deficit) (textual)
Outstanding stock options and restricted stock units (in shares)	8,000,000.0			8,000,000.0		8,000,000.0		7,800,000

v3.24.2.u1

Earnings per share - Computation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Numerator
Net income	$ 93,245	$ 74,754	$ 170,068	$ 114,369
Denominator
Weighted average common shares outstanding for basic earnings per share (in shares)	127,116	131,730	127,029	133,369
Dilutive potential common stock outstanding
Weighted average common shares outstanding for diluted earnings per share (in shares)	129,222	133,543	129,097	135,758
Earnings per share
Basic (usd per share)	$ 0.73	$ 0.57	$ 1.34	$ 0.86
Diluted (usd per share)	$ 0.72	$ 0.56	$ 1.32	$ 0.84
Convertible Notes
Dilutive potential common stock outstanding
Dilutive potential common stock outstanding (in shares)	0	0	0	116
Stock options
Dilutive potential common stock outstanding
Dilutive potential common stock outstanding (in shares)	1,762	1,656	1,669	1,910
RSUs, PSUs and ESPP
Dilutive potential common stock outstanding
Dilutive potential common stock outstanding (in shares)	344	157	399	363

v3.24.2.u1

Earnings per share - Antidilutive Securities (Details) - shares shares in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2024	Jun. 30, 2023	Jun. 30, 2024	Jun. 30, 2023
Earnings Per Share [Abstract]
Anti-dilutive shares excluded from per share calculation (in shares)	26.7	27.7	26.8	27.4

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