UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
____________________________________________
FORM 8-K
_____________________________________________
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

			
 	 	 	
Date of Report (Date of Earliest Event Reported):	 	January 9, 2019	
________________________
HALOZYME THERAPEUTICS, INC.
(Exact name of registrant as specified in its charter)
________________________

				
Delaware	001-32335	 	88-0488686	
(State or other jurisdiction
of incorporation)	(Commission
File Number)	 	(IRS Employer
Identification No.)	

		
11388 Sorrento Valley Road, San Diego, California	92121	
(Address of principal executive offices)	(Zip Code)	

			
Registrant’s telephone number, including area code:	 	(858) 794-8889	
Not Applicable
(Former name or former address, if changed since last report)
  _________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§232.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

						
 	 	  	 	 	Emerging growth company
  o	
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o	

	

Item 7.01. Regulation FD Disclosure

On January 9, 2019, Halozyme Therapeutics, Inc., a Delaware corporation (“Halozyme”), issued a press release (the “Press Release”) to provide a corporate update on certain strategic programs and to provide financial guidance for 2019. A copy of the Press Release is attached hereto as Exhibit 99.1 and is incorporated herein by reference.

On January 9, 2019, Halozyme presented at the annual JP Morgan Healthcare Conference to provide a corporate update on certain strategic programs and to provide financial guidance for 2019. Attached hereto as Exhibit 99.2, and incorporated herein by reference, is a copy of certain slides used by Halozyme in making the presentation that are expected to be used in subsequent presentations to interested parties, including analysts and stockholders.
  
This information is being furnished pursuant to Item 7.01 of this Report and shall not be deemed to be “filed” for the purposes of Section 18 of the Securities and Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section and will not be incorporated by reference into any registration statement filed by Halozyme, under the Securities Act of 1933, as amended, unless specifically identified as being incorporated therein by reference. This Report will not be deemed an admission as to the materiality of any information in this Report that is being disclosed pursuant to Regulation FD.

Please refer to the Press Release attached hereto as Exhibit 99.1 and the slide deck attached as Exhibit 99.2 for a discussion of certain forward-looking statements included therein and the risks and uncertainties related thereto.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

Exhibit No.          Description

99.1             Halozyme Therapeutics, Inc. press release dated January 9, 2019

99.2             Halozyme Therapeutics, Inc. corporate update presentation dated January 9, 2019

 

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	

 	 	Halozyme Therapeutics, Inc.	
  	 	 	 	 	
January 9, 2019	 	By:	 	/s/ Harry J. Leonhardt	
 	 	 	 	Harry J. Leonhardt, Esq. 
	
 	 	 	 	Senior Vice President, General Counsel and Corporate Secretary	

EXHIBIT 99.1

FOR IMMEDIATE RELEASE

HALOZYME PROVIDES 2019 PIPELINE UPDATE AND FINANCIAL GUIDANCE AT 37 TH ANNUAL JP MORGAN HEALTHCARE CONFERENCE

–	Anticipated ENHANZE ® Partner Progress in 2019 Includes One FDA Approval, New Regulatory Submissions and a New Phase 3 Initiation	

–	Completed Enrollment in Phase 3 Metastatic Pancreas Cancer Study with Data Projected in Second Half of 2019	

SAN DIEGO, Jan. 9, 2019 - Halozyme Therapeutics, Inc. (NASDAQ: HALO), a biotechnology company developing novel oncology and drug-delivery therapies, today provided a pipeline update and announced its 2019 financial guidance at the 37 th annual JP Morgan Healthcare Conference.

“Looking ahead, our ENHANZE business is gaining momentum with key product development milestones expected this year, including potential FDA approval of a subcutaneous formulation of Herceptin ® and regulatory submissions for the subcutaneous formulation of Darzalex ® each representing important near-term catalysts,” said Dr. Helen Torley, president and chief executive officer. “In our oncology business, HALO-301 has completed enrollment and topline results are projected in the second half of 2019.”

Halozyme provided an update on the 2019 outlook for its ENHANZE franchise. The company expects to make meaningful progress this year toward its projection of the potential for approximately $1 billion in royalty revenue in 2027. During the first quarter, FDA action is expected on the Biologics License Application (BLA) filed by ENHANZE partner Genentech, a member of the Roche Group, for the subcutaneous (SC) formulation of trastuzumab (Herceptin ® ). In the second half of 2019, ENHANZE partner Janssen Biotech, Inc. anticipates filing for approval of the SC formulation of its multiple myeloma drug daratumumab (Darzalex ® ). Also in the second half, Halozyme expects a phase 3 study will be initiated by a partner for an undisclosed target.

By the end of 2019, the company expects three ENHANZE programs to be in phase 3 studies and to have nine active phase 1 programs in addition to its three currently marketed products. This accelerating partner activity supports the projection of the potential for approximately $1 billion in royalty revenue in 2027. Additionally, potential lifetime milestone payments associated with existing ENHANZE partnership programs in development are projected to be $1 billion, with $225 million to $300 million in revenues projected between 2019 and 2021.

The company also provided an update on its late stage targeted oncology asset PEGPH20. Enrollment in HALO-301, the company’s phase 3 study evaluating PEGPH20 in metastatic pancreas cancer, was completed at the end of 2018 with approximately 500 subjects enrolled. The company projects the study will achieve its target of 330 OS (overall survival) events between August and November of 2019. Based on this timeline, the company projects topline results will be available in the second half of 2019.

Halozyme and its partners continue to explore the pan-tumor potential of PEGPH20. This includes ongoing phase 1b studies in pancreas cancer, gastric cancer, gall bladder cancer and cholangiocarcinoma.

2019 Financial Guidance

The company also provided financial guidance for 2019:

•	Net revenue of $175 million to $185 million , excluding revenue from any new ENHANZE global collaboration and licensing agreements.	

•	Operating expenses of $265 million to $275 million , or $225 million to $235 million excluding an expected increase in cost of goods sold. Excluding the cost of goods sold the modest increase in expenses is driven by ENHANZE partner support, and support of the potential commercialization of PEGPH20.	

•	Operating cash burn of $75 million to $85 million.	

•	Debt repayment of approximately $90 million.	

•	Year-end cash balance of $180 million to $190 million.	

Table 1. 2019 Financial Guidance

	
		
 	Guidance Range	
Net Revenue	$175 million to $185 million	
Operating Expenses	$265 million to $275 million	
Operating Expenses (excl. COGS)	$225 million to $235 million	
Operating Cash Burn	$75 million to $85 million	
Debt Repayment	~$90 million	
Year-end Cash Balance	$180 million to $190 million	

The company plans to report fourth quarter and full year 2018 financial results on February 21, 2019.

A replay of Dr. Torley's presentation at the conference today can be accessed for the next 90 days via the "Investors" section of www.halozyme.com. Also, a copy of the presentation made today was filed with the Securities and Exchange Commission as part of a Form 8-K that can also be accessed via the "Investors" section of www.halozyme.com.

About Halozyme
Halozyme Therapeutics is a biotechnology company focused on developing and commercializing novel oncology therapies that target the tumor microenvironment. Halozyme's lead proprietary program, investigational drug pegvorhyaluronidase alfa (PEGPH20), applies a unique approach to targeting solid tumors, allowing increased access of co-administered cancer drug therapies to the tumor in animal models. PEGPH20 is currently in development for the treatment of several cancers and has the potential to be used in combination with different types of cancer therapies. In addition to its proprietary product portfolio, Halozyme has established value-driving partnerships with leading pharmaceutical companies including Roche, Baxalta, Pfizer, Janssen, AbbVie, Lilly, Bristol-Myers Squibb and Alexion for its ENHANZE® drug delivery technology. Halozyme is headquartered in San Diego. For more information visit www.halozyme.com.

Safe Harbor Statement
In addition to historical information, the statements set forth above include forward-looking statements concerning the Company's future expectations and plans for 2019 (including, without limitation, statements concerning the Company's future expectations and plans for the development and commercialization of product candidates, including timing of clinical trial results announcements and future development and commercial activities of our ENHANZE collaboration partners, the potential benefits and attributes of such product candidates (including statements concerning the possible activity, benefits and attributes of PEGPH20, the possible method of action of PEGPH20, its potential application to improve cancer therapies and statements concerning future actions relating to the development of PEGPH20).The forward looking statements also include the Company's expected financial outlook, including expectations for royalty revenue growth in 2019 and beyond. These forward looking statements involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The forward-looking statements are typically, but not always, identified through use of the words "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures and costs, unexpected fluctuations or changes in revenues from collaborators or product sales, unexpected clinical trial delays or results, including enrollment delays, unexpected delays in the development activities of our ENHANZE collaboration partners, unexpected results or delays in development and regulatory review, regulatory approval requirements, unexpected adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's most recent Annual and Quarterly Reports filed with the Securities and Exchange Commission.

Contact:
Al Kildani
Vice President, Investor Relations and Corporate Communications
858-704-8122
ir@halozyme.com

37th Annual J.P. Morgan Healthcare Conference Building a Premier Oncology Biotech Dr. Helen Torley, President and CEO January 9, 2019

 

Forward-Looking Statements All of the statements in this presentation that are not statements of historical facts constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Examples of such statements include possible activity, benefits and attributes of PEGPH20, future product development and regulatory events and goals, anticipated clinical trial results and strategies, product collaborations, our business intentions and financial estimates and results, including projected revenue amounts. These statements are based upon management’s current plans and expectations and are subject to a number of risks and uncertainties which could cause actual results to differ materially from such statements. A discussion of the risks and uncertainties that can affect these statements is set forth in the Company’s annual and quarterly reports filed from time to time with the Securities and Exchange Commission under the heading “Risk Factors.” The Company disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise. 1

 

Two Engines for Growth ENHANZE® PEGPH20 Proven ‘IV to Sub Q’ Late Stage Targeted Partnering Platform Oncology Asset Phase 3 Data Accelerating Partner Readout Currently Investment for Approvals Projected in 2H 2019 High Potential: Potential ~$1B Global ~$1B Annual Royalty Pancreas Indication Revenue Projection in 2027 with Additional Pan- ~$1B in Lifetime Milestones tumor Potential 2

 

Significant Value Creating Events in 2018 ENHANZE® PEGPH20 • Daratumumab SC trials targeting ~2,000 • HALO-301 enrollment completed multiple myeloma patients now initiated • Agreement reached with FDA on • De-risking progress to Phase III primary endpoint: Overall Survival – Darzalex® – Perjeta ® /Herceptin ® • Continue to expand potential – 6 new targets in Phase 1 – Roche agreement expansion: 3 additional targets Capabilities FINANCIAL • Acceleration of time to Phase 1 start: • Strong cash balance exiting 2018: 6 months $340M-350M • Expanded support to 2 new ENHANZE partners 3

 

ENHANZE® 4

 

ENHANZE® Offers Four Potential Paths for Differentiation and Value Creation for Partners Reduced Treatment Burden 1 and Healthcare Costs Darzalex® ALXN 1210 2 Potential for Competitive Differentiation BMS I/O Portfolio 3 New Intellectual Property and Exclusivity Darzalex® Changing U.S. Reimbursement OPDIVO® 4 and Care Landscape 5

 

ENHANZE ® High-Growth Business 8 Agreements signed to date: Bristol-Myers Squibb Roche (Genentech), Baxalta, Agreement Terms Pfizer, Janssen, Eli Lilly, Abbvie Number of 11 BMS and Alexion Targets Upfront $105M Milestones/ 3 Approved Products $160M Target 8 Targets in development today Royalties Mid-single digit >20 Target slots available to current average partners across all agreements 6

 

Near Term Catalysts: Project 3 Potential Blockbuster Programs in Phase III in 2019 2017 2018 2019 6 Products 11 Products 15 Products(1) 3 1 2 3 3 3 2 6 9 Approved and Commercialized Phase III 3 Commercialized Products Phase I 3 Products in Phase III 1 Projected by year-end as of January 9, 2019 7

 

Three Products Successfully Commercialized in Global Markets US ROW SC Formulation of Herceptin® FDA Action March 2019 8

 

ENHANZE® Development Pipeline Partner Product/Target Janssen / Darzalex® Phase III in Undisclosed Undisclosed 2019 Completing Ongoing Initiating BMS CD-73 OPDIVO® ALXN1210 Phase I in 2019 Undisclosed Undisclosed Undisclosed PLUS 4 Potential New Phase I Starts in 2019 9

 

Daratumumab IV: Blockbuster Multiple Myeloma Treatment Early Launch Data Compares Analyst Estimates for Darzalex® Favorably with Other Multiple Myeloma Drug Launches ($ Millions) ($ Millions) Darzalex® 8000 2000 Empliciti® 7000 Kyprolis® 6000 1500 Ninlaro® Pomalyst® 5000 Revlimid® 4000 1000 3000 2000 500 1000 0 0 2018 2019 2020 2021 2022 2023 2024 2025 1234Year 1 2 3 Source: Analyst estimates via Nasdaq IR Insight Source: Bloomberg, company press releases • Sell-side analysts estimate >$7 billion in sales by 2025 • IV therapy, administered by infusion, initially as weekly regimen 10

 

Daratumumab SC: Potential Regulatory Submissions in 2H 2019 Timeline • Janssen anticipates filing regulatory submissions in H2 2019(1) Potential Benefits of Subcutaneous Formulation(2) • Faster infusion time (3-5 minutes)(3) • Well tolerated with fewer infusion related reactions (IRRs) than with IV(4) 4 Ongoing Phase 3 Trials(2) with ORR = overall response rate; PR = partial response; VGPR = very good partial response ® ENHANZE Median follow-up(4) PAVO Study: an open-label, multicenter, phase 1b clinical trial conducted patients with relapsed/refractory multiple myeloma (n=25) to evaluate a subcutaneous (SC) formulation of DARA with ENHANZE® 1 Johnson and Johnson Pharmaceutical Business Review (September 13, 2018) 2 Genmab corporate presentations (Jeffries November 2018, R&D Update and 2018 ASH Data Review December 2018) 3 Subcutaneous Delivery of Daratumumab in Patients with Relapsed or Refractory Multiple Myeloma Pavo, an Open-Label, Multicenter, Dose Escalation Phase 1b Study (Blood 2017) 4 Subcutaneous Daratumumab in Patients With Relapsed or Refractory Multiple Myeloma: Part 2 Safety and Efficacy Update of the Open-label, Multicenter, Phase 1b Study (PAVO) Ajai Chari et al (ASH December 2018) 11

 

Perjeta®/Herceptin® Fixed Dose Combination with ENHANZE®: Potential Regulatory Submissions 2020 Potential Opportunity ® • PERJETA indicated for use Value proposition of Perjeta®/Herceptin® with Herceptin and Fixed Dose SC with ENHANZE (3) chemotherapy for adjuvant treatment of patients with 3 HER2+ early-stage breast cancer (EBC) at high risk of recurrence • Target population size(2): ~72,000 in US and EU 5 • Strong IV adoption since launch: ~40% share in high risk early breast cancer(1) 1 Roche nine-month 2018 sales presentation and investor conference call (October 17, 2018) 2 Roche presentation, Exane BNP Paribas Conference, June 2017. Datamonitor and internal estimates, US & EU5; Target population for Herceptin in adjuvant breast cancer (US & EU5) 12 3 Roche Virtual Late Stage Pipeline Event 2018 presentation (September 18, 2019)

 

Increasing Commercialization Activities to Support Expected ENHANZE® Launches Facilitating Rapid Global Commercialization by Partners • PH20 API: expect to deliver 1.8 Million doses(1) in response to partner orders in 2019 • Highest demand in our history • Support regulatory submissions in ~50 countries(1) and provide rapid response to health authority questions 1 Halozyme Therapeutics. Inc. internal estimate 13

 

ENHANZE®: ~$1B Royalty Revenue Potential in 2027 2019-2021 Potential Cumulative ~$1 Billion Milestones = $225M-$300M All other partner products Royalties derived from products in phase 3 (2019) Herceptin, Rituximab, HyQvia 2018 2027 Projection based on approved products and assumes global approval and launches for 7 additional products in multiple indications. Includes projections for subcutaneous versions of targets not currently approved or commercially available. Innovator revenues based on Bloomberg analyst projections, when available. Conversion rates based on Halozyme internal projections. Royalty revenue projection includes targets selected but not yet disclosed. Projected royalty revenue is not risk–adjusted. 14

 

ENHANZE®: Royalties Already Exceed ENHANZE-only Operating Expenses 2019-2021 Potential Cumulative ~$1 Billion Milestones = $225M-$300M All other partner products Royalties derived from products in phase 3 (2019) ENHANZE-only Operating Expense Herceptin, Rituximab, HyQvia 2018 2027 Projection based on approved products and assumes global approval and launches for 7 additional products in multiple indications. Includes projections for subcutaneous versions of targets not currently approved or commercially available. Innovator revenues based on Bloomberg analyst projections, when available. Conversion rates based on Halozyme internal projections. Royalty revenue projection includes targets selected but not yet disclosed. Projected royalty revenue is not risk–adjusted. Operating expense represents pro-forma expenses that exclude COGS, and all costs related to Hylenex and PEGPH20. 15

 

Accelerating ENHANZE ® Growth Daratumumab Potential Approval 12 Targets in SC Regulatory for Herceptin BLA Development Submissions in 2H Existing in March 2019 in 2019 Partnerships 2019 Potential in Oncology, Pool of Potential New Rare Diseases, Blood Partners and Targets Disorders, Immunology, New Remains Sizable Partnerships CNS and more 16

 

PEGPH20 17

 

Tumor HA Overexpression Associated with Shorter Survival in Pancreas Cancer Retrospective Evaluation of Pancreatic Cancer Survival in ~50 Patients(1) HA-Low Median Survival: 24.3 months HA-High Median Survival: 9.3 months H.R. 2.6 p=0.037 1 Whatcott et al: Clin Cancer Res 2015, 21:3561-3568. HA staining by HABP. Scoring algorithm assessed percent staining and intensity. 18

 

PEGPH20 Targets Hyaluronan (HA) in the Tumor Microenvironment In HA-High Tumor Animal Models, Removal of HA by PEGPH20 Demonstrated to: Decrease Decompress Increase Increase Increase intratumoral vasculature perfusion access for access for pressure therapeutics immune cells PEGPH20 19

 

Proprietary Test Developed in Phase II to Identify HA- High Patients for Phase III • Partnered with Ventana for Analysis of OS in HA-High, Stage II HALO 202(1) Companion Diagnostic • Phase II Study HALO 202 key to develop Companion Diagnostic • 279 1L metastatic PDA • PEGPH20 plus Abraxane® and Gemcitabine versus Abraxane® and Gemcitabine alone • HA all-comers population K-M Estimate • Stage 1: identification of HA algorithm/cut point • >50% score =HA-high • Stage II: validation of cut-point/ algorithm for Phase III • 37 of 133 patients HA-high 1 HALO 202: Randomized Phase II Study of PEGPH20 Plus Nab-Paclitaxel/Gemcitabine Versus Nab- Paclitaxel/ Gemcitabine in Patients With Untreated, Metastatic Pancreatic Ductal Adenocarcinoma 20 Journal of Clinical Oncology, Hingorani et al (December 2017)

 

Pancreas Cancer HALO-301: Enrollment Complete with Approximately 500 Patients Global Phase 3 Trial Now Fully Enrolled: ~500 Patients PEGPH20 + ABRAXANE® 1L Metastatic + gemcitabine (PAG) PDA Primary Endpoint: High-HA • Overall Survival (OS) patients ABRAXANE® + gemcitabine N=~500 (AG) + placebo Project to achieve target number of OS events between August and November 2019, triggering final data cleaning and analysis 21

 

Final Analysis Plan for HALO-301: Single Primary Endpoint of Overall Survival • Fixed sample size with target number of OS events: 330 • Mature dataset supporting best test of PEGPH20 – All patient follow up of at least 8.5 months – <10% patients less than 13 months • Well powered trial – 93% power for HR = 0.67 – Minimal observable difference HR = 0.795 (e.g. median difference of 2.2 months) 22

 

~$1B Potential Opportunity in Pancreas Cancer 65,000 Annual Diagnosed Metastatic Pancreatic Ductal Adenocarcinoma (PDA) U.S. and EU 5(1) ~$1B ~$1B Potential Global Sales Opportunity by 2027 in HA-High 25,000 Metastatic PDA(3) Estimated Number of HA-High Patients 35–40% of Population(2) 1 SEER 18 2006-2012, Globocan 2012, DRG Epidemiology data. 2 Halozyme estimates for HA-High %. 23 3 DRG Epidemiology data, Halozyme internal estimates.

 

Ongoing Studies Evaluating Pan-tumor Potential of PEGPH20 Tumor Stage Status Pancreas Cancer, Gastric Cancer Gall Bladder Cancer, Cholangiocarcinoma 24

 

2019 Financial Guidance 2018 Guidance 2019 Guidance Drivers (as of 11/5/18) • YoY royalty growth projected flat Net • API orders increasing to support ENHANZE commercial $150M to $160M $175M to $185M Revenue partners and launch readiness for Darzalex® • Does not include new ENHANZE deals Operating Expenses $220M to $230M $265M to $275M • Increasing COGS related to ENHANZE commercial partners and launch readiness for Darzalex® Operating Expenses $210M to $220M $225M to $235M • Modest increase for ENHANZE partner support and to (excl. COGs) support potential commercialization of PEGPH20 Operating Cash Burn ($50M) to ($60M) ($75M) to ($85M) • Excludes repayment of debt principal Debt Repayment $95M ~$90M • Project full repayment of royalty-backed debt Q1 2020 Year-end Cash $340M to $350M $180M to $190M 25

 

Outlook • Growing ENHANZE momentum – ~$1 billion in annual royalty revenue potential by 2027 – Multiple near-term catalysts in a high margin business • Each pillar offers strong potential upside – ENHANZE: New deals plus up to $1 billion in lifetime milestones – PEGPH20: ~$1 billion global sales opportunity in pancreas cancer • Each pillar has been incrementally de-risked: – ENHANZE: 3 approved products, Herceptin® SC upcoming FDA action and Darzalex® SC regulatory submissions in 2H 2019 – PEGPH20: HALO-301 fully enrolled • Expect to end 2019 in strong financial position – Projected post-301 cash balance provides operational flexibility 26

 

37th Annual J.P. Morgan Healthcare Conference Building a Premier Oncology Biotech Dr. Helen Torley, President and CEO January 9, 2019