Fourth Quarter 2015
Earnings Call
February 29, 2016
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
future product development and regulatory events and goals, anticipated
clinical trial results and strategies, product collaborations, our business
intentions and financial estimates and results. 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-Pillar Strategy For Growth
2
ENHANZE™ Platform PEGPH201 Platform
n
CH2 CH2 OCH2 O
CH3
N
H
O
CH2 CH2 OO CH2
CH3
N
H
O
n
CH2 CH2 OO CH2
CH3
N
O H
n
n
CH2 CH2 OCH2 O
CH3
N
H
OCH2 CH2 OO CH2
CH3
N
O H
n
PEGylated form of rHuPH20
Licensing/Royalty Agreements Based On Proprietary Enzyme, rHuPH20
Investigational New Oncology DrugStudying pan-tumor potential
NOTE: 1) PEGPH20 is an investigational new drug Safety and efficacy profile have not been established; it is not currently available forcommercial distribution.
PFS Benefit and Hazard Ratio on Ventana
Platform Support Design of Phase 3 Study
33
AG 6.3 months
PAG 9.2 months
Halozyme Prototype CDx(Stage 1 202: presented ASCO 2015)
Ventana CDx(Stage1 202)
HR0.48 (0.16, 1.48)
HR0.39 (0.15, 1.01)
AG 4.3 months
PAG 9.2 months
0 2 4 6 8 10 12 14 0 2 4 6 8 10 12 14
Risk23 14 10 6 5 2 1 021 14 7 4 0 0 0 0
PAGAG
At 22 12 10 7 5 2 0 021 14 8 5 1 0 0 0
PAGAG
4
HALO-301|Pancreatic: Phase 3 Design
• Randomized (2:1 PAG:AG), double-blind, placebo-controlled, global
• Plan to initiate March 2016, approximately 200 sites in 20 countries
• Interim analysis when target number of PFS events reached
• PFS powered with a hazard ratio of 0.59 (to detect a 41% risk reduction
for progression)
PEGPH20 + ABRAXANE® +
gemcitabine (PAG)
ABRAXANE® + gemcitabine
(AG) + placebo
Metastatic
PDA
High-HA
patients
N=420
Primary Endpoints: Progression-Free Survival (PFS)Overall Survival (OS)
Studying Pan-Tumor Potential of PEGPH20
5
PEGPH20 Study
Preclinical Phase 1 Phase 2 Phase 3InCombination
withTumor
Gemcitabineand nab-Paclitaxel (Abraxane)
Pancreatic Cancer
Docetaxel(PRIMAL) NSCLC
Pembrolizumab(Keytruda®)
Gastric/ NSCLC
Eribulin(Halaven®)
BreastCancer(Eisai)
Investigator Sponsored Trials in Pancreatic Cancer: SWOG, UCSF, MSKCC
Partner TargetUS /
OUSPreclinical Phase 1 Phase 3 Approved
Herceptin SC OUS
Mabthera SC OUS
HYQVIA US
HYQVIA EU
Daratumumab --
Rivipansel--
Bococizumab--
Humira --
To be announced
--
ENHANZE: Our Novel Delivery Platform
6
ENHANZE: Our Novel Delivery Platform
Potential Benefits:
• Facilitate transition of IV therapies to
subcutaneous administration
• Reduce multiple injections
• Enable large volume of biologics to
be delivered subcutaneously
• Reduce time required for drug
administration
• Life cycle management, including
potential patent life extension
7
Roche Update: Herceptin SC and Mabthera SC1
8
1) Information provided during Roche investor update (Jan. 28, 2016).
4Q 2015 4Q 2014 % Change
Total Revenue $52.2 $30.4 72%
Royalty Revenue $9.5 $4.0 136%
Bulk rHuPH20 Sales $9.3 $6.0 55%
Hylenex® recombinant $4.3 $4.1 5%
Collaboration Revenue $29.1 $16.2 80%
Fourth Quarter 2015 Financial Highlights1
$ U.S. in Millions (unaudited)
NOTE: 1) Dollar amounts and percentages, as presented, are rounded.
9
4Q 2015 4Q 2014 % Change
Total Revenues $52.2 $30.4 72%
Total Operating Expense $46.8 $34.2 37%
Cost of Product Sales $8.4 $6.1 37%
R&D Expense $27.7 $19.7 41%
SG&A Expense $10.6 $8.4 27%
Net Income (Loss) $4.3 ($5.3) --
EPS $0.03 ($0.04) --
Cash and marketable securities $108.3 $135.6 --
Fourth Quarter 2015 Financial Highlights1
$ U.S. in Millions, except EPS (unaudited)
NOTE: 1) Dollar amounts and percentages, as presented, are rounded.
10
FY 2015 Guidance2
Total Revenues $135.1 $110 - $115
Operating Expense $162.5 $160 - $170
Cash Burn $27.3 $20 - $30
Cash and marketable securities $108.3 $105 - $115
Full Year 2015 Financial Highlights1
$ U.S. in Millions, except EPS
NOTE: 1) Dollar amounts and percentages, as presented, are rounded.
2) Revenue, Operating Expense and Cash Burn guidance provided on August 10, 2015 during Q2 2015 earnings
presentation, cash balance provided on November 9, 2015 during Q3 2015 earnings presentation.
11
2016 Financial Guidance
12
2016 Notes
Revenue $110M to $125M• No new ENHANZE
partnership revenue in 2016
guidance
Operating
Expenses$240M to $260M
• Phase 3 pancreatic cancer
study initiating in March
• Ongoing clinical programs in
NSCLC, gastric and breast
cancers
Cash Flow $35M to $55M
• Cash received in Jan 2016
o $25M Lilly upfront
o $150M Royalty Backed
Debt Financing
• Assumes $22M principal
repayment to Oxford/SVBYear-end Cash $140M to $160M
Fourth Quarter 2015
Earnings Call
February 29, 2016