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Achieved a record $1.4 billion in total revenue for 2025, a 38% increase driven by a 52% surge in royalty revenue from core blockbuster franchises.
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Transformed the corporate profile from two to four drug delivery technologies through the acquisitions of Elektrofi (Hypercon) and Surf Bio, extending IP protection into the mid-2040s.
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Performance was anchored by DARZALEX FASPRO, which now holds a 97% share of sales in the U.S., and PHESGO, which surpassed its initial 50% conversion target to reach 54%.
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Expanded the ENHANZE portfolio to 10 global blockbuster opportunities following the regulatory approvals of RYBREVANT SC in the U.S., Japan, and China.
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Strategic positioning now emphasizes a ‘one-stop shop’ model for biopharma, offering solutions across a wide range of modalities, including monoclonal antibodies, ADCs, and nucleic acids.
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Management attributes the success of newer launches like OCREVUS ZUNOVO to their ability to overcome IV infusion capacity constraints, with 50% of U.S. patients being treatment-naive.
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The acquisition of Surf Bio provides a second hyperconcentration technology, with clinical readiness targeted for the 2027 to 2028 timeframe.
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Reiterated 2026 revenue guidance of $1.71 billion to $1.81 billion, representing 22% to 30% growth, and projected royalty revenue growth of 30% to 35% driven by DARZALEX SC, PHESGO, and VYVGART Hytrulo.
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Projecting 6 new ENHANZE programs and 2 Hypercon programs to enter Phase I in 2026, nearly doubling the total portfolio to 36 products by 2028.
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Anticipates signing at least 3 new licensing agreements in 2026, specifically targeting 1-3 ENHANZE and 1-2 Hypercon collaborations.
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Management projects that Hypercon launches will result in approximately $1 billion in royalty revenue within five years of the first launches for this technology in the mid-2030s.
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Financial strategy includes de-levering to below 1x net debt to EBITDA by the end of 2026 while maintaining capacity for strategic M&A.
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Recognized a $285 million acquired IPR&D expense in Q4 2025 related to the Surf Bio acquisition, impacting GAAP and non-GAAP EPS by approximately $2.30.
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Litigation expenses and transaction-related costs for recent acquisitions contributed to a year-over-year increase in SG&A to $207.1 million.
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Q1 2026 royalty revenue is projected to be 5% to 10% lower than Q4 2025 due to annual contractual rate resets, with sequential growth expected thereafter.
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Management flagged ongoing litigation against Merck regarding patent infringement, noting that discovery is underway for the Merck-Alteogen agreement.
