Good morning. My name is Rob, and I will be your conference operator today. At this time, I would like to welcome everyone to the Halozyme conference call and webcast. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question-and-answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again, press star one. Thank you. Dawn Schottlandt, you may begin your conference.
Thank you, and good morning, everyone. Thank you for joining our call today to discuss Halozyme's acquisition of Antares Pharma. Joining me today is Dr. Helen Torley, Halozyme's President and Chief Executive Officer. Nicole LaBrosse, Halozyme's Chief Financial Officer, is also joining for the question-and-answer session. As a reminder, this call is being recorded, and a press release and slide presentation regarding today's news are available on the investor relations section of Halozyme and Antares respective websites. This communication is not intended to constitute an offer to buy or sell, or the solicitation of an offer to buy any securities or solicitation of any vote or approval. Antares intends to file a Schedule TO with the SEC regarding the proposed transaction that will be mailed to Antares shareholders. You should review materials filed with the SEC carefully as they will include important information regarding the proposed transaction.
On today's call, Helen will first review Halozyme's strategic priorities and the transaction's rationale, terms, funding, and timing. She will then give an overview of Antares' vision, platform, and business before we open the call for your questions. With that, I'll now turn the call over to Helen.
Thank you, Dawn. Good morning, everyone, and thank you for joining us today. I know I speak for our entire Halozyme board of directors and management team when I say we could not be more thrilled to talk with you today about our announcement regarding our agreement to acquire Antares Pharma, whose business consists of a best-in-class, differentiated royalty revenue-generating auto-injector platform that offers broad licensing opportunity and a commercial business with three proprietary products. Let's move to slide 4. I'm excited about what this transaction means for the future of Halozyme, our combined team members, our shareholders, and most importantly, our patients. Halozyme has established a leadership position with our enhanced co-formulation technology, which enables subcutaneous delivery of important treatments for patients. As you will note, this transaction is fully aligned with our capital allocation priorities for 2022, which remain unchanged.
As we have previously indicated, our three primary priorities are to invest in maximizing enhanced revenue growth and durability, to continue to return capital to our shareholders through share repurchases, and at the center, to seek to acquire a platform technology where Halozyme can operationalize and create additional value while also adding to and further extending our revenue durability. Antares is the perfect partner for this and fulfills each of our business development criteria. Antares brings a highly licensable proprietary auto-injector technology that can be broadly applied across a spectrum of disease areas and drug and biologic treatments. The transaction is accretive to Halozyme's revenue and non-GAAP earnings post-close, and we have the opportunity to unlock substantial upside. Finally, there is minimal investment required to accelerate revenue growth and durability.
On slide five, I'll now provide an overview of Antares and why we are so excited to announce this combination. Antares' businesses consist of both commercial and royalty revenue streams. Its business comprises three proprietary commercial products, XYOSTED, TLANDO, and NOCDURNA, as well as its best-in-class differentiated auto-injector platform that offers a plethora of licensing opportunities. In fiscal 2021, Antares generated $184 million in total revenue, a 23% increase versus the prior year, with nearly $37 million in cash from operations. Gross margins were very healthy at 63% for fiscal 2021, with the proprietary products representing approximately 43% of total revenue. Moving to slide 6, this provides an overview of the transaction terms, financing, and timing.
Halozyme will commence a cash tender offer to acquire all of the outstanding shares of Antares for $5.60 per share. The transaction is valued at approximately $960 million and was unanimously approved by the boards of directors of both companies. The acquisition is not subject to any financing conditions. Halozyme will use its existing cash on hand and new sources of debt to finance the transaction. At the time of close, Halozyme expects its leverage ratio to be less than 3.5 times net debt to EBITDA, with this ratio declining significantly over the quarters post-close. The transaction is expected to close in the first half of 2022 and is subject to the satisfaction of customary closing conditions and applicable regulatory approvals.
Let me move now to an overview of the many compelling reasons for the transaction, which are shown on slide 7. From a financial perspective, this transaction is immediately accretive to Halozyme's 2022 revenue and non-GAAP earnings and will accelerate our top and our bottom-line growth through 2027 and beyond. It will increase and extend our revenue durability through 2030, and it will improve our cash flow generation to support future capital allocation priorities. Strategically, Antares brings multiple growth drivers that can extend beyond 2027. These drivers include a partnership-led business based on its proprietary auto-injector technology and a commercially successful business of Testosterone Replacement Therapy or TRT products.
The Antares drug delivery technology shares many important similarities to Halozyme's enhanced technology in that there are numerous licensing opportunities for the auto-injector product, where the combined company can provide support and expertise without requiring a high level of investment to advance and grow the business. By bringing our two great companies together, we will accelerate our strategy to create a leading drug delivery and specialty product company to become the partner of choice for the biopharma industry and to deliver enhanced value to shareholders over the long term. As is highlighted on slide 8, the combination of Halozyme plus Antares is truly one in which 1 + 1 equals 3 or indeed more.
Further, the addition of Antares with the best-in-class auto-injector platform and the specialty commercial business augments our strategy, further strengthens our position as a leading drug delivery company, and extends our business to include specialty products. This transaction fits exceptionally well with our previously discussed strategic priorities and provides substantial financial growth potential with disruptive solutions to significantly improve patient experience and outcomes for both emerging and established therapies. Halozyme is ideally positioned to leverage Antares' value proposition with our strong balance sheet, our established industry relationships, and our business development experience and track record for success. I want to thank Bob Apple and his talented team for their outstanding achievement in building Antares to where it is today and for the effort they have put forth regarding this transaction.
We have long admired the Antares team and look forward to combining forces to work together to transform the lives of patients. I'll move now to slide 9 and provide a bit more color regarding Antares' proprietary, widely licensable drug delivery platforms. With decades of experience in device development engineering, Antares' in-house development team specializes in creating custom-designed drug delivery devices that are tailored to the patient and the therapeutic need. As you'll note on the slide, the breadth of Antares' platform is extensive, spanning auto-injectors, multiple dose pens, and variable dosing delivery devices. An example of this can be found in Teva's generic EpiPen, which contributed approximately $70 million in revenue and device sales to Antares in fiscal 2021, with total prescriptions for Teva's generic EpiPen increasing year-over-year.
The broad applicability of Antares' auto-injector platform is well demonstrated by the number of biopharma partners who are already licensing the technology, as is shown on slide 10. In addition to Teva, current applications of this technology are in production with partners such as Idorsia and AMAG. What is so exciting is that Antares' widely licensable product suite can be broadly applied across a spectrum of disease areas and for small and large molecules. I'll move now to slide 11. The transaction will join together the highly complementary businesses of Halozyme and Antares. Halozyme is bringing our commercially validated, enhanced platform technology, our world-class partners, and the potential to support rapid subcutaneous drug delivery when used in conjunction with the Antares auto-injector device.
Importantly, there's also a high likelihood of extending to high viscosity and high volume auto-injector devices up to 5 mL when supported by Halozyme's extensive infrastructure and our enhanced platform technology. Antares will bring to Halozyme its industry-leading auto-injector platforms, domain expertise, and broad technology capabilities with strong intellectual property protection. As one company, Halozyme and Antares will become the partner of choice for pharma and biotech companies looking for convenient, patient-friendly subcutaneous drug and biologic administration. Let me move now to slide 12. Earlier, I'd mentioned that Antares' commercial business currently contains three proprietary products, XYOSTED, TLANDO, and NOCDURNA. Post-close, the combined company with the established commercial infrastructure will be focused on expanding patient and prescriber adoption of these three drugs. This is the focus of the planned 108 sales representatives who are targeting approximately 16,000 urologists, endocrinologists, and primary care physicians today.
Currently with this footprint, Antares has approximately 95% of the top three decile testosterone prescribers covered. Moving now to slide 13. Antares' flagship product, asset, which is XYOSTED, is the first and only weekly subcutaneous auto-injector testosterone replacement therapy or TRT. Total testosterone prescriptions are large and growing, with 8 million total prescriptions in 2021, growing at the rate of approximately 5% year-over-year. XYOSTED is one of Antares' leading growth drivers, with sales of over $62 million in fiscal 2021. XYOSTED fourth quarter total prescriptions increased year-over-year by approximately 34% and increased 45% for the entire year. The prescriber base for XYOSTED is reported by Antares to now exceed 11,000 physicians.
This important physician base is expected to continue to drive growth in patient adoption of XYOSTED, which we project has the potential to hit weekly highs in numbers of prescriptions in 2022. I'll move now to slide 14 and discuss another exciting therapy for testosterone replacement, which is called TLANDO. As Antares previously announced on March 29, the FDA approved TLANDO, a twice-daily oral treatment for TRT in adult males for conditions associated with the deficiency of endogenous testosterone, also known as hypogonadism. We believe TLANDO's oral medication, which is dosed twice per day and requires no titration, differentiates it from other treatment options. Antares' recently expanded commercial sales organization will leverage its relationships with urologists, endocrinologists, and high-prescribing primary care physicians to drive adoption of TLANDO. With the addition of TLANDO, Antares will be the only company offering two branded patient-convenient options for the treatment of low testosterone.
The commercial launch of TLANDO is expected during the second quarter of this year. Post-close, the combined entity will continue to focus on achieving strong market access for TLANDO, which is anticipated over time to be similar to that of XYOSTED, which is currently covered for approximately 75% of all commercial lives. On slide 15, you can see that the acquisition of Antares is projected to be immediately accretive to Halozyme's already strong revenue and earnings projection to 2027 and beyond. We expect to build on Antares' core auto-injector platform technology and capabilities to drive incremental, durable revenue opportunities with additional intellectual property protections for Antares technology in place beyond 2030.
In 2027 and beyond, we expect Antares' multiple growth drivers will be highly additive, coming in the form of its growing TRT business, revenues from partner products, and new partnerships with companies seeking subcutaneous administration for both small and large molecule products. Let me conclude on slide 16. I'm confident in the success of the combination of Halozyme and Antares. As you'll recall, in the past, I established that a key criteria for our M&A was to identify a de-risk platform. I'm delighted that we have found this with Antares, with their differentiated de-risk auto-injector platform and with multiple approved commercial products. I'm confident this combination will result in Halozyme extending our position as a leading drug delivery company and diversify our revenues with the branded testosterone products of Antares.
For employees of both companies, we believe this combination will also provide additional growth and advancement opportunities over the years to come. I look forward to continuing to work with our best-in-class Halozyme team and to welcoming the exceptional members of the Antares team. I am delighted that the combination of our two great companies will be immediately revenue and non-GAAP EPS accretive, with multiple drivers to augment growth to 2027 and well beyond. With that, I'd now like to hand the call back to the operator and open it up for a question and answer. Thank you.
At this time, I would like to remind everyone, in order to ask a question, press star then 1 on your telephone keypad. Your first question comes from the line of Michael DiFiore from Evercore ISI. Your line is open.
Hi, guys. Thanks for taking my question and congrats on the deal. Just two questions from me. If you give us any idea of the synergies involved in this transaction. In terms of the IP, I know, you know, you said that your with the auto-injector, you could, you know, pretty much formulate your products up to 5 mL. I'm trying to get a sense of the co-formulation patent opportunity there. If combining your products with Antares' injection products somehow extends IP. I guess number 3 is why the reason to, you know, go the commercial route?
I think investors were expecting this whole time that you would perhaps buy a company that really was more in line with your traditional business. I'm just kind of curious why the decision now to become a commercial company. Thank you.
I have three great questions, let me start with the synergies. What we know about Antares is that our businesses are very complementary with different skill sets that they have both with the auto-injector technology development team as well as the commercial team. We expect synergies to be very modest. This really is a story about the addition in terms of the revenue and the earnings growth rather than synergies that we see are going to happen. Let me just talk about the combination and I love the focus on the 5 mL, which we're very excited about. Now, not all products and biologics will be able to be used in a 5 mL.
I would think about this, Mike, more as a new opportunity as we approach people if the product can fit in 5 mL. There certainly is an opportunity, depending on how the auto-injector itself is created to get IP. There is opportunity depending on how ENHANZE works with the drug that will be used in the 5 mL auto-injector to get co-formulation IP. It is a great point that it does actually provide even more opportunities for getting more extended IP. I'll use an example where for the XYOSTED product with its auto-injector, there's IP protections out to 2038, as an example, based on the innovation that comes with the Antares devices.
Definitely a core area for us, but I wouldn't want you to assume that we'll be able to take all of our current products and move them. It all depends on those that can fit into and be formulated into a 5 mL auto-injector. We do see opportunity outside our current portfolio, obviously, and that's where we're going to go to grow and further expand our partnerships and collaborations. Let me just address the third question, Neil. If we go back to the conversations we've had, we've always said our goals with acquisition was to find a de-risk platform and one where we'd be able to add revenue in the near term and extend the durability of our revenue. As we looked around, this Antares is a terrific fit for all of those.
While we never specifically commented on commercial, it's always been in our evaluation set, particularly because we are looking to add to and extend the durability of our revenue. Just as a reminder, you know, my background before coming to Halozyme was very much Chief Commercial Officer at Onyx and Head of Business Units at Amgen. Leading the commercial organization is something that I'm very excited to do again. We feel very comfortable with bringing that in. I think the most important message is it's a great fit for exactly the M&A strategic priorities we communicated.
Got it. Thanks so much.
Your next question comes from the line of Charles Duncan from Cantor Fitzgerald. Your line is open.
Hey, good morning, Helen and team. First of all, congratulations on identifying and executing this strategic move this morning. Thank you for taking our questions. I guess I wanted to follow up to the last question and ask it a different way. That is when you think about the upside potential and considering Antares, would if you had to choose one, would it be the commercial side of the business, or would it be the drug delivery platform that really compelled you to consider this acquisition?
This is a great question, Charles, because you know both of them are attractive high-growth businesses. I would say we probably came across Antares more when we started looking at drug delivery and for best-in-class auto-injector technologies. But the more we looked at it, we recognized that the application of the auto-injector technology in the proprietary products, particularly with XYOSTED, was resulting in a very attractive revenue growth picture for the company. I guess I can say the introduction was the auto-injector, but we see strong growth potential and a great platform for revenue diversification for Halozyme and growth coming through the commercial business as well.
Okay, very good. That's helpful. Regarding success metrics or operational metrics that you'll consider when reviewing performance of this acquisition over, say, the next 12-18 months, beyond revenue, what other operational metrics would you like investors to track to say, "Wow, that was a success or not?
Yeah. I think revenue is obviously a core one. The profitability of the business and how much is dropping to the bottom line will be another one. I'm also going to be listening to see our additional partnerships that we're able to sign with people interested in a 1 mL, a 2.25 mL, or a 5 mL auto-injector. Because obviously the 5 mL is an exciting additional growth opportunity. As we evaluated this, there's also opportunity in the 2.25 mL, which for an auto-injector is also considered high volume. I would look to those as just some of the initial metrics that we will be wanting to execute.
Okay. Very good. Last question is regarding the ENHANZE platform. You folks have been quite busy probably in considering this Antares acquisition. My question is with regard to ENHANZE, has the focus on Antares reduced your kind of interactions, number of interactions or potential to sign additional ENHANZE partnerships over the course of the next 12 months?
Absolutely not. I think a great evidence of that is the very recently announced new collaboration or twelfth collaboration, which was announced with Chugai just a couple of weeks ago. The way we operate at Halozyme is we have separate people supporting the business development on ENHANZE, and I can say that pipeline of conversations remains robust and very exciting, and that increases every week in terms of us reaching out to people or people reaching out to us. We've a very talented team here at Halozyme, and we very much know that ENHANZE is a wonderful business. We're not going to take our eye off the ball with that, and we've demonstrated we haven't.
The great news is we can now add in this additional opportunity, which, as we talk to potential partners, I think they're going to be very excited to contemplate the potential for ENHANZE plus these auto-injector options.
Very good. Again, congrats on this, deal, and thanks for taking my questions.
Thanks, Charles.
Your next question comes from the line of Jessica Fye from J.P. Morgan. Your line is open.
Hey, guys. Good morning. Thanks for taking my questions. I guess just following up on a couple of themes in the prior questions, I wanna make sure I understand whether you view the Antares kind of auto-injector technology as applicable to any of the
Existing Halozyme platform that's kind of pipeline opportunities that are within your line of sight, i.e., the Wave three products. Are any of those of a volume that would make the Antares' auto-injectors applicable to those products?
Yes, they are. I don't think the companies have revealed the volumes, but there certainly are within the Wave three potential opportunities for the Antares pipeline, and also in the earlier pipeline as well. It's all going to be a question of the volume, Jessica. Importantly, we also see this as a great door opener for additional partnerships and deals with people for all of the volumes that we have. Yes, there are opportunities within our current partners.
Okay. Got it. As the owners of this asset, do you still plan to support development of some of the earlier stage, Antares pipeline products and their partner development projects, for example, with Teva, Pfizer, et cetera?
Yeah, I think obviously today is just the first step in bringing the companies together. We're about to embark in additional conversations, and we'll make additional decisions as we get through some of those meetings and more integration planning. Stay tuned for updates on that as we have them. Not prepared to discuss that today.
Okay. Thank you.
Your next question comes from the line of Anita Dushyanth from Berenberg Capital Markets. Your line is open.
Hi. Good morning. Congrats on the deal, and thanks for taking my questions. As you had mentioned, Helen, previously, that you know the revenue mix for Antares has been a combination of their proprietary products and also those partnered assets. How do you sort of see that evolving going forward?
Without giving specific metrics, we see good growth opportunity from the commercial products, obviously with the launch of TLANDO and the great momentum of XYOSTED. That is a business that is going to be growing very nicely year-over-year, beginning this year. For the auto-injector technology, there are some growth there, but I think we see that growth is being driven by now Halozyme coming in, bringing our contacts, our relationships, our approach, which we believe will allow us to add additional partnerships and get more companies using the auto-injector technology. So both will grow. I think you'll see more immediate growth in the commercial based on just the position of that business.
We are very confident in our ability to grow the auto-injector revenue as well.
Great. That was helpful. Thank you. Just one more question. Regarding the Antares partner assets, do you see, you know, opportunity coming in more from the domestic or global markets eventually?
Let me just think about that. I see opportunities in both. I mean, I don't know if you're referring to the fact that Teva is one of the core partners today. Idorsia is a core partner. I think there are great opportunities with more U.S.-headquartered companies as well. We obviously have a very nice breadth of current partners who span ones who are headquartered outside the U.S. and the U.S. We will be approaching a broad set of companies.
The great news is there are regulatory approvals for these auto-injectors, as you point out, in tens of countries around the world, which does allow us to have with those partners a very nice commercial footprint, obviously, and a large revenue opportunity, being able to take these auto-injectors globally.
Thank you, Helen. That was helpful.
Thank you.
Your next question comes from the line of Elliot Wilbur from Raymond James. Your line is open.
Thanks. Good morning and congratulations on the transaction. First question for you. Historically, a significant amount of the value, at least with respect to Antares commercial portfolio, has been generated on the ANDA side. Is that an area or an endeavor you would expect to continue with more or less activity than what Antares has engaged in historically? With respect to sort of your assessment of this transaction as you think about the value of the commercial portfolio, the existing pipeline, future business development opportunities, I guess, which of those three value buckets do you think were you most pleasantly surprised to find maybe underappreciated value or, you know, which of those areas do you think that financial markets have maybe underestimated the most? Thanks.
All right. Well, with regard to the question on the pursuit of further ANDA approaches or even 505(b)(2) regulatory filings, really would just say that today is the first step in our bringing our companies together. As we are going forward now, we will be working with the Antares team over time, and we'll make additional decisions as we advance that integration planning. Really too early to talk about that.
Obviously, both of those pathways offer rapid pathways to getting two additional commercial products, and it's something we're going to carefully assess. With regard to pleasant surprises, you know, as I mentioned earlier in the prepared remarks, Elliot, you know, we do think that the opportunity for the testosterone replacement therapies where the Antares has now a sub-Q and an oral in a market that is pretty unsatisfied with the IMs and the gels. I think it's underappreciated how that much growth can come and how much share over time will come for the Antares product portfolio. I think we're excited about that.
With regard to the platform, we definitely see and we hear from companies their interest in being able to get auto-injectors that are larger volume. In our view, Antares has got a best-in-class approach to being able to move forward with a large volume, for example, 5 mL. Again, I think certainly we see a lot of exciting growth opportunity there that others may not see if you're not as close to the space.
Your next question comes from the line of Corinne Jenkins from Goldman Sachs. Your line is open.
Good morning. I was just gonna ask, your current business model is with a pretty high-touch offering for your partners, and I'm just curious if that's a model that you think should or could apply to the auto-injector business as you think about partnerships there, and then how does that impact your royalty and milestone discussions and your leverage entering those kinds of conversations?
Sorry, Corinne. We weren't able to hear you. I wonder if you could maybe just try that again. You're breaking up a lot.
Okay, sorry. I'm traveling right now. Is this better?
That's much better. Thank you.
Okay. I was just curious. The current business model includes a relatively high-touch offering to partners, and I'm curious if that's a model you think can or should apply to the auto-injector business as you think about establishing new partnerships. I'm also curious how that could impact the royalty and milestone discussions and your leverage entering any of those partnership conversations?
Well, another thing that attracted us with regard to Antares, the business model, is its business model is actually one of royalties. You know, as we move forward to offer partners the opportunity for rapid delivery of high volume drugs and auto-injectors, it certainly will be something we'll be talking with them about is exactly what the mix of milestones and royalties would be for this combined offering that we believe is going to be highly differentiating in the market. That's certainly something that's going to be conversations we will be having as we move towards bringing our companies together.
We do see it as being a very nice additive opportunity for Halozyme because of the interest we believe there's going to be in the ability to have this high volume auto-injector delivery.
Okay. Given some of the enthusiasm you've expressed during the call on the commercial products and footprint, how do you think about adding any additional commercial products either via discovery efforts or acquisitions?
Yeah, I think the great news and the great benefit that the Antares sales force bring is this coverage of all of the high volume urologists and endocrinologists. It certainly is something that we would be open to over time if we were to find something to add to the bag for those representatives that make sense with that great established footprint and strong relationships. You know, near term, our focus is going to be on completing the acquisition and integrating the companies.
We certainly will remain open in the future to considering expanding on this great opportunity we now have to be potentially adding additional assets if something can fit with the business that we want to create there.
Thanks.
Your next question comes from the line of Jason Butler from JMP Securities. Your line is open.
Hi. Thanks for taking the questions, and let me add my congratulations on the transaction. Helen, can you maybe just talk a little bit about how you see the testosterone market at a high level? You know, how ultimately do the oral and injectable products align in the market? Then secondly, to the extent you can you talk about the overlap of the sales force with the NOCDURNA product? I guess just to what extent is the sales force focused there or, you know, what the opportunity for growth for that product is?
The testosterone market, Jason, obviously we've been doing a lot of research and talking with physicians and payers with regard to that. You know, as I mentioned, it's a very large market, 8 million prescriptions last year, growing at 5%. It was growing higher than that before COVID, and we do see an opportunity for even more rapid growth. The market today with the options of mostly IM, sub-Q, or patches is not satisfied. IMs can cause pain. They're a little inconvenient as many patients need to be going into the doctor's office for that. The gels always bring the worry about the contact of family members with it. We certainly found that there is a high desire and demand for more convenient options for patients.
With the XYOSTED being a weekly sub-Q, there were very positive strong reaction to that profile because of what it means for patients in terms of convenience. The same story is true for the oral. TLANDO, when it launches, will be the only oral that is non-titratable. Your maintenance dose is your starting dose. For many patients who don't want the messy gel or don't want to be injected, this is going to be an attractive option as well. We see strong growth opportunity for both of those products. With regard to NOCDURNA, yes, there is a sales force promotion going against that today.
I believe it's in the range of about 40% of the physicians that are being called on for the testosterone products are also NOCDURNA targets, and that's really the urologists where this indication would make sense. We're going to be evaluating as we are with all of the portfolio exactly the path for NOCDURNA moving forward. We do see there is some potential for growth there. I will also say that we think that with the established market of testosterone we also see some very strong growth potential there.
Great. Thanks for taking the questions.
Thank you.
Your next question comes from the line of Joseph Catanzaro from Piper Sandler. Your line is open.
Hi. Thanks for taking my question and congrats on the deal here. Maybe just two quick ones from me. I'm wondering if maybe you could provide some details around some of the historical terms that have been associated with the auto-injector out-licensing deals and how they may be similar or different than what you've been able to do with ENHANZE. Helen, you mentioned that some of the Wave 3 products have volumes that are maybe amenable to an auto-injector, but just in general, how late in a product development cycle could an auto-injector be incorporated? Is that something that needs to happen early, or can it be done late in clinical development? Thanks.
Yes. Thanks. With regard to the ENHANZE terms, we do have some similarities in our business models. I don't believe all of the ENHANZE terms are public, but they are rich royalty rates is what I can say. And so much more emphasis on the royalties than on the milestones and very attractive even compared to the Halozyme ones in general. I would say. Obviously, over time, we may be able to give more details on that. With regard to the auto-injector, I do think for sub-Q products, that it can be incorporated at any point of the life cycle, so the product would be approved as a sub-Q push, and the auto-injector could then be introduced afterwards.
Obviously, the FDA would determine exactly what the approval pathway would be. If the drug is already sub-Q, we know from other precedents that it's pretty straightforward regulatory path for some of the other products. Certainly during phase II or phase III, as ever, as a lifecycle opportunity, there's also I think a very nice plan there. I'll just highlight that Idorsia is incorporated the auto-injector into their phase III, so they're doing it in development. There is an opportunity, as I mentioned, to do it even after the product is approved, especially if the product is already sub-Q. We think that'll be a pretty straightforward path.
Okay. Got it. Thanks for taking my question.
Thank you.
Your next question comes from a line of Benedict Shim from Canaccord Genuity. Your line is open. Benedict Shim from Canaccord Genuity, your line is open. There are no further questions at this time. This does conclude today's conference call. Thank you for your participation. You may now disconnect.