Good afternoon. My name is Rex, and I will be your conference operator today. At this time, I would like to welcome everyone to the Halozyme Q2 2022 Earnings Call. 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. At this time, I would like to introduce Tram Bui, Vice President of Investor Relations and Corporate Communications. You may begin your conference.
Thank you, operator. Good afternoon, and welcome to Halozyme Second Quarter 2022 Financial and Operating Results Conference Call. In addition to the press release issued today after the market closed, you can find a supplementary slide presentation that will be referenced during today's call in the investor relations section of our website. Leading the call will be Dr. Helen Torley, Halozyme's President and Chief Executive Officer, who will provide an update on our business, and Nicole LaBrosse, our Chief Financial Officer, who will review our financial results for the second quarter ended June 30, 2022.
On today's call, we will be making forward-looking statements. I refer you to our SEC filings for a full list of risks and uncertainties. Also during the call, both GAAP and non-GAAP financial measures will be discussed. The non-GAAP or adjusted financial measures are reconciled with the comparable GAAP financial measures in our earnings press release and slide presentation. I'll now turn the call over to Helen Torley.
Thank you, Tram, and good afternoon, everyone. I'll begin on slide three. Our accomplishments in the first half of the year are illustrative of the many opportunities Halozyme have to continue to enhance our growth. With the acquisition of Antares, we further expanded our growth opportunities, adding a best-in-class auto-injector platform and a specialty commercial business, thereby augmenting Halozyme's strategy. These additions further strengthened our position as a leading drug delivery company and extended our strategy to include specialty products. We've continued to deliver operational excellence, achieving multiple drug delivery, commercial, and corporate development milestones.
I'm happy to report that integration activities are proceeding to plan as we approach the 90-day time point, and we're on track to achieve the goals we established. It is this combination of opportunity and execution that gives us confidence in our differentiated growth story. Focusing now on the financial performance highlights. We reported second-quarter revenues inclusive of Antares revenue post the May 24th acquisition close of $152.4 million, a 12% year-over-year increase. This resulted in GAAP EPS of $0.16 and non-GAAP adjusted EPS of $0.53.
Our strong second-quarter revenue results were driven by continued growth in royalty revenues from ENHANZE and the addition of the post-close royalty revenues from auto-injector devices and product sales as a result of the Antares acquisition. Based on the recent close of the Antares transaction and strong year-to-date results, together with the latest information from collaboration partners and planned expenditures for the year, we are raising our guidance for 2022. For full year 2022, we expect total revenues of $655 million-$685 million, an increase from our prior guidance range of $530 million-$560 million. This represents growth of 48%-55% over 2021 total revenue.
The absolute earnings per share is updated to $1.20-$1.35, a decrease from our prior guidance of $1.90-$2.05, mainly due to acquisition-related costs in the current year. Adjusting for acquisition-related costs and other adjustments, we expect non-GAAP earnings per share to be $2.10-$2.25, an increase from our prior guidance range of $2.05-$2.20, representing an increase of 5%-12% over 2021 non-GAAP diluted earnings per share. Let me now move to slide four, and I'll provide some more detail on royalty revenue performance. We continue to see and project robust growth in this high-margin recurring revenue stream.
In the second quarter, total royalty revenue was $85.3 million, representing 86% growth over the second quarter of 2021 and 23% sequential growth. These results include enhanced royalties and the Antares device royalty stream for the portion of the quarter that followed the May transaction close. Royalty revenue growth continues to be driven by our Wave 2 product launches, led by the successful ongoing global launches of Janssen's subcutaneous formulations of DARZALEX and also by Roche's Phesgo. Based on strong momentum, we project an increase in royalty revenues for 2022.
Year-over-year growth is now projected to be greater than 65%, resulting in royalty revenue of $340 million-$350 million, an increase from our prior projection of 50% growth. This increased growth is driven by the addition of the Antares device royalty revenues and DARZALEX subcutaneous performance. Moving now to slide five, I will provide some more color on DARZALEX and DARZALEX subcutaneous performance. Janssen's parent, Johnson & Johnson, reported second-quarter worldwide sales of DARZALEX, including both the IV and subcutaneous forms of $2 billion, an increase of more than 46% year-over-year on an operational basis.
The company noted that DARZALEX sales were driven by share gains in all regions, strong continued uptake, and increased use of subcutaneous formulations. Moving to subcutaneous DARZALEX, SC share continued to grow in the United States during the second quarter with an 83% end-of-quarter share based on Symphony data. This is an increase from 80% share at the end of the first quarter. Additionally, Johnson & Johnson reported SC conversion grew to 80% in Europe. Moving now to the recent results by our partner, Roche.
For the second quarter of 2022, Roche reported strong sales of Phesgo, their combination treatment for patients with breast cancer that utilizes the ENHANZE technology. As a result of ongoing conversion and geographic expansion, second quarter sales of Phesgo were CHF 325 million, an increase of 241% year-over-year. Phesgo, with its short five-eight minutes subcutaneous administration time, is proven to be an attractive option for patients and healthcare system, especially in countries where infusion capacity is limited, with some countries now reporting up to 90% adoption.
We continue to expect strong quarter-over-quarter growth as a result of the ongoing launches in Europe and rest of world and through continued penetration in oncology accounts in the United States. We're also excited that Roche is initiating a study of Phesgo with giredestrant in front line HER2-positive, ER-positive metastatic breast cancer patients, opening up the potential for a future oral and subcu treatment regimen. As a brief comment on our Wave 1 products, which include MabThera Subcutaneous, which is also called Rituxan Hycela, and Subcutaneous Herceptin or Herceptin Hylecta.
We continue to project a modest decline in royalties from these mature products as a result of the ongoing impact related to biosimilar competition to the IV products. I will note that these products are still contributing nicely as a recurring source of revenue. Illustrated on slide six is an overview of the enhanced portfolio. I'll focus your attention on Wave 3 and 4, which represent new royalty revenue opportunities for Halozyme. Our Wave 3 products represent the next set of opportunities, with potential launches protected between 2023 and 2025.
You will note that we've expanded Wave 3 to four products as we're now including OCREVUS, following a recent update from Roche that the top-line data from the phase III SC study will be available in 2023. Moving now to slide seven . I'll begin with the most advanced of our Wave 3 products, Tecentriq and efgartigimod. We are delighted that both of these products recently announced positive phase III subcutaneous study data results. Most recently, Roche announced that its phase III study evaluating a subcutaneous formulation of Tecentriq or atezolizumab with ENHANZE in patients in advanced non-small cell lung cancer met its co-primary endpoint.
The study showed non-inferior levels of Tecentriq in the blood when injected subcutaneously compared with intravenous infusion in immunotherapy-naive patients with advanced or metastatic non-small cell lung cancer for whom prior platinum therapy has failed. The safety profile of the subcutaneous formulation was also consistent with IV Tecentriq. We believe these positive results further demonstrate the opportunity for a co-formulation of ENHANZE to potentially benefit patients by reducing the treatment time for Tecentriq to 3-8 minutes as a subcu delivery, down from 30-60 minutes for IV treatment.
Roche plans to share findings of the study at an upcoming medical meeting and submit for regulatory approval to health authorities globally, including the US Food and Drug Administration and European Medicines Agency. During the first half of 2022, Tecentriq administered intravenously, had revenues of CHF 1.8 billion, growing 11% year-over-year, with Roche reporting strong uptake in lung cancer in the adjuvant setting. I'll move now to argenx and efgartigimod. Following positive results announced in March of 2022, argenx is on track to submit the biologics license application for efgartigimod with ENHANZE in myasthenia gravis to the US Food and Drug Administration by the end of this year.
We believe efgartigimod SC is on track to be the first of our Wave 3 potential partner launches, with potential approval anticipated in 2023. Efgartigimod IV, which has the brand name VYVGART, was approved by the FDA in December of 2021 and in Japan in January of 2022 for the treatment of adult patients with generalized myasthenia gravis. On their recent second quarter call, argenx reported a strong global launch for Vyvgart, with Q2 revenues of $75 million, with an estimated 1,400 patients on treatment, up from approximately 400 patients in Q1.
argenx management further commented that efgartigimod with ENHANZE is currently being evaluated in four additional indications, with multiple data readouts projected in 2023, including data in idiopathic thrombocytopenic purpura, chronic inflammatory demyelinating polyneuropathy, and Pemphigus. With analyst consensus of almost $3 billion in sales for efgartigimod in 2026, we're excited to be partnering with argenx on this important new therapy for autoimmune diseases. Closing out the Wave 3 products, BMS continues with their evaluation of nivolumab subcu in their phase III study.
I'll move now to slide eight. Illustrated on slide eight is the enhanced pipeline by stage of development. Our goal remains to continuously expand the number of products that are in development and to advance products to later stages of development and launch, with many of these events resulting in milestone revenue payments to Halozyme. Highlighted on this slide are the Wave 4 potential launches. These products, if they continue in development, have the potential to launch in the 2025-2027 timeframe. 11 partner products are in ongoing phase I clinical testing or have completed phase I testing.
Let me provide some key updates during the quarter. Chugai initiated a phase I study to evaluate the pharmacokinetics, pharmacodynamics, and the safety of a targeted antibody administered subcutaneously with ENHANZE. It is notable that we announced our collaboration and licensing agreement with Chugai in March of this year, making this the fastest time to phase I dosing in our history at just over two months. This is a strong signal that this collaboration is off to a great start. In June, our partner ViiV initiated enrollment in a phase I single-dose escalation study to evaluate pharmacokinetics, safety and tolerability of long-acting cabotegravir administered subcutaneously with ENHANZE.
This is the second target and the third trial to be initiated since we announced this agreement just over a year ago. Additionally, our partner Takeda recently reported positive top-line results for their phase III ADVANCE-1 clinical study of HyQvia, which is immune globulin 10% with ENHANZE in patients with chronic inflammatory demyelinating polyneuropathy, which is also called CIDP and is a rare autoimmune disease. The clinical study met its primary endpoint for maintenance treatment of CIDP, and Takeda plans to submit applications for HyQvia's regulatory approval in the United States and European Union by the end of 2022.
In addition to these significant advances in the first half of the year, we continue to expect further pipeline progress and expansion for the remainder of the year. We project this will result in more than 10 new study starts in 2022, including more than six new phase II or phase III trial starts for existing ENHANZE partner programs and two new products entering the clinic this year. You may also have noted that we recognized $50 million in collaboration revenue in the second quarter. This was related to an anticipated study start by a partner in the third quarter.
Concluding this enhanced development program overview, I'm pleased to announce that in June, BMS nominated an undisclosed target resulting in a $5 million payment. This will add to BMS's ongoing portfolio, which includes a subcutaneous version of nivolumab, which is in phase III testing, and a subcutaneous nivolumab- relatlimab combination, which is in phase I development. We are very pleased with the progress over the partner development pipeline, and we look forward to supporting the significant enhanced growth opportunities that these represent. Now I'll give you a bit more color regarding the Antares acquisition and our integration progress since this transaction closed on May 24.
Summarized on slide nine is the current Antares portfolio. Our excitement regarding the new opportunities that the Antares portfolio brings is high. With decades of experience in device development engineering, we gained a strong internal development team who specialize in creating custom-designed drug delivery devices that are tailored to the patient and the therapeutic need. We've activated teams made up of individuals from both companies whose goal it is to expand the number of companies licensing our auto-injector technology. Work is also underway to design and create a large volume auto-injector, which by combining the innovative Antares auto-injector platform with ENHANZE, will offer a unique approach for patient-friendly subcutaneous treatment delivery.
What is so exciting is that we see opportunity for large volume subcutaneous delivery across a spectrum of disease areas for both small molecule drugs and biologics. The strong cultural fit across our companies, including a focus on innovation for patients, have meant that the teams are hitting the ground running. We are also excited to have added three proprietary products, XYOSTED, TLANDO, and LUXTURNA. Our focus with XYOSTED, our weekly virtually painless subcutaneous testosterone replacement treatment, which is delivered by auto-injector, is to grow share through gaining patients who previously have been receiving intramuscular treatment.
I'm pleased that XYOSTED achieved its highest number of weekly prescriptions in this recently, a sign of its continued growth. With our field force expanded, executed, we launched TLANDO several weeks ago in June. Our access team is focused on gaining and then expanding payer coverage as our field team is educating physicians on TLANDO, a twice-a-day oral testosterone replacement treatment that does not require dose titration. Moving now to slide 10.
The acquisition of Antares through revenue resulting from commercial product sales and from the innovative auto-injector platform is projected to add durable revenue and revenue growth on top of the already strong revenue growth potential we see for ENHANZE. Our projected ENHANZE growth is resulting from growth in royalty revenues from the multiple waves of potential new launches we have just discussed. Moving now to slide 11. The Antares acquisition fully aligns with our previously announced capital allocation priorities.
These priorities were to invest and maximize ENHANZE revenue growth and durability, to continue to return capital to our shareholders through share repurchases, and to seek to acquire a platform technology that would add to and further extend our revenue durability. As you can see from the updated guidance for the year, and in line with our prior comments, the transaction is expected to be accretive to Halozyme's 2022 revenue and non-GAAP earnings and supports our growth strategy to 2027 and beyond. I'll now turn the call over to Nicole to discuss our second quarter financial results and provide more detail on the combined company guidance. Nicole?
Thank you, Helen. Beginning on slide 12, total revenue for the second quarter was $152.4 million compared to $136.5 million in the prior year period. The year-over-year increase of 12% was primarily driven by an increase in royalty revenue and the addition of product sales as a result of the Antares acquisition, partially offset by a decrease in revenues under collaboration agreements due to a $40 million upfront payment associated with entering into the ViiV collaboration in the prior year period. Royalty revenue for the second quarter was $85.3 million, an increase of 86% compared to $45.8 million in the prior year period.
The year-over-year increase was primarily driven by continued strong uptake of Janssen subcutaneous DARZALEX utilizing ENHANZE. Cost of sales for the second quarter was $33.9 million compared to $23 million in the prior year period. The year-over-year increase was primarily driven by an increase in product sales as a result of the Antares acquisition. Operating income was $34.1 million, compared to $93 million in the prior year period. The year-over-year decrease was primarily driven by one-time transaction costs related to the Antares acquisition, including amortization of intangible assets.
On a GAAP basis, diluted earnings per share was $0.16, compared to $0.62 in the prior year period. On a non-GAAP basis, diluted earnings per share was $0.53, compared to $0.66 in the prior year period. When comparing to the prior year, it's important to note that 2022 was our first year recording income tax expense, which impacted current period non-GAAP diluted EPS by $0.14 per share. Moving now to slide 13. Based on the recent close of the Antares transaction and strong year-to-date results, as well as the latest information from our collaboration partners and planned expenditures for the year, we are raising guidance for 2022.
For the full year of 2022, we expect total revenue of $655 million-$685 million, an increase from our prior guidance range of $530 million-$560 million, representing growth of 48%-55% over 2021 total revenue. The projected revenue contribution from the Antares business to full year guidance is $115 million-$125 million. In terms of the components of our revenue, we expect revenue from royalties to increase by greater than 65% over revenue from royalties in 2021 to $340 million-$350 million.
Collaboration revenues for 2022 are expected to be at similar levels to what we achieved in 2021 and substantially more weighted in the fourth quarter of the year based on our expected timing for partner milestone-bearing events. Product sales from 2022 are expected to increase from 2021 due to the contribution of sales from the Antares acquisition. We expect operating income of $240 million-$265 million, a decrease from our prior guidance range of $350 million-$380 million, representing a decline of 4%-13% over 2021 operating income.
This includes one-time transaction costs related to the Antares acquisition, including amortization of intangible assets, as well as the planned incremental $20 million operating expense investment in 2022 to maximize, enhance, and extend royalty revenue durability. We expect GAAP diluted earnings per share of $1.20-$1.35, a decrease from our prior guidance of $1.90-$2.05, mainly due to acquisition-related costs in the current year. Adjusting for acquisition-related costs and other adjustments, we expect non-GAAP diluted earnings per share to be $2.10-$2.25, an increase from our prior guidance range of $2.05-$2.20, and representing an increase of 5%-12% over 2021 non-GAAP diluted earnings per share.
This increase in the guidance range of $0.05 per share is a result of the projected accretion from the Antares acquisition. Our balance sheet remains strong, with 3.3x net debt-to-EBITDA ratio at June 30, 2022, which we expect to reduce to less than 3x by the end of the year. We continue to have access to low-cost pro rata bank debt through our revolving credit facility and project strong cash flows from operating activities.
We will continue to execute on our previously announced three-year, $750 million share repurchase program, inclusive of a $150 million accelerated share repurchase initiated in December of 2021, which concluded in June. We continue to plan for up to an additional $100 million in share repurchases in 2022, dependent on market conditions and other factors. With that, I'll now turn the call back to Helen.
Thank you, Nicole. I would like to thank the entire Halozyme team for the hard work that resulted in our strong performance this quarter and for the excellent progress with integration. As you heard today, we're continuing to deliver growing revenues, growing operating income, and to expand our pipeline, resulting in strong near-term and long-term growth. Thank you all for joining us today. With that, we'd be delighted to take your questions. Operator, would you please open the call for the questions?
At this time, I would like to remind everyone, in order to ask a question, press star then the number one on your telephone keypad. Your first question comes from the line of Mike DiFiore. Your line is open.
Hi, guys. Congrats so much on the quarter, and thank you for taking my questions. Just two for me. Been getting a lot of this from investors on the potential impact of drug pricing reform on Halozyme's top line. To the extent that you can, if you could offer any color on how that may affect your finances, that'd be great. Along those lines, would co-formulated products be considered new products in their own right and therefore not tied to the parent brand's launch date, or will they be considered one and the same? Separately, any color you could give on the TLANDO launch. The Rx data seems as if it may be restricted in IQVIA and IMS. Thank you.
All right. Well, thanks for the questions, Mike. Let me just start with a high-level comment on drug pricing reform. Obviously, the Senate bill has been issued, but we're still awaiting a lot of the regulations to be published by CMS, so it is hard to give a specific answer. I do think one of the very important factors about Halozyme, though, is we do have a broad and diversified portfolio of products that are at different stages of development across multiple partners who are selling their innovative products and medicines globally.
I do think that is a very good picture to have, considering that there will only be certain drugs that are going to potentially be impacted in the future by these pricing reforms. It's a little bit too early to talk about this. We can say that for the biologic drugs, any impact is expected in 13 years after their first launch. Certainly as we look at our portfolio, those events certainly would be well past 2025 if that's helpful. We'll be sharpening our pencils when more details are available, Mike , to be able to assess that.
Certainly, we're feeling in a very good position because of our portfolio. Similar type of response to the co-formulation are new. I think until the regulations are written and published, it is not gonna be possible to give an opinion on that or understand exactly how this is going to be operationalized. We certainly are beginning our work on the Senate bill and waiting for those CMS regulations to be able to come up with a full assessment. Obviously we'll share our assessment at that time.
TLANDO launch, yes, as you know, just launched a few weeks ago in June. Our focus at the moment is really on market access. Teams working to gain access and coverage within the key pharmacy benefit managers. While our representatives are out talking to the physicians presenting to them our oral therapy, twice a day oral therapy that doesn't require dose titration. Early days yet, and certainly, the keys are going to be working to get that additional access in place and continuing to educate physicians on what we think is an important new offering for patients looking for testosterone replacement.
Very helpful. Thank you.
Your next question comes from the line of Jake Walter. Your line is open.
Operator, maybe we could move to the next question? I think we're not able to hear, and maybe Jake could come back.
Certainly. Your next question comes from the line of Corinne Jenkins. Your line is open.
Great. Good afternoon. Maybe a little more high level, can you just provide an update on where you stand with the integration of Antares and what you've learned just in the initial few weeks or so since that deal? Anything particularly with respect to the commercial infrastructure and where, maybe you are going to be focused in that piece of the business?
All right. Thanks. Thanks, Corinne. Well, as you know, before we completed the acquisition, we had commented that we had detailed integration plans in place. I can say from the point of view of cultural integration, process integration, and getting some of our performance and new ideas implemented, things are going very nicely on track. I have to give a big thank you to everybody on both sides, Halozyme and Antares, who were contributing to that.
Couple of highlights just to mention. The teams really did hit the ground running with the concepts and ideas around how do we create a unique offering, we think, in the market of a high volume auto-injector that would be used with ENHANZE. That's just an example that we were hoping to see and are indeed seeing with how the power of bringing the company together. You asked a specific question about commercial infrastructure. I think everybody's aware that at the beginning of this year, the Antares began an expansion of its field footprint from about 90 reps to 108 reps.
The goal of that was obviously to prepare for the addition of TLANDO and to increase share of voice and reach in terms of being able to make sure that we were getting to the right frequency all of the top volume prescribers. I'm very pleased to say that is virtually complete, that expansion. We now have almost all of the territories filled and reps obviously coming up to speed with the new reps coming up to speed with the new product.
Now, with that, obviously any integration comes a bit of disruption, but I'm very proud to see and happy to see that our teams are putting up some very good numbers and many representatives are just doing a terrific job moving through that modest disruption that's happening in their physician call list to deliver and continue to perform. Very confident as a result of this that we are going to grow both of our products, particularly XYOSTED in 2022 over 2021, and i mportantly for 2023, we're gonna be in a great position to grow both brands for the future.
Thanks. Maybe is there any additional color that you can provide on the pull forward, the previous subq, pulling it into the Wave 3 group of products and potentially any color and what that suggests about the relative importance of that product to your partner and within the indication?
I'm so sorry, Corinne. I didn't catch some parts of that. Would you mind repeating?
Sure. Sorry. What additional color can you provide on the OCREVUS subq pull forward that's now in Wave 3, it was previously Wave 4. Any thoughts on what that suggests about the relative importance of that product to Roche, the MS space, and just sort of that looked like a notable update in the quarter.
That's great. Well, with regard to OCREVUS, you know, I don't necessarily think this was a pull forward. It was just an update that Roche management happened to mention in their most recent earnings call that they did expect data in 2023. With that confirmation, and certainty that of them articulating that, we were able to more firmly move that into Wave 3, given the potentials now for a launch between 2023 and 2025. I would look at that more as that clarity provided by Roche so that we could then repeat, and plan against.
With regard to where it fits in the portfolio, if you really look over the last 12-18 months, there's been several comments made by Roche management on its quarterly calls about OCREVUS being a terrific and important growth brand for them. Recognizing that the marketplace is also seeing more oral and subcutaneous therapies. They commented at one point that being able to move OCREVUS to subq really was fitting with where therapy seems to be going in this marketplace. Those comments certainly signal to me that they see subq as an important part of their offerings for patients with multiple sclerosis.
Great. Thank you.
Again, if you would like to ask a question, press star then the number one on your telephone keypad. Your next question comes from David Risinger. Your line is open.
Yes, thanks very much. I have a couple questions, please. First, could you talk about or tell us what the impact of Antares was on non-GAAP EPS in the second quarter, what the figure was for the second quarter? What is the expected impact on a non-GAAP basis on your updated full year 2022 non-GAAP EPS projection? Second, could you remind us- I can't recall, I apologize- w hat has been said about pursuing a once-daily TLANDO and potential timing? Third, could you please comment on business development prospects, so opportunities to sign new partnerships, you know, in the near to medium term? Thank you.
Okay. Thank you, David, for the questions. I'll ask Nicole to start. I'll take these in order. Would you answer the questions on the non-GAAP EPS?
Yeah, happy to, David. While we haven't provided that level of detail, we did provide that the Antares revenue stream did contribute $18.7 million for the quarter. Just a reminder on that contribution, that is from the time period of May 24, the date of acquisition, through to the end of the quarter. For that period, that is the period that we've included in our Q2 results. Then I can say for full year as well you'll see that we did update our guidance for the full year, including updating our non-GAAP diluted EPS, and we've adjusted that range. We've increased it by $0.05 per share, and that is reflective of the accretion that we project for the full year related to the Antares acquisition and the contribution from that part of the business.
All right. I'll move to the once-daily TLANDO. We can provide an update that we did not exercise the option to pursue a TLANDO XR, which is the once-daily TLANDO potential development, with Lipocine. That was based on a comprehensive analysis that looking at our expectations for upside cost duration of the clinical study versus the return on that. We with our portfolio today, which has our terrific XYOSTED subQ, the virtually painless weekly injection and the twice-daily oral, we believe we've got very differentiated offerings for the testosterone replacement therapy market. Then on business development. Yes, indeed, it's actually been very exciting.
We've already been very busy with our current partners, presenting to them the new options, which include a 1 ml auto-injector, 2.25 ml auto-injector, and also talking about our plan to develop a 5 ml auto-injector that would be used with ENHANZE. I can tell you the reception has been very positive with a lot of interest being expressed by several partners who are going back now to look at their portfolios to see if there would be a fit. I'm also excited to say incoming calls are increasing, people inquiring, "Is it possible to do X? Is it possible to do Y?" That always is very positive as well to be getting those incoming calls.
I'll just say, as we have done in the past, we have done a systematic assessment of all of the products that we could find out there that might fit into a 1 mL, 2.25 mL or 5 mL auto-injector. We're now beginning a proactive outbound set of calls to present our offerings to these companies and potential new partners. That's kicking off in August. Certainly a very good reception, very nice response to how differentiated the Antares auto-injector is.
I think what does seem to make it very different, and we're getting this feedback from potential partners, is the ability to develop a customized device working with the talented Halozyme engineers to make sure that whatever the design is fits the desired patient population, disease, speed of injection, volume of injection. Off to a very strong and encouraging start based on just the last several weeks of BD discussions.
Thank you.
Your next question comes from the line of Jessica Fye. Your line is open.
Hey, guys. Thanks for taking my question. With the Antares close under your belt, I was wondering if you could update us on your capital allocation priorities when you think about additional share repo versus debt pay down versus more acquisitions. Thank you.
Yes. Let me ask Nicole to address that.
Yeah. Thanks for that. I would say we continue to be focused across the board on our capital allocation priorities. Specifically in regards to share repurchases, our plans remain intact with our existing $750 million plan that we initiated late last year, a three-year plan. We did in this quarter complete the first $150 million purchase of that, which was utilizing an accelerated share repurchase program. That was completed this quarter, and we do plan to purchase up to an additional $100 million dollars in the remaining months of the year. That is still tracking nicely.
Again, we do continue to monitor our access to capital markets and our access to debt, and we do have low net leverage ratio of 3.3 x at the end of the quarter, which we expect to reduce to less than 3 x by the end of the year. We're continuing to access that type of leverage as well. Again, growing externally, that also continues to be a focus for us- a s Helen mentioned, we're very focused on the integration and the success of this acquisition and putting all the pieces in place here. That will be an area of focus for us to continue to grow externally as well.
Great. Thank you.
If you would like to ask a question, press star, then the number one on your telephone keypad. There are no further questions at this time. Dr. Torley, I turn the call back over to you.
Well, thank you. We appreciate everybody joining us for this call. Obviously an exciting quarter for us with strong operational performance, which is the key hallmark we believe of Halozyme, even as we integrated Antares. We look forward to providing additional updates in the next quarter, where we expect to continue this very strong momentum and success. Thank you all for your attention today. Bye-bye.