Good morning. I'm Helen Torley, President and Chief Executive Officer of Halozyme Therapeutics, and I will chair this annual meeting of stockholders. I'd like to call the meeting to order. This meeting is being held pursuant to the notice of the annual meeting that was mailed to all of the company's shareholders on or about March 23rd, 2026. The polls are now open. At this time, any stockholders who are present and who would like to vote their shares at this meeting may do so by clicking the Vote Here button on your screen. Otherwise, the proxy holders will vote your shares as indicated on the proxy. Also, any stockholder who would like to submit a question during the meeting may do so by using the Ask a Question function that also appears on your screen.
Mark Snyder, Halozyme's Chief Legal Officer and Corporate Secretary, has been appointed secretary for this meeting to record the minutes, and he has taken the oath to serve as the Inspector of Elections. Mr. Snyder has previously provided Halozyme with a certificate indicating the numbers of shares represented in person or by proxy at this meeting. At this time, I would like to thank the members of the board of directors and the officers of the company who are participating on the call. I'd also like to especially thank Moni Miyashita for her service on the board and for her valuable contributions to the company. I'd also like to introduce John Faulkner and Selah Lichtman of Ernst & Young, the company's independent registered public accounting firm. Mr. Faulkner and Ms. Lichtman will be available to answer any stockholder questions during the question and answer period following adjournment of the meeting.
I'll now ask Mark Snyder, Secretary of the meeting, for his report.
Thank you, Helen. Only stockholders of record on the record date are entitled to vote at this meeting. A copy of the notice of this meeting, together with a declaration as to the mailing of a copy of the notice to stockholders who were holders of record at the close of business on March 9th, 2026, will be made a part of the record of this meeting. The holders of approximately 104.1 million shares are represented at the meeting. Since there were approximately 118.5 million shares of company common stock outstanding at the close of business on the record date for this meeting, a majority of the outstanding common stock is present or represented here today, and a quorum is therefore present. The meeting is authorized to transact business.
At this time, we will address the items of business that were set forth in the notice of this meeting. After the formal business portion of the meeting has been adjourned, I will provide a corporate update and address stockholder questions related to the company. The matters to be considered at the meeting today, which are further described in the proxy statement dated March 23rd, 2026, which was mailed to all stockholders of record with the notice of meeting, will be: firstly, the election of two Class I directors to hold office for a three-year term and until their successors are elected and qualified. Class I consists of two directors. The Board of Directors has nominated those persons set forth in the proxy statement for this meeting. The Class I nominees are Bernadette Connaughton and Matthew Posard. These nominations need no second.
Since the company's bylaws require advance notice of additional board nominations and no such advance notice was given to the corporate secretary, the nominations are closed. The second matter to be considered at the meeting is an advisory vote on the company's executive compensation. The third matter to be considered at the meeting is a proposal to ratify the selection of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending December 31st, 2026. We will give stockholders another minute to complete their voting if they wish to do so at this time. While stockholders finish voting, I'll just take a moment to mention again that immediately following the adjournment of the meeting, I will be making a brief corporate presentation and responding to questions that are submitted by our stockholders. The polls are now closed.
We'll now hear the report of the Inspector of Elections regarding the results of the elections.
As the Inspector of Elections, I am pleased to report on the results of this meeting as follows. Bernadette Connaughton and Matthew Posard have each been elected as Class I directors for the company to hold office for a three-year term and until a successor is elected and qualified. The compensation of the company's named executive officers has been approved by a non-binding advisory vote. The selection of Ernst & Young LLP as the company's independent registered public accounting firm for the fiscal year ending December 31st, 2026, has been ratified. The final voting results for each of these matters will be reported on a Form 8-K, which the company will file with the SEC.
Thank you, Mark. That concludes the formal business of the meeting, the meeting is now adjourned. I'll move forward now to provide an update on our recent activities and our plans for the future. Following my presentation, we will be able to take your questions and answers. If I can begin on slide two with the forward-looking statements. During this presentation, I will be making forward-looking statements, and I do refer you to our SEC filings for a full listing of the risks and uncertainties. Moving now to slide four. 2025 was a very strong year for execution and progress at Halozyme.
On this slide, we've summarized some of the highlights, and I think we're really proud to have both expanded our pipeline with two acquisitions of very exciting new long duration iPSC enabling platforms, HyperCon, which came from the Elektrofi acquisition, and Surf Bio. While at the same time, achieving strong momentum, delivering durable royalty revenues through continued strong execution of our ENHANZE platform. I'm very proud to say we now have 10 globally approved ENHANZE products. Three new ENHANZE agreements that were signed during 2025, and I'll detail a little bit about those in a moment.
We also advanced our auto injector platform, signing one new licensing and supply agreement with Viatris, and also two new development agreements for the advancement of our small volume and our high volume auto injector. All of these actions have been very deliberately created to position Halozyme for strong, durable revenue growth extending into the 2040s. Next slide, please. Just a little bit of background on the acquisitions and why they are so exciting and why they expand the opportunity for Halozyme. To date, many of the biologics that patients need for treatment of their diseases require high volumes for the therapeutic doses that are required due to the concentration and the formulation limitations.
10+ years ago, Halozyme transformed the delivery of care with the launch of the first ENHANZE enabled product, where ENHANZE allows for rapid, high volume subcutaneous delivery of biologic medicines. We've demonstrated this success with monoclonal antibodies and bispecific antibodies, allowing from conversion of hour-long IV infusions into minute long sub-Q injections. The two concentration technologies that we have acquired, both the HyperCon and the Surf Bio technology, allow us to reach a new segment of the market, and that is those patients who are able to deliver treatment themselves at home or by a shorter injection in the doctor's office. I'll go into a little bit more detail on the next page, please, slide six. The HyperCon technology and the Surf Bio technology both allow biologics to be concentrated up to 500 milligrams per ml.
Now, that is about three to five times higher than today's standard biologic, which means that the volume is going to be reduced by a similar amount, three to five times smaller. For many drugs, that's going to enable them to be delivered in 2 milliliters or less, and that can be fitted into an everyday auto injector and be easily delivered in two steps by the patient themselves at home. Now, imagine that freedom. The patient previously had to go to an IV infusion suite, sit there for hours. Now, with the promise of HyperCon and Surf Bio, we see a future where for certain conditions and for certain patients, they will be delivering their own therapy in seconds at home via an auto injector. That is why we've added HyperCon and Surf Bio.
Still a lot of opportunity for that larger volume, rapid sub-Q delivery in the doctor's office. The new technologies bring new freedom for patients suffering from diseases like autoimmune disease, neurological disease, and cardiovascular disease. If we can go to the next slide, please. I mentioned while all of that was going on, we've seen a renewed and very exciting momentum of interest in sub-Q delivery with ENHANZE. At the end of the last year, we were very proud to have signed three new deals that are listed here, each of which bring durable revenue streams for Halozyme for many years to come. They allow us to expand into areas we're in today with oncology, which is where the Merus N.V. product is. Skye Bioscience potentially brings us into obesity, obviously a large unmet need area.
With Takeda, that moves us into inflammatory bowel disease. Again, showing the versatility and the broad adaptability of ENHANZE to be helping patients with many different types of conditions. We're also very proud that in 2026, earlier this year, we signed the HyperCon agreement with Vertex. This represents the fourth agreement. It's going to be used for multiple targets at Vertex, who are a leading biotechnology and pharmaceutical company. We're very excited to have demonstrated once again the strong interest there is and just a large opportunity for us to continue to grow all of our platforms advancing sub-Q delivery to improve the patient treatment experience. You can go to slide eight, please. We continue to be very proud and demonstrate our high margin and durable business model.
The business model will be very similar to what we have with ENHANZE today, which are a licensing-based model, which, if you look at the bottom of the page, allows us to continue to project high growth margin business, strong free cash flow, and a high operating margin because of this very exciting and unique business model that we have. I'll just close on the financial overview. On slide 10, there is a view of our 2026 guidance. You can see here that it was a strong both in terms of dollar growth year-over-year that we're projecting. The 10 products with ENHANZE that are launched are going to be able to continue to grow this year and for many years to come.
We're very proud of these important year-over-year percentage increases in total revenue, royalty revenue, which will achieve $1 billion in 2026, a year ahead of what we'd previously forecast, as well as a strong contribution shown by the strong adjusted EBITDA, now exceeding $1.125 billion. I'll conclude with our longer term guidance that we have our three-year guidance out here going out to 2028. What you can really see and get very excited about is the continued strength of the business. Strong total revenue growth, really powered by the royalty revenues, with our three leading products, DARZALEX, Phesgo, and VYVGART, continuing to show strong growth. The four recently launched products beginning to contribute more in 2026, 2027, and 2028.
Importantly, looking at that adjusted EBITDA guidance, continuing to grow very strongly, well, based on the very lean operating model that we have today. With that concludes my prepared remarks. Just let me take a moment to see if there are any questions that have come in from our stockholders. All right, there was a question that came in with regard to share repurchases. In terms of share repurchases, we continue to have capital available under our currently authorized share repurchase program. That definitely remains one of our focus areas for our capital allocation.
Over the last 5+ years, we have returned close to $2 billion to our shareholders through share repurchases, and it is, as I say, an important part of our capital allocation. Second question was what is the expected timeline and outcome for the Merck litigation? The Merck litigation, we expect to get the scheduling order in the infringement case, which is being held in the district court. We'll hear from the judge what those dates for scheduling are in June. Now what I will say is that these types of trials of infringement can take a number of years.
In terms of when the timeline is, I would think in terms of it taking several years, unless Merck were to come to the table and want to take a license, in which case we'd be delighted to move forward and offer them a license for the use of MDAs. All right, I believe that is all the questions. Just we'll close by saying thank you to the entire Halozyme team for another great year in 2025, a very strong execution. Also thank our stockholders for your continued support and interest in the company. Thank you very much. Bye-bye now.
This concludes today's annual meeting. You may now disconnect.