Company%20Overview%20September%202008%20

1
Matrix Therapies for Life
Company Overview September 2008 UBS Global
Life Sciences Conference
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Safe Harbor
The Private Securities Litigation Reform Act of
1995 provides a "safe harbor" for forward-looking
statements. All statements made in this
presentation that are not statements of
historical fact constitute forward-looking
statements. The matters referred to in
forward-looking statements could be affected by
the risks and uncertainties of the Company's
business. Such risks inherent to the Companys
business will be described in the Companys
filings, when they occur, with the Securities and
Exchange Commission, as well as in its press
releases. The Company's actual results may differ
materially from those expressed in or indicated
by such forward-looking statements.
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HALO Investment Highlights

• Recombinant human hyaluronidase (rHuPH20) core
  technology validated by partnerships potentially
  worth up to 724 million in milestones, plus
  royalties
• FDA approved product, HYLENEX, has large
  addressable market
• Enhanze Technology partnerships with Roche and
  Baxter
• Proprietary product candidates target
  extracellular matrix (Matrix), focused on
  oncology, metabolism, and dermatology, including
• Potential best-in-class prandial insulins for
  treatment of diabetes
• Two NMEs - target multiple solid tumors and
  dermatologic conditions
• Attractive valuation with 82 million in cash 2Q08

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Halozyme Targets the Matrix
Matrix Therapies For Life
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Successful Talent Initiatives Underway

• Notable recent new hires
• Doug Muchmore, MD VP, Endocrinology Clinical
  Development (Eli Lilly)
• Patrick 0Connor, PhD VP, Research (Pfizer,
  Ardea Biosciences)
• Michael J. LaBarre, PhD VP, Product Development
  (Biogen Idec, Vical)
• James E. Cartoni VP, Legal (DLA Piper)
• Total employees 121
• 87 RD, clinical, regulatory, manufacturing
• 12 Commercial, project and alliance management
• 22 HR, finance, IT, legal, corporate

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rHuPH20 Core Technology Mechanism of Action
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Multiple Strategic Paths for Driving the Value of
rHuPH20
HYLENEX
Baxter targeting 500M market opportunity
Low dose FDA-approved rHuPH20 for delivery of
small molecules and fluids
Ongoing alliances with Roche and Baxter
BioScience Actively seeking additional high
value partnership opportunities
Enhanze Technology
High dose rHuPH20 for delivery of large molecules
(e.g., monoclonal antibodies)
Proprietary rHuPH20 Combinations
Leverages HALOs unique knowledge of matrix
biology and proven drug development capabilities
to pursue efficient routes to approval
Generating high value programs for continued
development and/or partnering
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HALO is Pursuing 4 Multi-Billion Dollar Franchise
Opportunities Targeting the Matrix

• Drug Delivery
• HYLENEX with Baxter Medication Delivery
• Enhanze Technology with Roche (up to 13 biologic
  targets)
• Enhanze Technology with Baxter BioScience
  (Gammagard IVIG)

• Endocrinology
• Insulins (diabetes)
• Bisphosphonates (osteoporosis)
• Oncology
• Mitomycin (bladder cancer)
• PEGPH20 (NME solid tumors)
• Dermatology
• HTI-501 (NME)

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HYLENEX Product Highlights

• FDA approved For use as an adjuvant to increase
  the absorption and dispersion of other injected
  drugs for hypodermoclysis.
• HYLENEX global sales and marketing partnership
  with Baxter
• Alliance worth up to 65M (10M up-front 25M
  milestones 10M pre-paid royalties 20M
  equity), plus royalties
• Post-marketing clinical trials ongoing
• Pediatric hydration trial enrollment completed
  May 2008
• Interim data American Academy of Pediatrics,
  October 2008

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Enhanze Technology For Partners with
Injectable Biologics and Drugs
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Enhanzed Remicade Demonstrated IV Like
Bioavailability and PK in a Preclinical Model
2.0E06
1.8E06
1.6E06
1.4E06
1.2E06
Serum Antibody Levels (I-125Counts/ml) in rats
1.0E06
8.0E05
6.0E05
4.0E05
2.0E05
0.0E00
0
10
20
30
40
50
60
70
80
90
100
110
120
130
Time (Hours)
Bookbinder, et al. J Controlled Release.
2006114230-1
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Enhanzed Gammagard Can Be Delivered Monthly by
Subcutaneous Route

• Gammagard Liquid (intravenous immunoglobulin) -
  plasma derived antibody indicated for primary
  immunodeficiency, currently given IV
• Difficult to administer SC due to low
  bioavailability (63), results in need for weekly
  dosing
• SC administration of up to 61.2 grams (612 ml)
  IgG with rHuPH20 at ranges of up to 300 mL per
  hour resulted in bioavailability equal to 92 of
  the IV form in Phase I/IIa trial
• Potential for convenient patient
  self-administration at monthly intervals
• SC route of administration with rHuPH20 expected
  to deliver significant benefits to patients,
  prescribers, and payers

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Enhanze Technology Alliances Could Drive
Significant Value

• Roche
• Roche alliance worth up to 612M (20M up-front
  111M milestones for first 3 exclusive targets
  470M up-front milestones for 10 additional
  targets 11M equity), plus royalties
• Improving manufacturing efficiency, bringing on
  second API supply source to support partnered and
  in-house programs
• Baxter
• Baxter BioScience alliance worth up to 47M (10M
  up-front 37M milestones), plus royalties
• Pivotal Phase III - Gammagard Enhanze expected
  1Q09

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Proprietary Product Candidates Target the Matrix

1. Insulins rHuPH20 combination for prandial
   diabetes therapy
2. Bisphosphonates rHuPH20 combination for
   osteoporosis
3. Chemophase rHuPH20 combination with Mitomycin
   for bladder cancer
4. PEGPH20 Pegylated rHuPH20 targets HA expressing
   tumors
5. HTI-501 Novel Matrix degrading enzyme for
   dermatology

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Insulin Program Highlights

• Completed Phase I, prospective, randomized trial
  assessing safety, tolerability, PK, and PD of two
  insulin products injected SC /- rHuPH20
• Presented at American Diabetes Association in
  June 2008
• rHuPH20 /- fast-acting insulin analog (Humalog)
• rHuPH20 /- regular insulin (Humulin)
• Conducted in 26 subjects
• Positive results confirm potential to develop
  best-in-class therapeutic within growing,
  diabetes market
• 2.5B prandial US insulin market with 13 CAGR
• Anticipate initiation of Phase II clinical trial
  4Q2008

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Significantly Greater Insulin Exposure
Immediately Post Dose and Reduced Insulin
Exposure Later
PK of Humalog and Humulin with and without rHuPH20

• rHuPH20 Co-Formulation With Humalog Reduced
  Median Tmax By 54 (p0.0006)
• Co-Formulation With Humulin Reduced Median Tmax
  By 64 (p0.0002)

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Significantly Faster and Greater Insulin
Exposure, Starting at First Sampling Point
PK of Humalog and Humulin with and without
rHuPH20 in first 15 minutes
Increase In Insulin Concentration From Baseline
At 3 Minutes was 3-fold for Humalog rHuPH20
(p0.03) and 24-fold for Humulin rHuPH20
(plt0.0001)
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Significantly Greater Metabolic Effect Early and
Reduced Metabolic Effect Later
PD of Humalog and Humulin with and without rHuPH20

• rHuPH20 Co-Formulation With Humalog Reduced
  Median tGIR By 46 (p0.0059)
• Co-Formulation With Humulin Reduced Median tGIR
  By 63 (p0.0105)

Time to maximum glucose infusion rate
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Halozymes Proprietary Insulin Formulations Could
Result in Significant Clinical Benefits
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Attributes of HALO Insulin Products
Potential Clinical Benefits
Closer to natural prandial insulin release,
leading to better post-prandial glycemic control
with simplified mealtime dosing Fewer
hypoglycemic events
Faster and greater insulin concentrations and
greater glucose lowering activity early (1st 1-2
hrs)
Lower insulin concentrations and less glucose
lowering activity later (after 3-4 hrs)
Significantly lower variability of key PK and PD
variables
Better predictability with each dose
Significantly greater insulin exposure at early
time points for same dose
Lower dose and therefore reduced insulin dose
dependent weight gain
By Improving Post-prandial Diabetes Care, HALOs
Insulin Program Could Also Reduce the Long-Term
Consequences of Diabetes
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HALO Insulins - Multiple Options for Value
Creation

• Potential for significant advantages over current
  standard of care and other compounds in
  development
• Compelling development path
• Co-formulation with two already approved products
• Potential for efficient regulatory pathways -
  505(b)(2) in US
• Halozyme is well positioned to maximize value
  from insulin programs
• IP protection on rHuPH20 combinations through
  2024
• Poised to begin multiple Phase II studies
• Opportunity to develop and/or partner assets
• Target initiation of Phase II clinical trial by
  end of 2008. Study will evaluate prandial
  glycemic control in T1 diabetic patients

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Bisphosphonate Program Differentiated Product
targeting a gt4B Market

• gt4 billion annual market - long-term oral
  compliance is poor due to insufficient efficacy,
  GI toxicity, and cumbersome dosing regimens gt75
  of patients discontinue therapy within 3 years
• IV BPs - inconvenient, expensive, key prescribers
  have limited capabilities to administer them
• IV-administered Reclast and Boniva - attractive
  targets for conversion to SC with rHuPH20
• Bisphosphonates rHuPH20 may facilitate IV to SC
  conversion and help ensure compliance via
  convenient annual/semi-annual dosing and
  avoidance of GI toxicity
• Target - enter clinic for at least one
  combination in 4Q08

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Chemophase Program Targeting Unmet Medical Need
in Superficial Bladder Cancer

• Tumor recurrence rates for superficial bladder
  cancer are 40-85 50 of recurrences occur
  within the first year
• Chemophase may increase absorption of Mitomycin C
  into the bladder wall to decrease recurrence
  rates
• Ongoing Chemophase Phase I/IIa trial successful
  in determining MTD and demonstrating safety and
  tolerability of induction and maintenance dosing
  positive interim data announced June 2008
• Preparing to consult with regulatory authorities,
  FDA and Scientific Advice for EU, to determine
  optimal regulatory pathway to approval
• Anticipate start of pivotal clinical trials in
  2009

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PEGPH20 May Address a Key Limitation of
Chemotherapy Efficacy

• HA-rich halos found on many types of aggressive
  tumors (breast, prostate, pancreatic)
• PEGPH20 collapses HA dependent pericellular halos
  on tumor cells
• Modulates resistance to chemotherapy

TUMOR CELL
Halo
EnzymeHalo degraded
HA
TUMOR CELL
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IV PEGPH20 Degrades Tumor HA and Rapidly Reduces
Tumor Interstitial Fluid Pressure (IFP)
API Buffer
gt80 reduction in tumor IFP within 1st hour
PEGPH20
IM PC-3 tumor pressure measured 20 minutes
prior and for 2 hours following IV injection of
10,000 units of PEGPH20 (n3), or Carrier Buffer
(n3)
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IV PEGPH20 Markedly Increases the Antitumor
Activity of Taxotere in HA-Positive Tumor Model
PC3 hormone refractory prostate carcinoma (HRPC)
Model
ILS improvement of 225 for TPEGPH20 vs. 59 for
T alone
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PEGPH20 Program Highlights and Next Steps

• Proof of principle efficacy data presented at
  AACR July 2008 Survival increased significantly
  in mouse tumor model for PEGPH20 plus docetaxel
  compared to docetaxel alone
• Further evaluation of PEGPH20 in relevant tumor
  models alone and in combination with optimal
  chemotherapy regimens
• Additional studies on-going to support PEGPH20
  regulatory filing
• Anticipate start of first Phase I clinical trial
  1H09

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HTI-501 Matrix Degrading Enzyme Targets
Cellulite and Other Dermatology Applications

• Enzyme digests the fibrous septae (cords) which
  cause the characteristic dimpling associated with
  cellulite
• HTI-501 degrades collagen at pH 5-6 but is
  rapidly inactivated by the bodys natural
  physiologic pH
• Duration and location of enzyme activity is
  tightly controlled, which may confer significant
  advantages compared to bacterial collagenases
• Established proof of principle efficacy against
  fibrous septae in obese rodent and porcine models
  
• Next steps Further characterization in relevant
  pharmacology models where tight control and
  repeat use are required

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HTI-501 Matrix Degrading Enzyme Program
Cellulite is Caused by Fibrous Septae
Dimple
TARGET
Fat Cells
Fibrous Septae
fibrous septae create dimples
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Principles of HTI-501
Dimple
1. Enzyme injected in active state
2. Enzyme digests fibrous septae
3. Body inactivates enzyme
4. Dimple relieved
Fat Cells
Fibrous Septae
fibrous septae create dimples
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Milestones

• Presentation of Bisphosphonates pre-clinical
  data, 2Q08
• Presentation of PEGPH20 pre-clinical IFP data,
  2Q08
• Presentation of HTI-501 pre-clinical data, 2Q08
• Presentation of Insulin Phase I data, ADA, 2Q08
• Release of Chemophase Phase I/IIa data, 2Q08
• Presentation of PEGPH20 pre-clinical proof of
  principle data, 3Q08
• Initiate Insulin Phase II clinical trial, 4Q08
• Initiate clinical trial for Bisphosphonates
  program, 4Q08
• Initiate GammaGard Enhanze Pivotal Phase III
  clinical trial, 1Q09
• Initiate PEGPH20 Phase I clinical trial, 1H09
• Initiate Chemophase Pivotal Phase III, 2009

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HALOs Unique Investment Thesis

• 4 Multi-Billion Dollar Franchise Opportunities
  Targeting the Matrix
• Drug delivery franchise may provide revenue and
  non-dilutive cash to fund proprietary franchises
  in endocrinology, oncology, dermatology
• Matrix enzymes (rHuPH20, PEGPH20, HTI-501) with
  broad potential across variety of therapeutic
  uses
• rHuPH20 based products with potentially
  best-in-class profiles, faster time to market,
  and lower development risk
• NMEs targeting major indications
• Attractive valuation with 82 million in cash at
  2Q08