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Halozyme Therapeutics Inc. Reports Operating Results (10-Q)
Posted by: gurufocus (IP Logged)
Date: May 7, 2010 07:12AM

Halozyme Therapeutics Inc. (HALO) filed Quarterly Report for the period ended 2010-03-31. Halozyme Therapeutics Inc. has a market cap of $703.3 million; its shares were traded at around $7.67 with and P/S ratio of 51.4. Halozyme Therapeutics Inc. had an annual average earning growth of 34.9% over the past 5 years.

HALO is in the portfolios of RS Investment Management, Chuck Royce of Royce& Associates.

Highlight of Business Operations:

Product Sales — Product sales were $398,000 for the three months ended March 31, 2010 compared to $78,000 for the three months ended March 31, 2009. The increase of $320,000 was primarily due to the increase in amortization of product-based payment resulted from the increased sales of HYLENEX. Based upon Baxter’s launch of HYLENEX in the fourth quarter of 2009 and potential supply shortages for similar products, we expect product sales to increase in future periods due to increased HYLENEX sales.

Revenues Under Collaborative Agreements — Revenues under collaborative agreements were approximately $3.0 million for the three months ended March 31, 2010 compared to $2.7 million for the three months ended March 31, 2009. Revenues under collaborative agreements primarily consisted of the amortization of license fees and, where applicable, milestone payments received from Baxter and Roche of approximately $804,000 and $1.7 million for the three months ended March 31, 2010 and 2009, respectively. Revenues under collaborative agreements also included reimbursements for research and development services from Baxter of $1.5 million and $424,000 and Roche of $566,000 and $531,000 for the three months ended March 31, 2010 and 2009, respectively. Such reimbursements are for research and development services rendered by us at the request of Roche and Baxter and the amount of future revenues related to reimbursable research and development services is uncertain. We

Research and Development — Research and development expenses were $11.5 million for the three months ended March 31, 2010 compared to $14.0 million for the three months ended March 31, 2009. The decrease of $2.5 million, or 18%, was primarily due to a $2.1 million decrease in research-related manufacturing activities and a $1.2 million decrease in clinical trial expenses mainly related to ultrafast insulin clinical trials. The decrease was partially offset by increases in other research activities. We expect research and development costs to increase in future periods as we increase our research efforts, expand our clinical trials and continue to develop and manufacture our product candidates.

Selling, General and Administrative — SG&A expenses were $3.8 million for the three months ended March 31, 2010 compared to $3.5 million for the three months ended March 31, 2009. The increase of $0.3 million is mainly due to increases in stock compensation expense and market research activities.

Interest and Other Income (Expense), Net — Interest and other income (expense) consisted of interest income of $3,000 for the three months ended March 31, 2010 compared to $38,000 for the three months ended March 31, 2009. The decrease in interest income was primarily due to lower interest rates and lower average cash and cash equivalent balances in 2010 as compared to the same period in 2009. Interest and other income (expense) also included other expense of $2,000 and $5,000 for the three months ended March 31, 2010 and 2009, respectively.

Net Loss — Net loss was $11.8 million, or $0.13 per common share, for the three months ended March 31, 2010 compared to $14.7 million, or $0.18 per common share, for the three months ended March 31, 2009. The decrease in net loss was primarily due to a decrease in operating expenses.

Read the The complete Report



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