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Halozyme Therapeutics Inc. Reports Operating Results (10-Q)

August 06, 2010 | About:
10qk

10qk

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Halozyme Therapeutics Inc. (HALO) filed Quarterly Report for the period ended 2010-06-30.

Halozyme Therapeutics Inc. has a market cap of $676.3 million; its shares were traded at around $7.36 with and P/S ratio of 49.5. 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, Stanley Druckenmiller of Duquesne Capital Management, LLC, Steven Cohen of SAC Capital Advisors, Chuck Royce of Royce& Associates.
This is the annual revenues and earnings per share of HALO over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of HALO.


Highlight of Business Operations:

Revenues Under Collaborative Agreements — Revenues under collaborative agreements were approximately $3.0 million for the three months ended June 30, 2010 compared to $1.2 million for the three months ended June 30, 2009. Revenues under collaborative agreements consisted of the amortization of license fees received from Baxter and Roche of approximately $804,000 and $756,000 for the three months ended June 30, 2010 and 2009, respectively, and reimbursements for research and development services from Baxter of $894,000 and $276,000 and Roche of $1.2 million and $214,000 for the three months ended June 30, 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 expect the non-reimbursement revenues under our collaborative agreements to continue to increase in future periods provided that we meet various clinical and regulatory milestones set forth in such agreements.

Cost of Product Sales — Cost of product sales were $84,000 for the three months ended June 30, 2010 compared to $45,000 for the three months ended June 30, 2009. The increase of $39,000 was primarily due to the increase in the sales of HYLENEX API. Based on the voluntary recall of HYLENEX announced in May 2010, we expect total cost of product sales to decrease in future periods until HYLENEX is reintroduced to the market.

Research and Development — Research and development expenses were $11.9 million for the three months ended June 30, 2010 compared to $14.6 million for the three months ended June 30, 2009. The decrease of $2.7 million, or 18%, was primarily due to a $1.6 million decrease in research-related manufacturing activities and a $1.6 million decrease in clinical trial expenses mainly related to the ultrafast insulin program. 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 $3.4 million for the three months ended June 30, 2010 compared to $3.9 million for the three months ended June 30, 2009. The decrease of $546,000 or 14% is mainly due to the decrease in salaries expense and bonus accrual.

Interest and Other Income, Net — Interest and other income consisted of interest income of $6,000 for the three months ended June 30, 2010 compared to $24,000 for the three months ended June 30, 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 $5,000 and $0 for the three months ended June 30, 2010 and 2009, respectively.

Net Loss — Net loss was $12.2 million, or $0.13 per common share, for the three months ended June 30, 2010 compared to $17.1 million, or $0.21 per common share, for the three months ended June 30, 2009. The decrease in net loss was primarily due to the decrease in operating expenses and the increase in revenues.

Read the The complete Report

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