10-year

10-Year Anniversary Promotion (20% off)

Join GuruFocus Premium Membership Now for Only $279/Year

Once a decade discount

Save up to $500 on Global Membership.

Don't Miss It !

Free 7-day Trial
All Articles and Columns »

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

August 07, 2009 | About:
10qk

Halozyme Therapeutics Inc. (HALO) filed Quarterly Report for the period ended 2009-06-30.

Halozyme Therapeutics Inc. is a therapeutically driven development stage biopharmaceutical company dedicated to developing and commercializing recombinant human enzymes for the infertility ophthalmology and oncology communities. The company\'s broad product development portfolio including expected near- and long-term product offerings is based on intellectual property covering the family of human enzymes known as hyaluronidases. The company\'s initial products are being developed to offer safer and purer alternatives toexisting slaughterhouse derived extracts that carry risks of pathogen contamination immunogenicity and toxicity. The commercialization of Halozyme\'s highly versatile enzyme technology within proven markets will enable the company to positively impact the quality of medicine. Halozyme Therapeutics Inc. has a market cap of $622.4 million; its shares were traded at around $7.48 with and P/S ratio of 71.

Highlight of Business Operations:

In November 2008, we filed a shelf registration statement on Form S-3 (Registration No. 333-155787) which allowed us, from time to time, to offer and sell up to $50.0 million of equity or debt securities. In June 2009, we sold approximately $40.0 million of our common stock in a public offering at a price of $6.50 per share. We may utilize this universal shelf in the future to raise capital to fund the continued development of our product candidates, the commercialization of our products or for other general corporate purposes.

Revenues Under Collaborative Agreements Revenues under collaborative agreements were approximately $1.2 million for the three months ended June 30, 2009 compared to $1.4 million for the three months ended June 30, 2008. Revenues under collaborative agreements primarily consisted of the amortization of license fees received from Baxter and Roche of approximately $756,000 and $588,000 for the three months ended June 30, 2009 and 2008, respectively. Revenues under collaborative agreements also included reimbursements for research and development services from Baxter of $276,000 and $554,000 and Roche of $214,000 and $210,000 for the three months ended June 30, 2009 and 2008, respectively. Such reimbursements are for research and development services rendered by us at the request of Baxter and Roche 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.

Research and Development Research and development expenses were $14.6 million for the three months ended June 30, 2009 compared to $8.9 million for the three months ended June 30, 2008. The increase of $5.7 million, or 64%, was primarily due to the increase in clinical trial expenses of $2.0 million, outsourced research and development costs of $1.9 million related to our various preclinical programs and the manufacturing scale-up of our rHuPH20 enzyme, and increased compensation costs of $1.5 million, of which $160,000 related to increased share-based compensation, primarily due to the increase in our research and development headcount. At June 30, 2009, our headcount for research and development functions totaled 98 employees, compared with 83 employees at June 30, 2008. We expect certain 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.

Net Loss Net loss was $17.1 million, or $0.21 per common share, for the three months ended June 30, 2009 compared to $11.0 million, or $0.14 per common share for the three months ended June 30, 2008. The increase in net loss was primarily due to an increase in operating expenses.

Revenues Under Collaborative Agreements Revenues under collaborative agreements were approximately $3.9 million for the six months ended June 30, 2009 compared to $3.0 million for the six months ended June 30, 2008. Revenues under collaborative agreements primarily consisted of the amortization of license fees and milestone payments received from Baxter and Roche of approximately $2.5 million and $1.2 million for the six months ended June 30, 2009 and 2008, respectively. Revenues under collaborative agreements also included reimbursements for research and development services from Baxter of $700,000 and $1.0 million and Roche of $744,000 and $834,000 for the six months ended June 30, 2009 and 2008, respectively. Such reimbursements are for research and development services rendered by us at the request of Baxter and Roche 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.

Research and Development Research and development expenses were $28.6 million for the six months ended June 30, 2009 compared to $17.4 million for the six months ended June 30, 2008. The increase of $11.2 million, or 64%, was primarily due to the increase in outsourced research and development costs of $4.5 million related to our various preclinical programs and the manufacturing scale-up of our rHuPH20 enzyme, and increased compensation costs of $3.2 million, of which $357,000 related to increased share-based compensation, primarily due to the increase in our research and development headcount. At June 30, 2009, our headcount for research and development functions totaled 98 employees, compared with 83 employees at June 30, 2008. Additionally, our clinical

Read the The complete Report

Rating: 3.0/5 (2 votes)

Comments

Please leave your comment:


Get WordPress Plugins for easy affiliate links on Stock Tickers and Guru Names | Earn affiliate commissions by embedding GuruFocus Charts
GuruFocus Affiliate Program: Earn up to $400 per referral. ( Learn More)
Free 7-day Trial
FEEDBACK