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 $559 million; its shares were traded at around $6.23 with and P/S ratio of 63.8. 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 $2.6 million for the three months ended September 30, 2009 compared to $2.2 million for the three months ended September 30, 2008. Revenues under collaborative agreements primarily consisted of the amortization of license fees and, where applicable, milestone payments received from Baxter and Roche of approximately $1.8 million and $588,000 for the three months ended September 30, 2009 and 2008, respectively. Revenues under collaborative agreements also included reimbursements for research and development services from Roche of $546,000 and $760,000 and Baxter of $260,000 and $847,000 for the three months ended September 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.
Product Sales Product sales were $411,000 for the three months ended September 30, 2009 compared to $268,000 for the three months ended September 30, 2008. The increase of $143,000 was primarily due to the increase in sales of Cumulase and API for HYLENEX. Based upon Baxters launch of HYLENEX in the fourth quarter of 2009, we expect product sales to increase in future periods due to increased HYLENEX sales.
Cost of Sales Cost of sales were $103,000 for the three months ended September 30, 2009 compared to $131,000 for the three months ended September 30, 2008. We expect cost of sales to increase in future periods in the event that product sales increase as expected.
Research and Development Research and development expenses were $13.2 million for the three months ended September 30, 2009 compared to $10.1 million for the three months ended September 30, 2008. The increase of $3.1 million, or 31%, was primarily due to the increase in clinical trial expenses of $2.3 million mainly related to our ultrafast insulin program and compensation costs of $1.1 million, of which $120,000 related to increased share-based compensation, primarily due to the increase in our research and development headcount. At September 30, 2009, our headcount for research and development functions totaled 106 employees, compared with 90 employees at Se
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