Halozyme Therapeutics Inc. (HALO, Financial) CEO Helen Torley and CFO David Ramsey together bought 75,000 shares of the company on Sept. 17, at a cost of $668,500.
Halozyme is a California-based biopharmaceutical company specializing in researching human enzymes that aid in the absorption of biologics, drugs and fluids. Halozyme’s research is applied to several medical fields, including diabetes, oncology and dermatology.
Torley joined Halozyme in January and led several successful product launches including drugs used to treat osteoporosis and multiple myeloma. Ramsey was previously Halozyme’s vice president of corporate development before becoming chief financial officer.
Insider buys at Halozyme in the past have proven to be strategic moves on the part of the executive leadership. After the stock price dipped to a low of $5.29 in late 2012 and early 2013, the company bought back shares and watched the price slowly rise. Halozyme’s price reached a high of $15.66 in January followed by two insider sells.
However, since the beginning of the year, Halozyme’s stock price has decreased 35%, closing at $9.88 on Sept. 17. While the stock price may be low, the firm’s FCF has declined almost consistently over the past 10 years.
Halozyme’s return on equity and assets are consistently in the red, ending at about -109% in return on equity in 2012, and -82% in return on assets in 2013. The company’s competitors in biotechnology, such as Novo Nordisk (NVO, Financial) and Amgen Inc. (AMGN, Financial), post much more favorable return percentages. Yet, Halozyme’s revenue, EBITDA and EPS growth percentages are much higher than the industry median, with Halozyme’s revenue growth being higher than 97% of the global biotechnology industry.
The company has a relatively high debt-to-equity ratio of 0.90 as of June; its most recently reported cash and cash equivalents totaled about $56 million.
On Sept. 18, Halozyme announced the FDA had removed a hold on a clinical trial to test an investigational drug for advanced pancreatic cancer. The firm’s stock price increased slightly over the course of the day, reaching a high of $10.04.
Value investor Jean-Marie Eveillard (Trades, Portfolio) holds 2.24% of Halozyme’s outstanding shares, and has held shares since the fourth quarter of 2013.
