Halozyme Reports First Quarter 2012 Financial Results


SAN DIEGO, May 7, 2012 /PRNewswire/ -- Halozyme Therapeutics, Inc. (NASDAQ: HALO) today reported financial results for the quarter ended March 31, 2012.

(Logo:  http://photos.prnewswire.com/prnh/20100302/LA63139LOGO)

"We achieved a significant milestone in the first quarter with the European regulatory filing of the subcutaneous Herceptin program by our partner Roche," said Gregory I. Frost, Ph.D., President and Chief Executive Officer, Halozyme. "Despite the HyQ regulatory delay from our Baxter collaboration, our pipeline has continued to make tangible progress on all fronts, as well as across diverse therapeutic areas and geographies."

First Quarter Highlights

Highlights of Halozyme's first quarter activities and recent events include:

  • Notification from the European Patent Office (EPO) that a hearing scheduled in opposition of the European patent for Halozyme's recombinant human hyaluronidase enzyme (rHuPH20) was cancelled and the EPO acknowledged the patentability of the claims. The Company anticipates the EPO to issue a final written decision to this effect.
  • Announced with our collaborator, Baxter, that the U.S. Food and Drug Administration (FDA) requested additional information to complete its review of the HyQ Biologics License Application (BLA).The Companies will work together to develop studies to provide additional data to address the concerns raised by the agency.
  • In addition to filing a Line Extension Application for subcutaneous (SC) Herceptin® (trastuzumab) with the European Medicines Agency (EMA), Roche presented Phase 3 registration data from the HannaH trial at the Early Breast Cancer Conference in Vienna. The study met its co-primary endpoints of pharmacokinetics and efficacy. Herceptin SC, using rHuPH20, may provide greater convenience to patients versus the traditional IV method due to its less invasive administration route and quicker administration time (5 minutes versus 30 – 90 minutes).  
  • Roche reiterated their intent to file the Line Extension Application of subcutaneous MabThera® (rituxumab with rHuPH20) to the EMA this year for the treatment of Non-Hodgkin's Lymphoma, Chronic Lymphocytic Leukemia and Follicular Lymphoma.
  • Announced positive data with ViroPharma regarding a Phase 2 SC trial of Cinryze® (C1 esterase inhibitor [human]) in combination with rHuPH20, in patients with hereditary angioedema. Presented at the American Academy of Allergy Asthma & Immunology, the study demonstrated that SC co-administration of Cinryze with rHuPH20 was well tolerated and resulted in sustained physiologically relevant C1 INH functional concentrations.
  • Updated the Hylenex® recombinant (hyaluronidase human injection) label to include instructions for pre-administration of the enzyme in advance of other injected or subcutaneously infused drugs, and information from non-clinical studies that provide further data on the safety profile of Hylenex.

First Quarter 2012 Financial Results

The net loss for the first quarter of 2012 was $15.1 million, or $0.14 per share, compared with a net loss for the first quarter of 2011 of $9.6 million, or $0.10 per share.

  • Revenues for the first quarter of 2012 were $7.4 million, compared to $7.5 million for the first quarter of 2011. Revenues in the first quarter of 2012 primarily consisted of a milestone payment from Roche of $4 million and research and development reimbursements from partners.
  • Research and development expenses for the first quarter of 2012 were $15.9 million, compared with $13.8 million for the first quarter of 2011, primarily due to an increase in manufacturing activities and compensation costs, partially offset by a decrease in clinical trial activities. 
  • Selling, general and administrative (SG&A) expenses for the first quarter of 2012 were $6.6 million, compared to $3.4 million for the first quarter of 2011. The increase for SG&A was due to higher compensation costs and higher marketing and market research expenses during the quarter. 
  • Cash and cash equivalents were $116.6 million as of March 31, 2012, compared with $73.8 million as of March 31, 2011. Excluding the net proceeds of $81.5 million from the financing in February 2012, net cash used in the first quarter of 2012 was approximately $17.7 million.

Due to the HyQ regulatory delay, we anticipate 2012 cash burn to be $55-$60 million, instead of $50-$55 million as previously forecasted.

Conference Call

Halozyme will webcast its Quarterly Update Conference Call today at 4:30 p.m. ET/1:30 p.m. PT. Gregory I. Frost, Ph.D., Halozyme's President and Chief Executive Officer, will lead the call. During the call, the Company plans to provide further details underlying its first quarter 2012 financial results. To access the webcast, please log on to www.halozyme.com approximately fifteen minutes prior to the call to register, download, and install any necessary audio software. For those without access to the Internet, the live call may be accessed by phone by calling (877) 407-8037 (domestic callers) or (201) 689-8037 (international callers). A telephone replay will be available shortly after the call by dialing (877) 660-6853 (domestic callers) or (201) 612-7415 (international callers) using account number 367 and replay ID number 393124.

Upcoming Corporate Presentations

Halozyme is scheduled to present at the upcoming investor conference.

  • Bank of America Merrill Lynch 2012 Healthcare Conference in Las Vegas on May 16, 2012 at 1:00 p.m. ET/10:00 a.m. PT. Gregory I. Frost, Ph.D., President and Chief Executive Officer of Halozyme Therapeutics, will provide a corporate overview.

The presentation will be webcast through the "Investors" section of Halozyme's corporate website at www.halozyme.com, and a recording will be made available for 90 days following the event. To access the live webcast, please log on to Halozyme's website approximately fifteen minutes prior to the presentation to register and download any necessary audio software.

About Halozyme

Halozyme Therapeutics is a biopharmaceutical company dedicated to developing and commercializing innovative products that advance patient care. With a diversified portfolio of enzymes that target the extracellular matrix, the Company's research focuses primarily on a family of human enzymes, known as hyaluronidases, that increase the absorption and dispersion of biologics. Halozyme's pipeline addresses therapeutic areas, such as diabetes, oncology and dermatology that have significant unmet medical need. The Company markets Hylenex® recombinant (hyaluronidase human injection) and has partnerships with Roche, Baxter, ViroPharma and Intrexon. Halozyme is headquartered in San Diego, CA. For more information on how we are innovating, please visit our corporate website at www.halozyme.com.

Safe Harbor Statement

In addition to historical information, the statements set forth above include forward-looking statements including, without limitation, statements concerning the EPO's anticipated issuance of a final written decision regarding our European patent for rHuPH20, Roche's anticipated filing of the Line Extension Application of subcutaneous MabThera® (rituxumab with rHuPH20) to the European Medicines Agency this year, our anticipated cash burn for 2012  and potential benefits and attributes of our product candidates. These statements involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The forward-looking statements are also identified through use of the words "believe," "enable," "may," "will," "could," "intends," "estimate," "anticipate," "plan," "predict," "probable," "potential," "possible," "should," "continue," and other words of similar meaning. Actual results could differ materially from the expectations contained in forward-looking statements as a result of several factors, including unexpected expenditures, clinical trial results, delays in development and regulatory review, regulatory approval requirements and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's reports on Forms 10-K, 10-Q, and other filings with the Securities and Exchange Commission.

Media/Investor Contact:

Anne Erickson

Executive Director

Halozyme Therapeutics

858-704-8264

This e-mail address is being protected from spambots. You need JavaScript enabled to view it.



 

Halozyme Therapeutics, Inc.

Unaudited Condensed Consolidated Statements of Operations















Three Months Ended March 31,







2012



2011

















REVENUES:











Product sales, net

$       187,411



$165,449





Revenues under collaborative agreements

7,252,768



7,378,445







Total revenues

7,440,179



7,543,894

















OPERATING EXPENSES:











Cost of product sales

70,761



11,717





Research and development

15,891,109



13,785,797





Selling, general and administrative

6,618,707



3,405,966







Total operating expenses

22,580,577



17,203,480

















OPERATING LOSS

(15,140,398)



(9,659,586)

















Interest and other income, net

21,217



23,869

















NET LOSS

$  (15,119,181)



$ (9,635,717)































Basic and diluted net loss per share

$         (0.14)



$             (0.10)

















Shares used in computing basic and diluted net loss per share

107,589,514



100,927,402





















 

Halozyme Therapeutics, Inc.

Unaudited Condensed Consolidated Balance Sheets























March 31,



December 31,









2012



2011















ASSETS









Current assets:











Cash and cash equivalents

$    116,608,304



$      52,825,527



Accounts receivable, net

5,550,830



2,262,465



Inventory

1,496,783



567,263



Prepaid expenses and other assets

8,910,059



8,332,242





Total current assets

132,565,976



63,987,497

Property and equipment, net

2,152,934



1,771,048





Total Assets

$    134,718,910



$      65,758,545















LIABILITIES AND STOCKHOLDERS' EQUITY









Current liabilities:











Accounts payable

$        3,011,181



$        7,556,859



Accrued expenses

7,184,794



5,615,574



Deferred revenue, current portion

6,484,800



4,129,407





Total current liabilities

16,680,775



17,301,840

Deferred revenue, net of current portion

36,130,767



36,754,583

Deferred rent, net of current portion

846,957



802,006















Stockholders' equity:











Common stock

112,411



103,990



Additional paid-in capital

341,088,827



255,817,772



Accumulated deficit

(260,140,827)



(245,021,646)





Total stockholders' equity

81,060,411



10,900,116





Total Liabilities and Stockholders' Equity

$    134,718,910



$      65,758,545

SOURCE Halozyme Therapeutics, Inc.

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