Full Press Release Details
SAN DIEGO , Aug. 10, 2015 /PRNewswire/ -- Halozyme Therapeutics, Inc. (NASDAQ: HALO ), a biotechnology company developing novel oncology and drug-delivery therapies, today reported financial results for the second quarter ended June 30, 2015 . Financial highlights include revenues of $43.4 million and net income of $3.0 million , or $0.02 per share, compared to revenues of $18.4 million and a net loss of $16.3 million , or $0.13 per share, for the second quarter of 2014.
"Our performance in the quarter continued to demonstrate the strength of our two-pillar strategy," said Dr. Helen Torley , president and CEO. "In the ENHANZE pillar, we signed our largest licensing agreement in company history with AbbVie, which has the potential to generate new royalty revenue and approximately $130 million for each of up to nine targets.
"In our oncology pillar, we continued to make good progress toward the planned initiation of our phase 3 trial in metastatic pancreatic cancer patients, and expanded our efforts to explore and demonstrate the pan-tumor potential of our investigational new drug, PEGPH20, through our first oncology clinical collaboration agreement. This agreement with Eisai will broaden the PEGPH20 development plan into breast cancer, building on our ongoing work in pancreatic and non-small cell lung cancer, exploring combinations with chemotherapies and immunotherapies."
Second Quarter 2015 Highlights and Subsequent Events
Second Quarter 2015 Financial Highlights
Financial Outlook for 2015
For the full year 2015, the company revised its previously disclosed guidance to the following:
The company raised its revenue projection due to payment received from the AbbVie agreement. Operating expenses are expected to increase primarily due to acceleration of a bulk PH20 manufacturing campaign to fulfill current and future orders, and the building of capabilities related to an expansion of the PEGPH20 clinical program from 2 to 5 trials, including assuring readiness for the global phase 3 study at the end of Q1 2016. Cash burn is expected to decrease due to the inflow of new revenue, partially offset by the increase in planned expenses.
Webcast and Conference Call Halozyme will webcast its quarterly update conference call today, August 10, 2015 at 4:30 p.m. ET / 1:30 p.m. PT . During the call, management will discuss financial results and provide a business update. To listen to the live webcast and view additional documents related to the call, please visit the "Investors" section of Halozyme's corporate website at www.halozyme.com . A webcast replay will be available shortly after the call at the same address. To participate by phone, please dial (866) 710-0179 (domestic callers) or (334) 323-7224 (international callers) using passcode 769890. A telephone replay will be available shortly after the call by dialing (877) 919-4059 (domestic callers) or (334) 323-0140 (international callers) using replay passcode 53958140.
About Halozyme Halozyme Therapeutics is a biotechnology company focused on developing and commercializing novel oncology therapies that target the tumor microenvironment. Halozyme's lead proprietary program, investigational drug PEGPH20, applies a unique approach to targeting solid tumors, allowing increased access of co-administered cancer drug therapies to the tumor. PEGPH20 is currently in development for metastatic pancreatic cancer, non-small cell lung cancer, metastatic breast cancer and has potential across additional cancers in combination with different types of cancer therapies. In addition to its proprietary product portfolio, Halozyme has established value-driving partnerships with leading pharmaceutical companies including Roche, Baxalta, Pfizer, Janssen and AbbVie for its drug delivery platform, ENHANZE™, which enables biologics and small molecule compounds that are currently administered intravenously to be delivered subcutaneously. Halozyme is headquartered in San Diego . For more information visit 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 Company's future expectations and plans for growth in 2015, the development and commercialization of product candidates and the potential benefits and attributes of such product candidates and expected financial outlook for 2015) that involve risk and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. The forward-looking statements are typically, but not always, 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 and costs, unexpected fluctuations or changes in revenues from collaborators, unexpected results or delays in development and regulatory review, regulatory approval requirements, unexpected adverse events and competitive conditions. These and other factors that may result in differences are discussed in greater detail in the Company's Quarterly Report on Form 10-Q filed with the Securities and Exchange Commission on August 10, 2015 .
Contacts: Schond Greenway Halozyme Therapeutics 858-704-8352 [email protected]
Jim Mazzola Halozyme Therapeutics 858-704-8122 [email protected]
| Halozyme Therapeutics, Inc | |||||||||
| Condensed Consolidated Statements of Operations | |||||||||
| (Unaudited) | |||||||||
| (In thousands, except per share amounts) | |||||||||
| Three Months Ended | Six Months Ended | ||||||||
| June 30, | June 30, | ||||||||
| 2015 | 2014 | 2015 | 2014 | ||||||
| Revenues: | |||||||||
| Product sales, net | $ 12,342 | $ 9,494 | $ 22,202 | $ 18,062 | |||||
| Royalties | 6,382 | 1,688 | 13,157 | 2,487 | |||||
| Revenues under collaborative agreements | 24,660 | 7,203 | 26,691 | 9,802 | |||||
| Total revenues | 43,384 | 18,385 | 62,050 | 30,351 | |||||
| Operating Expenses: | |||||||||
| Cost of product sales | 8,144 | 5,924 | 14,638 | 11,444 | |||||
| Research and development | 21,195 | 18,649 | 37,879 | 40,064 | |||||
| Selling, general and administrative | 9,814 | 8,752 | 19,213 | 19,002 | |||||
| Total operating expenses | 39,153 | 33,325 | 71,730 | 70,510 | |||||
| Operating loss | 4,231 | (14,940) | (9,680) | (40,159) | |||||
| Other income (expense): | |||||||||
| Investment and other income, net | 87 | 118 | 189 | 165 | |||||
| Interest expense | (1,299) | (1,451) | (2,598) | (2,827) | |||||
| Net income (loss) | $ 3,019 | $ (16,273) | $ (12,089) | $ (42,821) | |||||
| Net income (loss) per share | |||||||||
| Basic | $ 0.02 | $ (0.13) | $ (0.10) | $ (0.35) | |||||
| Diluted | $ 0.02 | $ (0.13) | $ (0.10) | $ (0.35) | |||||
| Shares used in computing net income (loss) per share | |||||||||
| Basic | 126,144 | 123,710 | 125,723 | 121,200 | |||||
| Diluted | 134,507 | 123,710 | 125,723 | 121,200 |
| Halozyme Therapeutics, Inc | |||||
| Condensed Consolidated Balance Sheets | |||||
| (Unaudited) | |||||
| (In thousands) | |||||
| June 30, | December 31, | ||||
| 2015 | 2014 | ||||
| ASSETS | |||||
| Current assets: | |||||
| Cash and cash equivalents | $ 67,769 | $ 61,389 | |||
| Marketable securities, available-for-sale | 72,946 | 74,234 | |||
| Accounts receivable, net | 9,738 | 9,149 | |||
| Inventories | 7,723 | 6,406 | |||
| Prepaid expenses and other assets | 10,266 | 10,143 | |||
| Total current assets | 168,442 | 161,321 | |||
| Property and equipment, net | 2,594 | 2,951 | |||
| Prepaid expenses and other assets | 2,511 | 1,205 | |||
| Restricted cash | 500 | 500 | |||
| Total assets | $ 174,047 | $ 165,977 | |||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||
| Current liabilities: | |||||
| Accounts payable | $ 4,138 | $ 3,003 | |||
| Accrued expenses | 14,821 | 13,961 | |||
| Deferred revenue, current portion | 6,424 | 7,367 | |||
| Current portion of long-term debt, net | 9,656 | - | |||
| Total current liabilities | 35,039 | 24,331 | |||
| Deferred revenue, net of current portion | 45,252 | 47,267 | |||
| Long-term debt, net | 40,098 | 49,860 | |||
| Other long-term liabilities | 3,429 | 3,167 | |||
| Stockholders' equity: | |||||
| Common stock | 128 | 126 | |||
| Additional paid-in capital | 512,657 | 491,694 | |||
| Accumulated other comprehensive loss | (40) | (41) | |||
| Accumulated deficit | (462,516) | (450,427) | |||
| Total stockholders' equity | 50,229 | 41,352 | |||
| Total liabilities and stockholders' equity | $ 174,047 | $ 165,977 |
SOURCE Halozyme Therapeutics, Inc.