Full Press Release Details
SAN DIEGO , Nov. 12, 2019 /PRNewswire/ -- Halozyme Therapeutics, Inc. (NASDAQ: HALO ) today reported financial results for the third quarter ended September 30, 2019 and provided an update on its recent corporate activities and outlook.
"We have transitioned our strategy to focus solely on our high-growth, high-margin ENHANZE ® drug delivery technology," said Dr. Helen Torley , president and chief executive officer. "With profitability anticipated in the second quarter of 2020 and a long runway for growth with ENHANZE ® , we are in a strong position to build value and return capital to investors."
Third Quarter 2019 and Recent Highlights Include:
Third Quarter 2019 Financial Highlights
Financial Outlook for 2019
Halozyme is updating its 2019 financial guidance ranges:
Webcast and Conference Call Halozyme will webcast its Quarterly Update Conference Call for the third quarter of 2019 today, Tuesday, November 12, 2019 at 4:30 p.m. ET / 1:30 p.m. PT . Dr. Torley will lead the call, which will be webcast live through the "Investors" section of Halozyme's corporate website and a replay will be available following the close of the call. To access the webcast and additional documents related to the call, please visit halozyme.com approximately fifteen minutes prior to the call to register, download and install any necessary audio software. The call may also be accessed by dialing (877) 824-0907 (domestic callers) or (647) 689-5655 (international callers). A telephone replay will be available after the call by dialing (800) 585-8367 (domestic callers) or (416) 621-4642 (international callers) using replay ID number 6597916.
Halozyme Therapeutics is a biotechnology company focused on novel biological and drug delivery approaches. Halozyme's proprietary enzyme rHuPH20 is used to facilitate the delivery of injected drugs and fluids and potentially reduce the treatment burden of other drugs to patients. Halozyme has licensed its rHuPH20 technology, called ENHANZE ® , to leading pharmaceutical and biotechnology companies including Roche, Baxalta, Pfizer, Janssen, AbbVie, Lilly, Bristol-Myers Squibb, Alexion and argenx. Halozyme derives revenues from these collaborations in the form of milestones and royalties as the Company's partners make progress developing and commercializing their products being developed with ENHANZE ® . 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 financial performance including expectations for profitability and reduced expenses, plans to implement an organizational restructuring including anticipated reductions in employee headcount, plans to focus its operations solely on its ENHANZE ® drug delivery technology, and the Company's plans to initiate a share repurchase program. Forward-looking statements regarding the Company's ENHANZE ® drug delivery technology may include potential growth of the ENHANZE ® business, the possible activity, benefits and attributes of ENHANZE ® , the possible method of action of ENHANZE ® , its potential application to aid in the dispersion and absorption of other injected therapeutic drugs, the number of collaborative targets actually chosen, whether such products are ultimately developed or commercialized, whether milestones triggering milestone payments will be achieved, and statements concerning facilitating more rapid delivery of injectable medications through subcutaneous delivery 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 fluctuations or changes in revenues, including revenues from collaborators, unexpected delays or results of the Company's organizational restructuring, unexpected expenditures and costs, unexpected delays in the execution of the planned share repurchase, unexpected results or delays in the growth of the Company's ENHANZE ® business, unexpected results or delays in the development and regulatory review of ENHANZE ® products, regulatory approval requirements, unexpected adverse events and competitive conditions.
Contact: Al Kildani Vice President, Investor Relations and Corporate Communications 858-704-8122 [email protected]
| Halozyme Therapeutics, Inc. Condensed Consolidated Statements of Operations (Unaudited) (In thousands, except per share amounts) | ||||||||||||||||
| Three Months Ended | Nine Months Ended | |||||||||||||||
| 2019 | 2018 | 2019 | 2018 | |||||||||||||
| Revenues: | ||||||||||||||||
| Royalties | $ | 16,609 | $ | 18,710 | $ | 52,669 | $ | 59,643 | ||||||||
| Product sales, net | 29,205 | 6,269 | 43,355 | 17,553 | ||||||||||||
| Revenues under collaborative agreements | 416 | 577 | 46,303 | 14,434 | ||||||||||||
| Total revenues | 46,230 | 25,556 | 142,327 | 91,630 | ||||||||||||
| Operating expenses: | ||||||||||||||||
| Cost of product sales | 22,333 | 626 | 28,859 | 4,514 | ||||||||||||
| Research and development | 30,455 | 35,540 | 95,693 | 113,602 | ||||||||||||
| Selling, general and administrative | 17,979 | 14,864 | 53,323 | 42,773 | ||||||||||||
| Total operating expenses | 70,767 | 51,030 | 177,875 | 160,889 | ||||||||||||
| Operating loss | (24,537) | (25,474) | (35,548) | (69,259) | ||||||||||||
| Other income (expense): | ||||||||||||||||
| Investment and other income, net | 1,613 | 1,910 | 5,653 | 5,561 | ||||||||||||
| Interest expense | (2,078) | (4,286) | (7,896) | (14,286) | ||||||||||||
| Net loss before income taxes | (25,002) | (27,850) | (37,791) | (77,984) | ||||||||||||
| Income tax expense | 13 | — | 52 | 220 | ||||||||||||
| Net loss | $ | (25,015) | $ | (27,850) | $ | (37,843) | $ | (78,204) | ||||||||
| Net loss per share: | ||||||||||||||||
| Basic and diluted | $ | (0.17) | $ | (0.19) | $ | (0.26) | $ | (0.55) | ||||||||
| Shares used in computing net loss per share: | ||||||||||||||||
| Basic and diluted | 146,136 | 143,949 | 145,435 | 143,396 |
| Halozyme Therapeutics, Inc. Condensed Consolidated Balance Sheets (Unaudited) (In thousands) | ||||||||
| September 30, 2019 | December 31, 2018 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 59,202 | $ | 57,936 | ||||
| Marketable securities, available-for-sale | 178,796 | 296,590 | ||||||
| Accounts receivable, net | 40,744 | 30,005 | ||||||
| Inventories | 36,051 | 22,625 | ||||||
| Prepaid expenses and other assets | 27,248 | 20,693 | ||||||
| Total current assets | 342,041 | 427,849 | ||||||
| Property and equipment, net | 15,398 | 7,465 | ||||||
| Prepaid expenses and other assets | 12,417 | 4,434 | ||||||
| Restricted cash | 500 | 500 | ||||||
| Total assets | $ | 370,356 | $ | 440,248 | ||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 4,314 | $ | 4,079 | ||||
| Accrued expenses | 45,679 | 49,529 | ||||||
| Deferred revenue, current portion | 3,511 | 4,247 | ||||||
| Current portion of long-term debt, net | 54,537 | 91,506 | ||||||
| Total current liabilities | 108,041 | 149,361 | ||||||
| Deferred revenue, net of current portion | 1,247 | 5,008 | ||||||
| Long-term debt, net | 9,308 | 34,874 | ||||||
| Other long-term liabilities | 6,407 | 2,118 | ||||||
| Stockholders' equity: | ||||||||
| Common stock | 147 | 145 | ||||||
| Additional paid-in capital | 814,095 | 780,457 | ||||||
| Accumulated other comprehensive income (loss) | 392 | (277) | ||||||
| Accumulated deficit | (569,281) | (531,438) | ||||||
| Total stockholders' equity | 245,353 | 248,887 | ||||||
| Total liabilities and stockholders' equity | $ | 370,356 | $ | 440,248 |
SOURCE Halozyme Therapeutics, Inc.