Full Press Release Details
Halozyme Therapeutics
Hill + Knowlton Strategies
HALOZYME REPORTS FOURTH QUARTER AND YEAR END 2013
SAN DIEGO, February 27, 2014 -- Halozyme Therapeutics, Inc. (NASDAQ: HALO) today reported financial results for the fourth quarter and full year ended December 31, 2013. Financial highlights for the fourth quarter include revenues of $12.5 million and a net loss of $22.0 million, or $0.19 per share. This compares to revenues of $21.8 million and a net loss of $4.4 million, or $0.04 per share, for the fourth quarter of 2012. Financial highlights for the full year 2013 include revenues of $54.8 million and a net loss of $83.5 million, or $0.74 per share. This compares to revenues of $42.3 million and a net loss of $53.6 million, or $0.48 per share, in the prior year.
"2013 was a year of execution, growth and transformation for Halozyme. Two of our partnered programs using the ENHANZETM platform received European approvals, we worked with Baxter on their resubmission of an amended BLA to the FDA for HyQvia and we communicated early clinical data in pancreatic cancer from our PEGPH20 program," stated Dr. Helen Torley, President and Chief Executive Officer. "With the proceeds from our recently completed equity offering, we begin 2014 well-positioned to advance our broad proprietary portfolio of therapeutic candidates that could potentially serve cancer, diabetes and cellulite patients."
Fourth Quarter Highlights
Fourth Quarter and Full Year 2013 Financial Highlights
Financial Outlook for 2014
Webcast and Conference Call
Halozyme will webcast its quarterly update conference call today, February 27, 2014 at 4:30 p.m. EST/1:30 p.m. PST. During the call, management will discuss the financial results for the fourth quarter of 2013 and provide a business update. To listen to the live webcast 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 (877) 407-8037 (domestic callers) or (201) 689-8037 (international callers). A telephone replay will be available by dialing (877) 660-6853 (domestic callers) or (201) 612-7415 (international callers) using replay ID number 13576874.
Safe Harbor Statement
In addition to historical information, the statements set forth above include forward-looking statements (including, without limitation, statements concerning the expected timing of the FDA's response to the HyQvia amended BLA submission, the Company's future expectations and plans for the development and commercialization of product candidates and the potential benefits and attributes of such product candidates and expected cash burn for 2014) 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 November 8, 2013.
Halozyme Therapeutics, Inc.
Condensed Consolidated Statements of Operations
| Three Months Ended | Twelve Months Ended | ||||||||||||||
| December 31, | December 31, | ||||||||||||||
| 2013 | 2012 | 2013 | 2012 | ||||||||||||
| REVENUES: | |||||||||||||||
| Product sales, net | $ | 9,806,378 | $ | 1,459,735 | $ | 24,439,724 | $ | 2,887,442 | |||||||
| Revenues under collaborative agreements | 2,692,555 | 20,333,814 | 30,359,723 | 39,437,784 | |||||||||||
| Total revenues | 12,498,933 | 21,793,549 | 54,799,447 | 42,325,226 | |||||||||||
| OPERATING EXPENSES: | |||||||||||||||
| Cost of product sales | 3,540,128 | 653,884 | 6,245,761 | 1,094,400 | |||||||||||
| Research and development | 20,925,194 | 18,567,744 | 96,639,575 | 70,044,073 | |||||||||||
| Selling, general and administrative | 9,356,971 | 6,979,034 | 32,347,748 | 24,812,199 | |||||||||||
| Total operating expenses | 33,822,293 | 26,200,662 | 135,233,084 | 95,950,672 | |||||||||||
| OPERATING LOSS | (21,323,360 | ) | (4,407,113 | ) | (80,433,637 | ) | (53,625,446 | ) | |||||||
| Investment and other income | 64,685 | 1,257 | 229,229 | 73,444 | |||||||||||
| Interest expense | (727,628 | ) | - | (3,274,143 | ) | - | |||||||||
| NET LOSS | $ | (21,986,303 | ) | $ | (4,405,856 | ) | $ | (83,478,551 | ) | $ | (53,552,002 | ) | |||
| Basic and diluted net loss per share | $ | (0.19 | ) | $ | (0.04 | ) | $ | (0.74 | ) | $ | (0.48 | ) | |||
| Shares used in computing basic and diluted net loss per share | 113,550,229 | 112,323,056 | 112,805,439 | 111,077,105 |
Halozyme Therapeutics, Inc.
Condensed Consolidated Balance Sheets
| December 31, 2013 | December 31, 2012 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 27,356,947 | $ | 99,501,264 | |||
| Marketable securities, available-for-sale | 44,145,697 | - | |||||
| Accounts receivable, net | 9,097,084 | 15,703,087 | |||||
| Inventories | 6,169,982 | 2,670,696 | |||||
| Prepaid expenses and other assets | 8,425,684 | 12,752,888 | |||||
| Total current assets | 95,195,394 | 130,627,935 | |||||
| Property and equipment, net | 3,421,506 | 3,700,462 | |||||
| Prepaid expenses and other assets | 2,675,692 | - | |||||
| Restricted cash | 500,000 | 400,000 | |||||
| Total Assets | $ | 101,792,592 | $ | 134,728,397 | |||
| LIABILITIES AND STOCKHOLDERS' (DEFICIT) EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 3,134,757 | $ | 2,271,689 | |||
| Accrued expenses | 14,920,446 | 7,783,447 | |||||
| Deferred revenue, current portion | 7,397,829 | 8,891,017 | |||||
| Total current liabilities | 25,453,032 | 18,946,153 | |||||
| Deferred revenue, net of current portion | 45,745,449 | 34,954,966 | |||||
| Long-term debt, net | 49,771,737 | 29,661,680 | |||||
| Lease financing obligation | - | 1,450,000 | |||||
| Deferred rent, net of current portion | 794,782 | 861,879 | |||||
| Other long-term liability | 18,268 | - | |||||
| Stockholders' (deficit) equity: | |||||||
| Common stock | 114,534 | 112,709 | |||||
| Additional paid-in capital | 361,929,935 | 347,314,658 | |||||
| Accumulated other comprehensive income | 17,054 | - | |||||
| Accumulated deficit | (382,052,199 | ) | (298,573,648 | ) | |||
| Total stockholders' (deficit) equity | (19,990,676 | ) | 48,853,719 | ||||
| Total Liabilities and Stockholders' (Deficit) Equity | $ | 101,792,592 | $ | 134,728,397 |