HALOZYME REPORTS THIRD QUARTER 2012 FINANCIAL RESULTS
SAN DIEGO, November 8, 2012 –Halozyme Therapeutics, Inc. (NASDAQ: HALO) today reported financial results for the quarter ended September 30, 2012.
“We are pleased with the clinical data from the subcutaneous MabThera (rituximab) trials which should enable filing of the marketing application in Europe later this year,” said Gregory I. Frost, Ph.D., President and Chief Executive Officer, Halozyme. “With potential launches and near-term revenue streams from both subcutaneous Herceptin and MabThera, we are increasing our manufacturing activities to build launch inventory of the rHuPH20 enzyme in support of these programs. We also continue to make progress toward growing our own brand, Hylenex®, by targeting the insulin pump market to complement our late-stage partnered programs and drive sustained growth for shareholders.”
Third Quarter Highlights Highlights of Halozyme’s third quarter activities and recent events include:
•
Three Roche abstracts on the subcutaneous (SC) formulation of MabThera have been accepted for presentation at the American Society of Hematology (ASH) annual meeting in Atlanta, December 8-11.
•
Announced that the U.S. Food and Drug Administration (FDA) provided guidance enabling ViroPharma to resume clinical studies of the subcutaneous administration of Cinryze in combination with rHuPH20.
•
Presented data at the European Association for the Study of Diabetes from two treatment studies which indicate Halozyme’s more physiologic insulin co-formulations with aspart and lispro reduced post-prandial glucose excursions due to the accelerated absorption and action in a Multiple Daily Injection (MDI) take-home setting. Both studies met their primary endpoint of A1C non-inferiority, and in Type 1 diabetes patients, reduced post-meal hypoglycemia compared to lispro alone. Results from Halozyme’s studies in insulin pumps showed that in addition to providing a more rapid profile than current rapid insulin analogs, rHuPH20 also provided a more consistent insulin exposure and absorption over the infusion set life of the pump.
•
Announced plans to develop and commercializeHylenexrecombinant (hyaluronidase human injection) in insulin pumps for the U.S. endocrinology market.
Anticipated Milestones through 2013
•
Roche to present data from the Phase 3 MabThera SC trial and file the marketing authorization application (MAA) with the European Medicines Agency (EMA) in 2012
•
Present HTI-501 clinical proof-of-concept data
•
Decision regarding Herceptin SC MAA from the EMA
•
Complete Cinryze SC+rHuPH20 Phase 2 study
•
Initiate Phase 4 studies to support use ofHylenexwith insulin pumps
•
Present data from the run-in cohorts of the PEGPH20 Phase 2 program in oncology and continue with the randomized portion of the trial
Third Quarter 2012 and Year-To-Date Financial Results The net loss for the third quarter of 2012 was $(20.0) million, or $(0.18) per share, compared with a net income for the third quarter of 2011 of $5.2 million, or $0.05 per share. The net loss for the nine months ended September 30, 2012 was $(49.1) million, or $(0.44) per share, compared to a net loss of $(1.4) million, or $(0.01) per share, for the comparable period in 2011.
•
Revenues for the third quarter of 2012 were $5.3 million, compared to $22.9 million for the third quarter of 2011. Revenues in the third quarter of 2012 primarily consisted of research and development reimbursements from partners.
•
Research and development expenses for the third quarter of 2012 were $19.5 million, compared with $13.5 million for the third quarter of 2011, primarily due to an increase in manufacturing activities to support potential launches from our partners.
•
Selling, general and administrative (SG&A) expenses for the third quarter of 2012 were $5.6 million, compared to $4.3 million for the third quarter of 2011. The increase for SG&A was due to higher compensation costs during the quarter.
•
Cash and cash equivalents were $87.6 million as of September 30, 2012, compared with $66.3 million as of September 30, 2011. Net cash used in the third quarter of 2012 was approximately $14.4 million.
•
2012 cash burn guidance remains at $60-$65 million.
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 third quarter 2012 financial results. The call will be webcast live through the “Investors” section of Halozyme’s corporate website and a recording will be made available following the close of the call. 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 replay ID number 402796.
AboutHylenex® recombinant (hyaluronidase human injection) Hylenexrecombinant is a tissue permeability modifier approved for use by the U.S. Food and Drug Administration.Hylenexrecombinant temporarily breaks down a gel-like substance (hyaluronan) that forms a barrier in the tissues between cells under the skin making the tissue more permeable and facilitating the absorption of fluids/medicines into systemic circulation.Hylenexrecombinant is indicated as an adjuvant to increase the absorption and dispersion of other injected or subcutaneously infused drugs, to facilitate subcutaneous fluid administration and in subcutaneous urography. Hylenexrecombinant is contraindicated in patients with a known hypersensitivity to hyaluronidase or any excipient used to make the drug. For additional information or full Prescribing Information visitwww.hylenex.com orwww.halozyme.com.
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, drugs and fluids. Halozyme’s pipeline addresses therapeutic areas, such as diabetes, oncology and dermatology that have significant unmet medical need. The Company marketsHylenex® 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 atwww.halozyme.com.
Safe Harbor Statement In addition to historical information, the statements set forth above include forward-looking statements including, without limitation, statements concerning ours and our collaborators’ programs in development, the benefits, attributes and commercial opportunity of pre-administration ofHylenexrecombinant with insulin pumps, our intention to launchHylenexrecombinant for such market, the anticipated approval and launch of the subcutaneous Herceptin and MabThera product candidates and possible revenues that may be generated therefrom, the events listed under the heading “Anticipated Milestones through 2013,” and our anticipated cash burn for 2012. 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, unexpected adverse event 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.
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Halozyme Therapeutics, Inc. Unaudited Condensed Consolidated Statements of Operations
Three Months Ended
Nine Months Ended
September 30,
September 30,
2012
2011
2012
2011
REVENUES:
Product sales, net
$
715,354
$
1,156,903
$
1,427,707
$
1,487,822
Revenues under collaborative agreements
4,618,969
21,785,525
19,103,970
52,187,447
Total revenues
5,334,323
22,942,428
20,531,677
53,675,269
OPERATING EXPENSES:
Cost of product sales
226,635
11,723
440,516
201,675
Research and development
19,503,491
13,514,352
51,476,329
42,647,265
Selling, general and administrative
5,634,034
4,263,520
17,833,165
12,237,152
Total operating expenses
25,364,160
17,789,595
69,750,010
55,086,092
OPERATING INCOME (LOSS)
(20,029,837
)
5,152,833
(49,218,333
)
(1,410,823
)
Interest and other income, net
23,991
12,360
72,187
56,586
NET INCOME (LOSS)
$
(20,005,846
)
$
5,165,193
$
(49,146,146
)
$
(1,354,237
)
Basic and diluted net income (loss) per share
$
(0.18
)
$
0.05
$
(0.44
)
$
(0.01
)
Shares used in computing net income (loss) per share:
Basic
112,305,002
103,223,352
110,658,757
102,282,904
Diluted
112,305,002
105,009,189
110,658,757
102,282,904
Halozyme Therapeutics, Inc. Unaudited Condensed Consolidated Balance Sheets
September 30,
December 31,
2012
2011
ASSETS
Current assets:
Cash and cash equivalents
$
87,614,891
$
52,825,527
Accounts receivable, net
4,464,273
2,262,465
Inventories
2,186,063
567,263
Prepaid expenses and other assets
11,353,342
8,332,242
Total current assets
105,618,569
63,987,497
Property and equipment, net
2,363,650
1,771,048
Total Assets
$
107,982,219
$
65,758,545
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable
$
3,526,839
$
7,556,859
Accrued expenses
8,041,673
5,615,574
Deferred revenue, current portion
9,470,247
4,129,407
Total current liabilities
21,038,759
17,301,840
Deferred revenue, net of current portion
34,883,135
36,754,583
Deferred rent, net of current portion
870,548
802,006
Stockholders’ equity:
Common stock
112,693
103,990
Additional paid-in capital
345,244,876
255,817,772
Accumulated deficit
(294,167,792
)
(245,021,646
)
Total stockholders’ equity
51,189,777
10,900,116
Total Liabilities and Stockholders’ Equity
$
107,982,219
$
65,758,545
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