Halozyme Reports Fourth Quarter and Year End 2012 Financial Results

     Halozyme Reports Fourth Quarter and Year End 2012 Financial Results

PR Newswire

SAN DIEGO, Feb. 25, 2013

SAN DIEGO, Feb. 25, 2013 /PRNewswire/ -- Halozyme Therapeutics, Inc. (NASDAQ:
HALO) today reported financial results for the fourth quarter and year
ended December 31, 2012.

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

"2012 was another productive year marked by key partner regulatory filings in
Europe, as well as our establishment of a new collaboration with Pfizer,"
said Gregory I. Frost, Ph.D., President and Chief Executive Officer, Halozyme.
"These advancements, coupled with the continued progress of our own pipeline
products, leave Halozyme well-positioned for continued growth in 2013."

Fourth Quarter Highlights 

Highlights of Halozyme's fourth quarter and recent activities include:

  o Pfizer Collaboration: Entry into a worldwide Collaboration and License
    Agreement with Pfizer Inc. for the purpose of developing and
    commercializing products combining proprietary Pfizer biologics with
    Halozyme's Enhanze™ Technology.  Pfizer has elected three exclusive
    licenses to therapeutic targets in primary care and specialty care
    indications, and has the right to elect up to three additional targets
    upon payment of additional fees.
  o Cinryze^® Phase 2 Trial: ViroPharma initiated a Phase 2b study to evaluate
    the safety and efficacy of subcutaneous (SC) administration of Cinryze (C1
    esterase inhibitor [human]) in adolescents and adults with hereditary
    angioedema (HAE) for prevention of HAE attacks.
  o MabThera^® EMA Filing: Roche submitted a line extension application to the
    European Medicines Agency (EMA) for a subcutaneous (SC) formulation of
    MabThera (rituxumab). MabThera SC uses Halozyme's Enhanze Technology,
    which enables the injection of large volumes of a medication under the
    skin and may result in faster administration times versus intravenously
    (IV) administered MabThera.
  o MabThera Positive Trials: Announced positive results from Roche's SABRINA
    and SparkThera studies, which showed that a fixed dose of MabThera can be
    administered subcutaneously, potentially allowing patients to spend less
    time in infusion centers receiving their MabThera treatment. Specifically,
    the studies showed that subcutaneous injection resulted in non-inferior
    MabThera concentrations in the blood compared with standard IV infusion.

Fourth Quarter and Year End 2012 Financial Results

The net loss for the fourth quarter of 2012 was $4.4 million, or $0.04 per
share, compared with a net loss for the fourth quarter of 2011 of $18.4
million, or $0.18 per share. The net loss for the year ended December 31,
2012 was $53.6 million, or $0.48 per share, compared to a net loss of $19.8
million, or $0.19 per share for the comparable period in 2011.

  o Revenues for the fourth quarter of 2012 were $21.8 million, compared
    to $2.4 million for the fourth quarter of 2011. Revenues in the fourth
    quarter of 2012 included license fees revenue from Pfizer of $9.5 million
    and a milestone payment from Roche of $4 million.
  o Research and development expenses for the fourth quarter of 2012
    were $18.6 million, compared with $14.9 million for the fourth quarter of
    2011. The increase was due primarily to an increase in manufacturing
    activities to support potential launches from our collaborators.
  o Selling, general and administrative expenses for the fourth quarter of
    2012 were $7.0 million, compared to $5.9 million for the fourth quarter of
    2011.
  o Cash and cash equivalents were $99.9 million as of December 31, 2012,
    which includes net proceeds of $29.7 million from a term loan with Oxford
    Finance and Silicon Valley Bank for working capital and other near-term
    growth initiatives, compared with $52.8 million as of December 31, 2011.
     Excluding the proceeds from the term loan, net cash used in the fourth
    quarter of 2012 was approximately $17.4 million.

Financial guidance for 2013 was announced on January 7, 2013 and remains
unchanged, with an expected net cash burn to be between $45 and $50 million.

Conference Call

Halozyme will webcast its Quarterly Update and Year End 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 fourth quarter and full year
end 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 replay ID number 409638.

Upcoming Corporate Presentation

Halozyme is scheduled to present at the upcoming Barclays Global Healthcare
Conference in Miami on March 12, 2013 at 4:15 p.m. ET/1:15 p.m. PT.

The presentation will be webcast through the "Investors" section of Halozyme's
corporate website at www.halozyme.com, and the 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, which increase the absorption and dispersion of biologics,
drugs and fluids. Halozyme's pipeline addresses therapeutic areas, including
diabetes, oncology and dermatology that have significant unmet medical need.
The Company markets Hylenex^® recombinant (hyaluronidase human injection) and
has partnerships with Roche, Pfizer, 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 Company's expected net cash burn for 2013, the development and
commercialization of products and the potential benefits and attributes of
such products) 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 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
and costs, unexpected results or 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.

 

Halozyme Therapeutics, Inc.
Unaudited Condensed Consolidated Statements of Operations
                         Three Months Ended         Twelve Months Ended
                         December 31,               December 31, 
                         2012         2011          2012          2011
REVENUES:
  Product sales, net     $            $             $             $  
                         1,459,735    348,280        2,887,442     1,836,102
  Revenues under
  collaborative          20,333,814   2,062,886     39,437,784    54,250,334
  agreements
       Total revenues    21,793,549   2,411,166     42,325,226    56,086,436
OPERATING EXPENSES:
  Cost of product sales  653,884      56,159        1,094,400     257,834
  Research and           18,567,744   14,916,205    70,044,073    57,563,470
  development
  Selling, general and   6,979,034    5,866,921     24,812,199    18,104,073
  administrative
       Total operating   26,200,662   20,839,285    95,950,672    75,925,377
       expenses
OPERATING LOSS           (4,407,113)  (18,428,119)  (53,625,446)  (19,838,941)
Interest and other       1,257        12,504        73,444        69,090
income, net
NET LOSS                 $            $             $             $
                         (4,405,856)  (18,415,615)  (53,552,002)  (19,769,851)
Basic and diluted net    $            $             $             $          
loss per share            (0.04)       (0.18)        (0.48)        (0.19)
Shares used in computing
basic and diluted 
  net loss per share     112,323,056  103,406,407   111,077,105   102,566,089

 

Halozyme Therapeutics, Inc.
Unaudited Condensed Consolidated Balance Sheets
                                              December 31,     December 31,
                                              2012             2011
ASSETS
Current assets:
    Cash and cash equivalents                 $   99,901,264   $   52,825,527
    Accounts receivable, net                  15,703,087       2,262,465
    Inventories                               2,670,696        567,263
    Prepaid expenses and other assets         12,752,888       8,332,242
        Total current assets                  131,027,935      63,987,497
Property and equipment, net                   3,700,462        1,771,048
        Total Assets                          $ 134,728,397    $   65,758,545
LIABILITIES AND STOCKHOLDERS'
EQUITY
Current liabilities:
    Accounts payable                          $     2,271,689  $     7,556,859
    Accrued expenses                          7,783,447        5,615,574
    Deferred revenue, current portion         8,891,017        4,129,407
        Total current liabilities             18,946,153       17,301,840
Deferred revenue, net of current portion      34,954,966       36,754,583
Long-term debt, net                           29,661,680       -
Lease financing obligation                    1,450,000        -
Deferred rent, net of current portion         861,879          802,006
Stockholders' equity:
    Common stock                              112,709          103,990
    Additional paid-in capital                347,314,658      255,817,772
    Accumulated deficit                       (298,573,648)    (245,021,646)
        Total stockholders' equity            48,853,719       10,900,116
        Total Liabilities and Stockholders'   $ 134,728,397    $   65,758,545
        Equity

Investor Contact:
Kurt Gustafson
Halozyme Therapeutics
858-704-8272
ir@halozyme.com

Media Contact:
Nurha Hindi
Hill + Knowlton Strategies
310-633-9434
Nurha.Hindi@hkstrategies.com

SOURCE Halozyme Therapeutics, Inc.

Website: http://www.halozyme.com