Halozyme Reports First Quarter 2013 Financial Results

            Halozyme Reports First Quarter 2013 Financial Results

PR Newswire

SAN DIEGO, May 8, 2013

SAN DIEGO, May 8, 2013 /PRNewswire/ -- Halozyme Therapeutics, Inc.(NASDAQ:
HALO) today reported financial results for the quarter ended March 31, 2013.

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

"With the potential for 3 new product launches over the next 12 months and
continued progress on the Hylenex^® brand, I am pleased with the steps we are
making towards our near term revenue drivers," said Gregory I. Frost, Ph.D.,
President and Chief Executive Officer, Halozyme. "Moreover, over the next 8
weeks, we will present a first-look at clinical data from our innovative
pipeline products, PEGPH20 and HTI-501."

Highlights of Halozyme's first quarter activities and recent events include:

  oThe European Medicines Agency's Committee for Medicinal Products for Human
    Use (CHMP) granted a positive opinion to Baxter for the use of HyQvia as
    replacement therapy for adult patients with primary and secondary
    immunodeficiencies.
  oInitiated a 124 patient Phase 2 clinical study evaluating PEGPH20, a
    proprietary, investigational drug, as a first-line therapy for patients
    with stage IV metastatic pancreatic cancer. Patients in the study will
    receive gemcitabine and nab-paclitaxel either with or without PEGPH20. The
    primary endpoint will be to measure progression-free survival.
  oInitiated a 400 patient Phase 4 clinical study – The CONtinuous
    Subcutaneous Insulin infusion STudy ENrolling Type 1 Diabetes (CONSISTENT
    1) – that will evaluate Hylenex use in conjunction with rapid analog
    insulin in people with Type 1 diabetes using insulin pumps. The primary
    endpoints include metabolic and safety outcomes.
  oInvestigators at Yale received FDA clearance to start an artificial
    pancreas investigator initiated trial that incorporates Hylenex. The
    study will test the effect of Hylenex in the continuous loop setting.
  oInitiated an additional multi-lot campaign with our higher productivity
    manufacturing process to support potential Roche product launches.
  oAppointed Matt Posard, Senior Vice President and General Manager of
    Translational & Consumer Genomics at Illumina, Inc., to our Board of
    Directors.

First Quarter 2013 Financial Highlights

  oRevenues for the first quarter of 2013 were$11.8 million, compared
    to$7.4 million for the first quarter of 2012. Revenues in the first
    quarter of 2013 included $9.7 million in revenue from research and
    development reimbursements from partners primarily related to
    manufacturing activities to support potential launches by our partners.
  oResearch and development expenses for the first quarter of 2013 were$22.0
    million, compared with$15.9 million for the first quarter of 2012. The
    increase was due primarily to an increase in manufacturing activities to
    support potential launches by our partners and an increase in clinical
    trial activities.
  oSelling, general and administrative expenses for the first quarter of 2013
    were$7.6 million, compared to$6.6 million for the first quarter of 2012.
    The increase was mainly due to an increase in marketing activities.
  oThe net loss for the first quarter of 2013 was$19.3 million, or$0.17per
    share, compared with a net loss for the first quarter of 2012 of$15.1
    million, or$0.14 per share.
  oCash, cash equivalents and marketable securities were$87.4 million
    atMarch 31, 2013, compared with$99.5 millionatDecember 31, 2012. Net
    cash used in the first quarter of 2013 was approximately$12.0 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 first quarter 2013 financial results.
The call 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. 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 413625.

Upcoming Conferences

  oBank of America Merrill Lynch 2013 Healthcare Conference, Las Vegas,
    Nevada – 5/14
  oUBS Global Health Care Conference, New York, NY – 5/22

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 potential product launches and near-term revenue opportunities, the
Company's expected presentation of data from the PEGPH20 Phase 1b study in
pancreatic cancer and Phase 2 HTI-501 trial in cellulite, the development and
commercialization of product candidates and the potential benefits and
attributes of such product candidates) 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 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 Annual Report on Form 10-K filed with the Securities and Exchange
Commission on March 1, 2013.

Halozyme Therapeutics, Inc.
Condensed Consolidated Statements of Operations
(Unaudited)
                                     Three Months Ended March 31,
                                     2013                 2012
REVENUES:
   Product sales, net                $  1,508,594       $    187,411
   Revenues under collaborative      10,324,946           7,252,768
   agreements
         Total revenues              11,833,540           7,440,179
OPERATING EXPENSES:
   Cost of product sales             738,971              70,761
   Research and development          22,034,437           15,891,109
   Selling, general and              7,555,905            6,618,707
   administrative
         Total operating expenses    30,329,313           22,580,577
OPERATING LOSS                       (18,495,773)         (15,140,398)
Investment and other income          54,988               21,217
Interest expense                     (847,584)            -
NET LOSS                             $ (19,288,369)       $ (15,119,181)
Basic and diluted net loss per share $      (0.17)  $      (0.14)
Shares used in computing basic and
diluted                              112,416,792          107,589,514

net loss per share





Halozyme Therapeutics, Inc.
Condensed Consolidated Balance Sheets
(Unaudited)
                                              March 31,        December 31,
                                              2013             2012
ASSETS
Current assets:
 Cash and cash equivalents                    $  39,017,804   $  99,501,264
 Marketable securities, available-for-sale    48,408,220       -
 Accounts receivable, net                     10,375,733       15,703,087
 Inventories                                  2,737,387        2,670,696
 Prepaid expenses and other assets            10,571,334       12,752,888
   Total current assets                       111,110,478      130,627,935
Property and equipment, net                   3,975,052        3,700,462
Prepaid expenses and other assets             1,280,765        -
Restricted cash                               500,000          400,000
   Total Assets                               $ 116,866,295    $ 134,728,397
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
 Accounts payable                            $   2,884,794  $   2,271,689
 Accrued expenses                             9,177,574        7,783,447
 Deferred revenue, current portion            6,326,158        8,891,017
 Current portion of long-term debt            1,362,055        -
   Total current liabilities                  19,750,581       18,946,153
Deferred revenue, net of current portion      34,318,481       34,954,966
Long-term debt, net                           28,323,233       29,661,680
Lease financing obligation                    1,450,000        1,450,000
Deferred rent, net of current portion         906,091          861,879
Other long term liability                     436,849          -
Stockholders' equity:
 Common stock                                 113,143          112,709
 Additional paid-in capital                   349,459,065      347,314,658
 Accumulated other comprehensive loss         (29,131)         -
 Accumulated deficit                          (317,862,017)    (298,573,648)
   Total stockholders' equity                 31,681,060       48,853,719
   Total Liabilities and Stockholders' Equity $ 116,866,295    $ 134,728,397



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
 
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