Halozyme Therapeutics Plunge 12% As Q3 Results Miss Estimates

(RTTNews) - Shares of Halozyme Therapeutics, Inc. (HALO) plunged 12 percent in extended trading on Monday after the biopharmaceutical company reported results for the third quarter that missed analysts' expectations.

The company also reported a net loss for the quarter that marginally widened from last year, despite lower expenses, reflecting a revenue drop.

The San Diego, California-based company reported a net loss of $20.28 million or $0.16 per share for the third quarter, compared to loss of $19.29 million or $0.17 per share in the prior-year quarter.

On average, eight analysts polled by Thomson Reuters expected the company to report a loss of $0.14 per share for the quarter. Analysts' estimate typically excludes special items.

Total revenues for the quarter decreased to $14.61 million from $16.01 million in the same quarter last year, and missed seven Wall Street analysts' consensus estimate of $16.45 million.

Revenues under collaborative agreements for the quarter were $2.09 million, down from $5.99 million in the comparable quarter a year ago, and product sales decreased to $9.62 million from $10.03 million last year. Operating loss for the third quarter widened to $19.03 million from $18.49 million in the prior-year quarter, while total operating expenses were $33.63 million, lower than $34.51 million in the year-ago quarter.

"The third quarter was notable for completion of a review and update to our corporate strategy based on a portfolio assessment. The recent Fast Track and Orphan Drug designations for PEGPH20, new pre-clinical data further supporting the pan-tumor potential for PEGPH20 and strong investigator interest in both pancreatic and lung cancer trials have confirmed this as our priority proprietary product for investment," President and CEO Helen Torley said in a statement.

In September, the U.S. Food and Drug Administration (FDA) approved Hyqvia for the treatment of primary immunodeficiency (PI) in adults and Baxter began commercial introduction of the product on October 20.

The FDA also granted Fast Track designation for Halozyme's program investigating PEGPH20 in combination with gemcitabine and nab-paclitaxel for the treatment of patients with metastatic pancreatic cancer.

The company also said it completed a corporate reorganization earlier in the month to align with strategic priorities, resulting in a workforce reduction 13 percent or 22 employees. It will incur a one-time charge in the fourth quarter, which will be largely offset by reduced compensation expenses during the quarter.

HALO closed Monday's regular trading session at $9.32, up $0.20 or 2.19% on a volume of 1.21 million shares. However, the stock plunged $1.12 or 12.02% in after-hours trading.