Halozyme Therapeutics Q2 Loss Narrows, Results Beat View

(RTTNews) - Biopharmaceutical company Halozyme Therapeutics, Inc. (HALO) on Monday reported a loss for the second quarter that narrowed from last year, reflecting double-digit revenue growth and lower operating expenses.

Los per share for the quarter was narrower than analysts' expectations and revenues beat their estimates.

Dr. Helen Torley, President and Chief Executive Officer of Halozyme Therapeutics said, "This was a quarter of strong progress across our proprietary and partner programs. We are pleased to have resolved the clinical hold and to resume patient enrollment and dosing in our Phase 2 clinical trial for PEGPH20 in patients with pancreatic cancer."

The company's second-quarter net loss was $16.27 million or $0.13 per share, narrower than loss of $22.91 million or $0.20 per share in the year-ago period. On average, eight analysts polled by Thomson Reuters expected the company to report loss of $0.14 per share. Analysts' estimates typically exclude special items.

Total revenues for the quarter rose 27 percent to $18.39 million from $14.45 million in the comparable quarter last year. Analysts had a consensus revenue estimate of $13.71 million for the quarter.

Revenues in the second quarter included $6.0 million in product sales of bulk rHuPH20 for use in manufacturing Roche products, $7.2 million in collaboration revenues, $3.0 million in Hylenex product sales, and $1.7 million in royalty revenue from sales of products under our collaborations.

Product sales for the quarter more than tripled to $9.49 million, while royalties for the quarter were $1.69 million. However, revenues under collaborative agreements declined 37 percent to $7.20 million.

Total operating expenses declined 9 percent from last year to $33.33 million.

In June 2014, Roche Holding AG (RHHBY) initiated the European launch of its new subcutaneous formulation of MabThera or rituximab that uses Halozyme's recombinant human hyaluronidase for the treatment of patients with follicular lymphoma and diffuse large B-cell lymphoma. The first commercial launch in the EU triggered a $5 million milestone payment to Halozyme.

HALO closed Monday's regular trading session at $10.06, up $0.03 or 3.39 percent on a volume of 1.59 million shares. In after-hours, the stock further gained $0.20 or 1.99 percent to $10.26.