Halozyme Therapeutics Falls On Q3 Losses

Halozyme Therapeutics, Inc. HALO reported financial results Monday for the third quarter ended September 30, 2014.

Financial highlights for the third quarter include revenues of $14.6 million, below estimates of $16.45 million and a net loss of $20.3 million, or $0.16 per share, above the estimated loss of $0.14.

The above compares to revenues of $16.0 million and a net loss of $19.3 million, or $0.17 per share, for the third quarter of 2013.

The press release also claimed that the company “completed a corporate reorganization to align with strategic priorities. This reorganization resulted in a workforce reduction of 22 employees.  We will incur a one-time charge in the fourth quarter of 2014 that will be largely offset by reduced compensation expenses during the quarter.”

Dr. Helen Torley, President and Chief Executive Officer, commented that "Our pursuit of Hylenex® in Type 1 diabetes is a potential opportunity to expand the indication and increase sales of Hylenex.  While discussions with the FDA are ongoing, we have learned that the FDA will likely request additional clinical data for a label update translating to potentially higher projected costs and longer time to market than had originally been anticipated.  In the ongoing weeks, we intend to continue to seek clarity with FDA on what data will be required, if any.  Once we have gained clarity as to the regulatory requirements for a label update, we intend to enter into collaborations with third parties or explore other strategic alternatives in order to exploit this opportunity.”

Halozyme Therapeutics, Inc. traded at $8.60 in the aftermarket, down 7.73 percent.