Halozyme Therapeutics Inc. (NASDAQ:HALO): 1Q14 SG&A Expenses Increased, Net Loss Widened


Dallas, Texas 05/15/2014 (FINANCIALSTRENDS) –A biopharmaceutical company, Halozyme Therapeutics, Inc. (NASDAQ:HALO) is engaged in the research, development and commercialization of human enzymes and its products utilizes its proprietary Enhanze technology. The company’s core research strategy revolves around human enzymes to facilitate delivery of injectable by modifying tissue under the skin. Earlier this week, the company released its 1Q14 results on May 12, 2014.

On the following day, the stock traded with solid volumes and gained close to 7%. Even yesterday, the stock traded with considerably higher volume of 4.67 million shares against its 30 day average trading volume of 3 million shares. However, it closed at $7.95, losing 1.12% from its previous close. The stock has added nearly 10.6% in past one month trade, but is down by 48% year to date.

1Q14 Highlights:

Halozyme Therapeutics, Inc. (NASDAQ:HALO) reported 1Q14 loss of $0.22 per share, much below a loss of $0.17 per share reported for 1Q13. Even it fell short of $0.16 per share, anticipated by the Zack Consensus Estimate. The company reported marginal 1.1% increase in its revenue to $11.9 million during 1Q14 as compared to 1Q13. However, revenues also fell short of the Zack Consensus Estimate of $15 million.

The company reported 2.8% year over year decrease in its research and development expenses to $21.4 million during 1Q14 which was largely attributed to lower manufacturing costs. However, Selling, General and Administrative (SG&A) expenses increased significantly by 35.7% year over year to $10.3 million during 1Q14 which was due to increase in compensation costs.

Pipeline Update:

Halozyme Therapeutics, Inc. (NASDAQ:HALO)’s marketed product Hylenex recorded net sales of $2.5 million during 1Q14 and the company reported that it is pursuing discussions with the USFDA for a label update to include important safety and efficacy data. In addition, Hylenex recombinant was reported to meet the primary endpoint in CONSISTENT-1 study. Both Hylenex recombinant as well as Hylenex’s new formulation are presently under review for pre-treatment of insulin infusion site in type-I diabetes.

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