2015 Q3 Form 10-Q Financial Statement

#000115903615000092 Filed on November 09, 2015

View on sec.gov

Income Statement

Concept 2015 Q3 2014 Q3
Revenue $31.85M $14.61M
YoY Change 118.08% -8.79%
Cost Of Revenue $6.180M $5.141M
YoY Change 20.21% 652.71%
Gross Profit $4.197M $4.476M
YoY Change -6.23% -52.09%
Gross Profit Margin 13.18% 30.64%
Selling, General & Admin $10.23M $8.587M
YoY Change 19.09% 5.56%
% of Gross Profit 243.65% 191.85%
Research & Development $27.61M $19.90M
YoY Change 38.72% -22.52%
% of Gross Profit 657.87% 444.68%
Depreciation & Amortization $400.0K $500.0K
YoY Change -20.0% 66.67%
% of Gross Profit 9.53% 11.17%
Operating Expenses $37.84M $28.49M
YoY Change 32.8% -15.77%
Operating Profit -$23.24M -$19.03M
YoY Change 22.13% 2.88%
Interest Expense $1.301M $1.376M
YoY Change -5.45% 61.88%
% of Operating Profit
Other Income/Expense, Net $78.00K $122.0K
YoY Change -36.07% 134.62%
Pretax Income -$24.46M -$20.30M
YoY Change 20.49% 5.18%
Income Tax $0.00 $0.00
% Of Pretax Income
Net Earnings -$28.95M -$20.28M
YoY Change 42.73% 5.12%
Net Earnings / Revenue -90.87% -138.85%
Basic Earnings Per Share -$0.19 -$0.16
Diluted Earnings Per Share -$0.19 -$163.7K
COMMON SHARES
Basic Shares Outstanding 126.9M shares 124.0M shares
Diluted Shares Outstanding 126.9M shares

Balance Sheet

Concept 2015 Q3 2014 Q3
SHORT-TERM ASSETS
Cash & Short-Term Investments $123.7M $134.5M
YoY Change -8.03% 105.97%
Cash & Equivalents $71.51M $46.38M
Short-Term Investments $52.20M $88.10M
Other Short-Term Assets $9.900M $8.900M
YoY Change 11.24% -2.2%
Inventory $11.10M $6.916M
Prepaid Expenses
Receivables $8.392M $8.275M
Other Receivables $0.00 $0.00
Total Short-Term Assets $153.1M $158.6M
YoY Change -3.47% 54.25%
LONG-TERM ASSETS
Property, Plant & Equipment $2.686M $3.249M
YoY Change -17.33% -34.18%
Goodwill
YoY Change
Intangibles
YoY Change
Long-Term Investments
YoY Change
Other Assets $3.000M $2.800M
YoY Change 7.14% 16.67%
Total Long-Term Assets $5.644M $6.026M
YoY Change -6.34% -17.76%
TOTAL ASSETS
Total Short-Term Assets $153.1M $158.6M
Total Long-Term Assets $5.644M $6.026M
Total Assets $158.7M $164.6M
YoY Change -3.58% 49.46%
SHORT-TERM LIABILITIES
YoY Change
Accounts Payable $4.437M $4.342M
YoY Change 2.19% -22.35%
Accrued Expenses $18.93M $15.02M
YoY Change 25.98% -27.16%
Deferred Revenue
YoY Change
Short-Term Debt $0.00 $0.00
YoY Change
Long-Term Debt Due $15.70M $10.08M
YoY Change 55.82% 68.76%
Total Short-Term Liabilities $44.85M $34.59M
YoY Change 29.65% -12.7%
LONG-TERM LIABILITIES
Long-Term Debt $34.10M $39.80M
YoY Change -14.32% 51.33%
Other Long-Term Liabilities $3.746M $2.759M
YoY Change 35.77% 199.42%
Total Long-Term Liabilities $3.746M $2.759M
YoY Change 35.77% 199.42%
TOTAL LIABILITIES
Total Short-Term Liabilities $44.85M $34.59M
Total Long-Term Liabilities $3.746M $2.759M
Total Liabilities $48.60M $37.35M
YoY Change 30.11% -7.88%
SHAREHOLDERS EQUITY
Retained Earnings -$487.0M -$445.2M
YoY Change 9.4% 23.63%
Common Stock $518.8M $485.1M
YoY Change 6.93% 36.06%
Preferred Stock
YoY Change
Treasury Stock (at cost)
YoY Change
Treasury Stock Shares
Shareholders Equity $31.80M $39.94M
YoY Change
Total Liabilities & Shareholders Equity $158.7M $164.6M
YoY Change -3.58% 49.46%

Cashflow Statement

Concept 2015 Q3 2014 Q3
OPERATING ACTIVITIES
Net Income -$28.95M -$20.28M
YoY Change 42.73% 5.12%
Depreciation, Depletion And Amortization $400.0K $500.0K
YoY Change -20.0% 66.67%
Cash From Operating Activities -$17.00M -$13.20M
YoY Change 28.79% 6.45%
INVESTING ACTIVITIES
Capital Expenditures -$300.0K -$300.0K
YoY Change 0.0% 0.0%
Acquisitions
YoY Change
Other Investing Activities $20.70M $3.000M
YoY Change 590.0%
Cash From Investing Activities $20.20M $2.700M
YoY Change 648.15% -1000.0%
FINANCING ACTIVITIES
Cash Dividend Paid
YoY Change
Common Stock Issuance & Retirement, Net
YoY Change
Debt Paid & Issued, Net
YoY Change
Cash From Financing Activities 500.0K 800.0K
YoY Change -37.5% -65.22%
NET CHANGE
Cash From Operating Activities -17.00M -13.20M
Cash From Investing Activities 20.20M 2.700M
Cash From Financing Activities 500.0K 800.0K
Net Change In Cash 3.700M -9.700M
YoY Change -138.14% -6.73%
FREE CASH FLOW
Cash From Operating Activities -$17.00M -$13.20M
Capital Expenditures -$300.0K -$300.0K
Free Cash Flow -$16.70M -$12.90M
YoY Change 29.46% 6.61%

Facts In Submission

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<div style="font-family:Times New Roman;font-size:10pt;"><div style="line-height:120%;padding-top:16px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Organization and Business </font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Halozyme Therapeutics, Inc. is a biotechnology company focused on developing and commercializing novel oncology therapies. We are seeking to translate our unique knowledge of the tumor microenvironment to create therapies that have the potential to improve cancer patient survival. Our research primarily focuses on human enzymes that alter the extracellular matrix and tumor microenvironment. The extracellular matrix is a complex matrix of proteins and carbohydrates surrounding the cell that provides structural support in tissues and orchestrates many important biological activities, including cell migration, signaling and survival. Over many years, we have developed unique technology and scientific expertise enabling us to pursue this target-rich environment for the development of therapies.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our proprietary enzymes are used to facilitate the delivery of injected drugs and fluids, potentially enhancing the efficacy and the convenience of other drugs or can be used to alter tissue structures for potential clinical benefit. We have chosen to exploit our technology and expertise in a balanced way to modulate both risk and spend by: (1) developing our own proprietary products in therapeutic areas with significant unmet medical needs, with a focus on oncology, and (2) licensing our technology to biopharmaceutical companies to collaboratively develop products which combine our technology with the collaborators&#8217; proprietary compounds.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The majority of our approved product and product candidates are based on rHuPH20, our patented recombinant human hyaluronidase enzyme. rHuPH20 temporarily breaks down hyaluronan (or &#8220;HA&#8221;), a naturally occurring complex carbohydrate that is a major component of the extracellular matrix in tissues throughout the body such as skin and cartilage. We believe this temporary degradation creates an opportunistic window for the improved subcutaneous delivery of injectable biologics, such as monoclonal antibodies and other large therapeutic molecules, as well as small molecules and fluids. We refer to the application of rHuPH20 to facilitate the delivery of other drugs or fluids as Enhanze</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#8482;</sup></font><font style="font-family:inherit;font-size:10pt;"> technology. rHuPH20 is also the active ingredient in our first commercially approved product, </font><font style="font-family:inherit;font-size:10pt;font-style:italic;">Hylenex</font><font style="font-family:inherit;font-size:10pt;"><sup style="vertical-align:top;line-height:120%;font-size:7pt">&#174;</sup></font><font style="font-family:inherit;font-size:10pt;"> recombinant.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:29px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Our proprietary development pipeline consists primarily of clinical stage product candidates in oncology. Our lead oncology program is PEGPH20 (PEGylated recombinant human hyaluronidase), a new molecular entity, under development for the systemic treatment of tumors that accumulate HA. When HA accumulates in a tumor, it can cause higher pressure in the tumor, reducing blood flow into the tumor and with that, reduced access of cancer therapies to the tumor. PEGPH20 works by temporarily degrading HA surrounding cancer cells resulting in reduced pressure and increased blood flow to the cancer with increased amounts of anticancer treatments administered concomitantly gaining access to the tumor. We are currently in Phase 2 clinical testing for PEGPH20 in metastatic pancreatic cancer (Study 109-202), in Phase 1b clinical testing in non-small cell lung cancer (Study 107-201), and in Phase 1b clinical testing in non-small cell lung cancer and gastric cancer (Study 107-101).</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:30px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Regarding Enhanze, we currently have collaborations with F. Hoffmann-La Roche, Ltd. and Hoffmann-La Roche, Inc. (&#8220;Roche&#8221;), Baxter Healthcare Corporation (predecessor to Baxalta Incorporated) (&#8220;Baxalta&#8221;), Pfizer Inc. (&#8220;Pfizer&#8221;), Janssen Biotech, Inc. (&#8220;Janssen&#8221;), and AbbVie, Inc. (&#8220;AbbVie&#8221;), with one product approved in the U.S. and three products approved for marketing in Europe from which we are receiving royalties and several others at various stages of development.</font></div><div style="line-height:120%;padding-top:8px;text-align:justify;text-indent:32px;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Except where specifically noted or the context otherwise requires, references to &#8220;Halozyme,&#8221; &#8220;the Company,&#8221; &#8220;we,&#8221; &#8220;our,&#8221; and &#8220;us&#8221; in these notes to condensed consolidated financial statements refer to Halozyme Therapeutics, Inc. and its wholly owned subsidiary, Halozyme, Inc., and Halozyme, Inc.&#8217;s wholly owned subsidiary, Halozyme Holdings Ltd.</font></div></div>

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