Halozyme Therapeutics, Inc (HALO) saw its loss widen to $32.90 million, or $0.26 a share for the quarter ended Mar. 31, 2017. In the previous year period, the company reported a loss of $19.82 million, or $0.16 a share. Revenue during the quarter plunged 30.43 percent to $29.57 million from $42.50 million in the previous year period. Gross margin for the quarter contracted 725 basis points over the previous year period to 74.49 percent. Operating margin for the quarter stood at negative 93.09 percent as compared to a negative 38.05 percent for the previous year period.
Operating loss for the quarter was $27.53 million, compared with an operating loss of $16.17 million in the previous year period.
“The first quarter was marked by strong progress in our ongoing clinical studies of PEGPH20 and continued momentum with partners of our ENHANZE® technology,” said Dr. Helen Torley, president and chief executive officer. “Enrollment is progressing to plan in HALO-301, our ongoing Phase 3 study of PEGPH20 in pancreas cancer patients and in the HALO-101 study of PEGPH20 in combination with KEYTRUDA® in advanced gastric and non-small cell lung cancer patients, supporting the potential for first efficacy data in combination with a PD-1 inhibitor in the fourth quarter. In addition, we are delighted that our Phase 2 HALO-202 study was selected for an oral presentation at the upcoming American Society of Clinical Oncology annual meeting.
For fiscal year 2017, Halozyme Therapeutics expects revenue to be in the range of $115 million to $130 million.
Working capital drops significantly
Halozyme Therapeutics, Inc has witnessed a decline in the working capital over the last year. It stood at $160.65 million as at Mar. 31, 2017, down 31 percent or $72.17 million from $232.81 million on Mar. 31, 2016. Current ratio was at 3.60 as on Mar. 31, 2017, down from 4.63 on Mar. 31, 2016. Cash conversion cycle (CCC) has decreased to 108 days for the quarter from 116 days for the last year period. Days sales outstanding went up to 68 days for the quarter compared with 62 days for the same period last year.
Days inventory outstanding has decreased to 85 days for the quarter compared with 116 days for the previous year period. At the same time, days payable outstanding went down to 45 days for the quarter from 63 for the same period last year.
Debt moves up
Halozyme Therapeutics, Inc has witnessed an increase in total debt over the last one year. It stood at $214.03 million as on Mar. 31, 2017, up 9.19 percent or $18.01 million from $196.02 million on Mar. 31, 2016. Total debt was 94.38 percent of total assets as on Mar. 31, 2017, compared with 63.42 percent on Mar. 31, 2016. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
