Halozyme Therapeutics, Inc (HALO) swung to a net loss for the quarter ended Dec. 31, 2016. The company has made a net loss of $27.39 million, or $ 0.21 a share in the quarter, against a net profit of $4.32 million, or $0.03 a share in the last year period. Revenue during the quarter dropped 25.32 percent to $39 million from $52.23 million in the previous year period. Gross margin for the quarter contracted 438 basis points over the previous year period to 79.48 percent. Operating margin for the quarter stood at negative 57.88 percent as compared to a positive 10.46 percent for the previous year period.
Operating loss for the quarter was $22.58 million, compared with an operating income of $5.46 million in the previous year period.
"We exited 2016 in a strong position through the benefit of our differentiated business model and having made substantial progress across both of our value-creating pillars," said Dr. Helen Torley, president and chief executive officer. "The positive Phase 2 data we reported last month affirms our conviction in PEGPH20, our lead investigational oncology drug, and supports our ongoing Phase 3 study in pancreas cancer patients. We have made strong progress initiating global sites in the Phase 3 study and see momentum building in the number of patients we are screening."
For fiscal year 2017, Halozyme Therapeutics, Inc forecasts revenue to be in the range of $115 million to $130 million.
Working capital increases sharply
Halozyme Therapeutics, Inc has recorded an increase in the working capital over the last year. It stood at $201.95 million as at Dec. 31, 2016, up 84.74 percent or $92.63 million from $109.32 million on Dec. 31, 2015. Current ratio was at 4.70 as on Dec. 31, 2016, up from 2.75 on Dec. 31, 2015. Cash conversion cycle (CCC) has increased to 82 days for the quarter from 56 days for the last year period. Days sales outstanding went down to 18 days for the quarter compared with 29 days for the same period last year.
Days inventory outstanding has increased to 84 days for the quarter compared with 52 days for the previous year period. At the same time, days payable outstanding went down to 21 days for the quarter from 25 for the same period last year.
Debt increases substantially
Halozyme Therapeutics, Inc has witnessed an increase in total debt over the last one year. It stood at $216.62 million as on Dec. 31, 2016, up 334.69 percent or $166.79 million from $49.83 million on Dec. 31, 2015. Total debt was 82.83 percent of total assets as on Dec. 31, 2016, compared with 27.41 percent on Dec. 31, 2015. 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]
