Halozyme 4Q loss widens on revenue dip
Biotechnology company Halozyme Therapeutics Inc. on Friday reported a wider fourth-quarter loss due to lower revenue and higher costs.
The developer of enzyme-focused products, said it lost $16.9 million, or 17 cents per share, in the last three months of 2010, compared with a loss of $12.7 million, or 14 cents per share, during the same period a year prior.
Revenue fell to $3.6 million from $6.4 million as revenue from partnerships fell by nearly half. Meanwhile, research and development expenses rose to $15.9 million from $14.9 million, mainly due to an increase in manufacturing activities. It also booked higher costs for severance expenses due to staff reductions.
Analysts polled by FactSet expected a smaller loss of 12 cents per share on $5.1 million in revenue.
Halozyme is studying an enzyme designed to alter intravenous drugs so they can be delivered by an injection instead of an IV drip. Halozyme's partners include Baxter International Inc. and Roche.
For the full year, the company lost $53.2 million, or 56 cents per share, compared with a loss of $58.4 million, or 67 cents per share, in 2009. Revenue fell slightly to $13.6 million from $13.7 million, but operating expenses also declined.
Shares of Halozyme rose 16 cents to close at $6.64.