- Reducing the headcount by approximately 55%, or approximately 160 positions, with over 80% of the reduction completed in early January 2020.
- Restructuring and other cost-saving efforts will result in savings of $130 to $140 million in 2020 compared with the Company’s most recent guidance for 2019 operating expenses excluding the cost of goods sold.
- The Company expects to book separation and contract termination fees in the fourth quarter of 2019. Further details will be unveiled during its third-quarter 2019 financial results webcast and conference call on Tuesday, November 12, 2019.
- Halozyme’s Board of Directors has authorized the initiation of a capital return program to repurchase up to $350 million of the Company’s outstanding common stock over the next three years. The timing of share repurchases and the number of shares of common stock that are repurchased will depend on market conditions and other factors. Repurchases may be commenced or suspended at any time or from time-to-time at the Company’s discretion without prior notice.
- Halozyme anticipates becoming a sustainably profitable company beginning in the second quarter of 2020.
- Annualized operating expenses excluding cost of goods sold of between $65 million and $75 million will be achieved by the fourth quarter of 2020.
- The go-forward organization will comprise approximately 120 employees focused on driving the continued growth of ENHANZE®, specifically in areas that are critical to supporting partners such as manufacturing, quality, regulatory and product development.
- An additional 12 employees will continue promoting the Company’s commercial drug Hylenex®.
As a matter of fact, Halozyme’s ENHANZE® business continues to grow with three commercial products and 11 products currently in clinical trials. The Company will provide a more detailed update for its ENHANZE® business during its third quarter financial results webcast and conference call.
Dr. Helen Torley, President and CEO of Halozyme, said, “Our mission now is to transition our strategy to focus on our high-growth, high-margin ENHANZE® drug delivery technology platform. Our ENHANZE® business is well-positioned for this growth, supported by strong partnerships with leading brands and a promising development pipeline. As a result, Halozyme now has a clear path to near-term, sustainable profitability with strong cash flows and high growth prospects. In addition, our share repurchase program reflects our continued commitment to creating value for our shareholders and to implementing a capital return philosophy aligned with our new company profile.”
We love Halozyme Therapeutics as a biotechnology firm that was creating value-driving partnerships with leading pharmaceutical companies including: Roche, Baxalta, Pfizer, Janssen, AbbVie, Lilly, Bristol-Myers Squibb, Alexion and others – all seeking the use of its ENHANZE® drug delivery technology.
It was painful, though, to see Halozyme spend the money generated by ENHANZE® licensing, in addition to much more money, on developing an oncology product that didn’t happened to work better on pancreatic cancer which is extremely difficult to conquer.
We like the firm’s plans as we believe in its reform promises, its saving decisions and its financial projections.
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The Bad News That Might Save the Life of Halozyme Therapeutics
Halozyme Therapeutics is Focusing on ENHANZE® Technology
Halozyme Therapeutics (HALO) decides to focus on its ENHANZE® drug delivery technology, halt the development activities for PEGPH20 and close its oncology operations.
These decisions were made after the failure of HALO-301 Phase 3 clinical study evaluating PEGPH20 as a first-line therapy for patients with metastatic pancreas cancer to reach the primary endpoint of overall survival.
The PEGPH20 failure to treat pancreatic cancer might have saved Halozyme from going under the heavyweight of the exorbitant cost of developing oncology products.
These are the changes that Halozyme made and decided upon: