Halozyme Therapeutics Inc. (NASDAQ: HALO) hit a new 52-week low in Monday’s session following the release of a business update at JPMorgan’s 34th Annual Healthcare Conference. Needless to say, this business update did not meet investor expectations.
The company also provided financial guidance for the 2016 full year. The company expects revenue in the range of $110 million to $125 million. Cash flow is expected to be in the range of $35 million to $55 million, and the year-end cash balance is expected to be between $140 million and $160 million.
Consensus estimates from Thomson Reuters call for a net loss of $0.45 per share on $130.92 million in revenue for the 2016 full year.
The company achieved target enrollment in its stage 2 of Halozyme Study 202 of investigational new drug PEGPH20 in metastatic prancic ductal adenocarcinoma. At the same time, Halozyme is reporting a continued reduction in the rate of thromboembolic events in the PEGPH20 treatment arm in stage 2 of Study 202.
Last month Halozyme initiated a global collaboration and licensing agreement with Eli Lilly to develop and commercialize products combining proprietary Eli Lilly compounds with Halozyme’s Enhanze platform.
Dr. Helen Torley, president and CEO of Halozyme, commented on the business update:
We enter the year with great momentum in our expanded PEGPH20 clinical program and with our collaboration partners, including achieving targeted enrollment in our Phase 2 study in pancreatic cancer patients and signing our sixth ENHANZE global collaboration and licensing agreement through the Lilly relationship we announced last month. In 2016, we will continue to invest to advance our study of the pan-tumor potential of PEGPH20, and to further expand the value of our growing ENHANZE franchise.
Shares of Halozyme were trading down 14.3% at $12.73 on Monday, with a consensus analyst price target of $22.57 and a 52-week trading range of $12.29 to $25.25.
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