David Phillips of Y Charts says on HyQ and Pfizer Deals
Pfizer’s move is being viewed as a positive for the struggling San Diego-based biotech, which in 2012 witnessed U.S. regulators reject an investigational immune-deficiency treatment (called “HyQ”) being developed jointly with Baxter International (BAX). The FDA’s Center for Biologics Evaluation and Research (CBER) division has expressed concerns regarding the potential long-term risk of anti- rHuPH20 non-neutralizing antibodies associated with the use of Halozyme’s recombinant enzyme.
With accumulated net losses of $294.2 million through September 2012, an annual cash burn rate that exceeds $60 million, and few prospects for near-term milestone payments (only two collaborative products are currently in the regulatory approval process), the $87 million in cash on Halozyme’s balance sheet (raised in a secondary stock offering last February) won’t last much beyond 2013. Consequently, this rekindled optimism for Halozyme and its rHuPH20 enzyme could likely prove as fleeting as a “candle in the wind” (Elton John).