Halozyme Refocuses R&D Efforts, Cuts Staff

Halozyme Therapeutics, Inc. has implemented a new drug development strategy and plans to decrease research relating to the discovery and preclinical development of new compounds. The company will focus resources on its advanced programs and partnership activities in 2011 and 2012, resulting in layoffs of approximately 25% of its workforce.

Halozyme will continue development of its Phase II Ultrafast Insulin, Phase I PEGPH20, and preclinical HTI-501 programs. The company expects to incur a one-time charge in the fourth quarter that will be mostly offset by reduced payroll expenses during the quarter.

“A decade’s worth of investment in discovery and preclinical research from 2000 to 2010 has resulted in two FDA-approved products, three late-stage product candidates with Roche and Baxter, and three exciting proprietary programs with best-in-class or first-in-class potential,” said Jonathan Lim, M.D., president and chief executive officer. “This development-focused strategy, combined with our partners’ achievement of their publicly stated launch timelines, could enable Halozyme to achieve cash flow breakeven by as early as 2013. I want to express my deepest appreciation to everyone for their hard work, passion, and commitment to help Halozyme reach this advanced stage of development.”