Halozyme Therapeutics' stock plummeted 9.72% during intraday trading on Wednesday, marking a significant decline for the biopharmaceutical company.
The sharp drop followed the company's report of an unexpected fourth-quarter loss, swinging to a loss of $141.6 million, or $1.20 per share, compared to a profit a year earlier. Analysts had expected earnings per share of $1.88. The loss was primarily driven by $284.9 million in acquired in-process research and development expenses related to Halozyme's acquisition of Surf Bio in December.
Despite the loss, revenue climbed 52% to $451.8 million, beating analyst estimates, and the company maintained its full-year outlook. CEO Helen Torley stated the Surf Bio acquisition broadens the company's drug delivery portfolio and diversifies long-term royalty revenue opportunities.