Halozyme Therapeutics to cut jobs by 25 percent

Biopharmaceutical company Halozyme Therapeutics Inc said it will cut its workforce by about 25 percent as it plans to decrease research relating to the discovery and preclinical development of new compounds.

The company said it will focus on its advanced programs and partnership activities in 2011 and 2012 and sees a one-time charge in the fourth quarter related to the job cuts.

Halozyme will continue the development of its insulin product, Ultrafast Insulin, which is currently in mid-stage trials and the preclinical HTI-501 programs.

HTI-501 is an injectable human enzyme that has been shown to locally break down the collagen fibrils and is expected to be used as an aesthetic medicine.

Halozyme said the changes will not impact previous net cash burn outlook of $40-$45 million for 2010.

Shares of California-based Halozyme which have gained about 13 percent since its quarterly results in May closed at $7.98 Monday afternoon on Nasdaq. They touched a high of $8.16 earlier in the day.

(Reporting by Rajarshi Basu in Bangalore; Editing by Jarshad Kakkrakandy)