JMP Securities Boosts Halozyme Price Target On 'Long-Term Value'

In a report published Thursday, JMP Securities analyst Jason N Butler maintained a Market Outperform rating on Halozyme Therapeutics, Inc. HALO, while raising the price target from $17 to $21, after the company announced a new partnership. Halozyme is a platform technology company aiming at facilitating the passage of drugs through the intercellular matrix, both potentially increasing subcutaneous bioavailability and more rapid pharmacokinetics. The company's lead internal candidate is PH20- insulin, an ultra-fast acting insulin being developed as a novel mealtime insulin. Halozyme announced a new partnership for its ENHANZE technology with Abbvie. The deal includes an upfront payment of $23 million and milestone payments of up to $1.30 million for each of the up to nine potential collaboration targets plus tier based royalties on future product sales. "We view this as positive for Halozyme as the company continues to add licensing partners to leverage its ENHANZE technology platform," analyst Jason N Butler mentioned. The company's stock valuation is expected to be driven by the benefits derived from its multiple partnerships related to ENHANZE. "While there is limited visibility into the majority of targets within the collaborations, we believe that in totality they represent meaningful long term value and upside to our current royalty projections," Butler added. Halozyme had previously entered into licensing agreements with Roche Holding Ltd RHHBY, Baxter International Inc BAX, Pfizer Inc PFE and Johnson & Johnson JNJ and earning royalties from them.