UPDATE: Jefferies Downgrades Halozyme Therapeutics to Underperform on FDA Headwinds

Jefferies reduced its rating on Halozyme Therapeutics

from Hold to Underperform and cut its price target from $8 to $3 following an FDA hold on clinical trials of an important growth driver to the company. Jefferies said, "As expected HyQ gets CRL, but more importantly, FDA puts a clinical hold on rHuPH20 trials for HyQ & Cinryze. Given HALO's value is entirely based on its rHuPH20 platform, this raises significant uncertainty on its future (unlikely additional partnership opportunity, conceivable termination of BAX/VPHM deals). Even if Roche's SC Herceptin/SC MabThera get thru U approval, commercial potential is small from our previous survey data." Halozyme Therapeutics closed at $8.56 on Wednesday.