HALO Momentum Expected To Continue
(Thomson Reuters ONE) -
The sharp decline in Halozyme Therapeutics (NASDAQ:HALO) last week in fact
presented a major buying opportunity for investors, with the shares up roughly
57% since bottoming on July 2nd (see our previous coverage). Investors bidding
up the shares have told PropThink that the stock was clearly oversold, and agree
that the products being developed with Roche (OTCQX:RHHBY) suggest a valuation
for HALO in the $7-$8 range by themselves. With $102 million in cash ($1 per
share) and no debt; management reiterating on its conference call that it
expects to become profitable in 2014; and statements that HALO has preclinical
data to address the FDA's requests for the Baxter (NYSE:BAX) and ViroPharma
(NASDAQ:VPHM) product candidates; the stock remains a good value and could
continue to trade higher.
While analysts lowered their price targets on HALO due to delays for the BAX and
VPHM products, Wall Street still believes the stock can climb to $9 a share in
the next 12 months. Roche will host its Investor Day on September 5th, and HALO
will host its Analyst Meeting on October 2nd, both of which could act as
catalysts for the shares, particularly with Roche backing that there are no
regulatory concerns with its Halozyme-enhanced product candidates (subcutaneous
Herceptin and subcutaneous Rituxan). Another reason for HALO shares to remain
strong is the company's potential treatment for pancreatic cancer, called PEG-
PH20. At the current share price, the market is assigning little to no value to
this potential blockbuster drug given the focus on later-stage assets.
Importantly, Phase II data is anticipated in 1Q 2013, and if PEG-PH20
demonstrates efficacy in this insidious disease, HALO could hit new highs, with
this becoming a major value driver of the stock.
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Source: PropThink via Thomson Reuters ONE
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Unternehmensinformation / Kurzprofil:
Datum: 08.08.2012 - 15:17 Uhr
Sprache: Deutsch
News-ID 172821
Anzahl Zeichen: 3033
contact information:
Town:
New York
Kategorie:
Business News
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