PropThink: Scale Into HALO In Front Of Roche 'Investor Day'; Insiders Still Buying
(Thomson Reuters ONE) -
Shares of Halozyme Therapeutics (NASDAQ:HALO) have recovered nicely since the
stock was cut in half on news related to the company's partnered products with
Baxter (NYSE:BAX) and ViroPharma (NASDAQ:VPHM). Since HALO's low on August 2nd
(previous coverage here), the stock has risen 47%, as investors realized that
the BAX and VPHM products have potential to get back on track, and more
importantly, that partnered products with Roche (OTC:RHHBY) were unaffected by
the FDA's request. Wall Street Analysts have an average price target for HALO of
$8, most of which is based on the Roche-partnered product candidates using
discounted cash flow analysis. Importantly, Roche will host its 'Investor Day
2012' in London on Sept. 5th, and it is likely that comments will be made on the
progress of SC-Herceptin and SC-Rituxan (MabThera), the two primary products
partnered with Halozyme. Notably, these line extensions are extremely important
to Roche, as they are being developed to protect roughly $11 billion in combined
sales of these blockbuster cancer drugs. SC-Herceptin is anticipated to launch
in the first half of next year in Europe, and SC-Rituxan in late 2013 or early
2014.
HALO has stated that it could move to break even status next year as a result of
revenues from these products. While the stock has recovered nicely, HALO is
still a long way from its highs and positive comments from Roche next week could
move the shares to the next level leading some analysts to raise price targets.
Adding to the confidence in the value at these levels, SEC documents show that
on August 28, 2012 HALO Director Kenneth J. Kelley purchased 20,000 shares for a
total value of $113,974. This kind of direct insider buying is usually a good
sign that a stock is undervalued. Investors can take advantage of the still-
depressed price of HALO's stock, so look for the HALO trade in front of Roche's
Sept. 5th Investor Day to really come alive after Labor day.
Click here to see this - and more - at PropThink.com.
About PropThink
PropThink is an intelligence service that delivers long and short trading ideas
to investors in the healthcare and life sciences sectors. Our focus is on
identifying and analyzing technically-complicated companies and equities that
are grossly over or under-valued. We offer daily market coverage, weekly feature
stories, and a newsletter to investors who subscribe on PropThink.com. To learn
more visit us at http://www.propthink.com.
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Source: PropThink via Thomson Reuters ONE
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Datum: 29.08.2012 - 15:06 Uhr
Sprache: Deutsch
News-ID 178690
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