Why Halozyme Therapeutics Inc. Shares Jumped

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

What: Shares of Halozyme Therapeutics  (NASDAQ: HALO  ) , a biopharmaceutical company focused on developing human enzymes for clinical benefit purposes, jumped as much as 15% following the official launch of Roche's (NASDAQOTH: RHHBY  ) Herceptin SC in Europe.

So what: Why does this matter? Because Roche's newly approved subcutaneous injection of Herceptin -- which can be given in a fraction of the time that the standard IV can -- utilizes Halozyme's recombinant human hyaluronidase. As such, the official launch of Herceptin SC in Europe triggered a $10 million milestone payment from Roche to Halozyme, bumping Halozyme's net cash position up to $55 million (based on its most recent quarterly filing).  

Now what: Everyone loves a good milestone payment, but a $150 million market cap boost for a $10 million payment might be a bit steep. Expectations are high surrounding Herceptin SC -- as they should be -- since the drug could remarkably increase patient convenience. Now we need to see how well its launch is actually executed before we get too excited. I'd certainly advocate adding Halozyme Therapeutics to your watchlist, but as an investment at these levels I still see plenty of questions that are only going to be answered by watching and waiting a few quarters to see if sales take off.

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  • Report this Comment On September 27, 2013, at 9:40 PM, fezziwig2008 wrote:

    You are lost- I suggest you ask yourself why HALO went up 8% on Thursday- The session Befor the HerceptinSC milestone was announced. Answer- PegpH20- new survival data was previewed on Twitter and Yahoo- Seems when one compares the

    2013 ASCO data from Celgene and Halozyme, Abraxane has a 23% ORR with Gemcitabine in Pancreatic Stage 4B and PegpH20 has a 42% ORR-goes up to 64% in high hyaluron tumors- in the samd cohort. You might want to look into Peg before new data is released on Monday at 8:00AM EST.

    Peg is 100% owned by HALO and Gemcitabine is generic. Peg has begun Ph2 trials with Abraxane-Gem and will soon start Ph2 trials with generic Folfirinox- modified to reduce previous adverse effects. The cure is closer.

  • Report this Comment On September 29, 2013, at 11:15 PM, fezziwig2008 wrote:

    Update- CEO Announced on 9/27 a Ph2 trial of PegpH20 and MODIFIED Folfirinox- most likely modified to reduce adverse effects of this potent combination of generics that had a medial survival of almost a year by itself vs 8.5 mos with Abraxane-Gemcitabine. Halozyme must feel that PegpH20 will add so much to its effect, that a reduced strength Folfirinox plus peg will offer the best safety and potency. The future looks more hopeful for those with pancreatic, colon, bladder, and breast cancer- thanks to Halozyme.

  • Report this Comment On September 30, 2013, at 3:13 PM, fezziwig2008 wrote:

    The Poster at ESMO Was A Major Victory for Pancreatic Ca Patients and Halozyme- There is a new Rx in the world that works better in combination with Gemcytabine Than Any other Combination Therapy AND There is a new Diagnostic Tool that ID's who will benefit most from this therapy and who is most likely to metastasize. Hyaluronic Acid IS a marker of tumor metastasis and Halozyme's new Diagnostic tool ID's Hyaluron. Some Tweets from this morning-

    halo Overall Survival for Peg/Gem was 17 1/2 Mos in the High Hyaluron Pancreatic Ca Cohort and 6 mos in Low Hyaluron Cohort-Abraxane 8.5

    $halo- That 17.5 Mos Figure for PegpH20 in High Hyaluron Pts Beats Folfirinox by 6 mos- PLEASE HALO APPLY for BREAKTHROUGH Status with FDA!

    $halo -Look at the Difference Hyaluron Content Means to Survival-17.5 vs 6 mos-HALO Dx'tic tool will be in Every Cancer Workup soon-?ownrshp

    $halo 2 points-1.FDA appvd Abrax w 1/2 the O Surv

    2. Folfirnox Wowed the Onc World w 6 mos Less OS than PEG-GEM in Hi Hyal Panc CA- Peg Wins

    $halo Important-There are 4 Patients Still Alive and "On Study" in PegPh1b- Every Day They Live The Numbers for Overall Survival Get Better!

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