After a 27% Plunge, Is Halozyme a Bad News Buy?

Halozyme Therapeutics, Inc.'s stock plummeted by 27% on Friday after management reported that it had halted enrollment and dosing in its phase 2 pancreatic cancer trial of PEGPH20 as a "precautionary measure." The trial was halted at the request of an independent Data Monitoring Committee, or DMC, based on a possible observed difference in thromboembolic (blood clot) events among study participants in the PEGPH20 arm.

Halozyme's management has not released additional information as of this writing, with CEO Dr. Helen Torley merely noting that "We will be providing additional information to the DMC as quickly as possible so they can complete their assessment and we can determine next steps."

In this segment of Friday's market checkup, Motley Fool health care analysts David Williamson and Michael Douglass discuss Halozyme's halted enrollment, the company's overall position, and whether this is a good opportunity to invest in the stock.

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  • Report this Comment On April 06, 2014, at 12:35 PM, baloneyspotter wrote:

    Wow, another pathetic analysis (with all due respect) - this is not the main future revenue driver for the next year to 2. Have you looked at what the analysts have said about that, "only a few bucks on the price" - and they have now several drugs w/ Roche on the market which could bring in many millions in royalty very soon. They add a substance to intravenous drugs allowing them to be given subQ, saving much time to get into the blood stream. So, per this writer, do not invest in any biotech names, even if the bad news is on early development and they have a diverse pipeline. In fact, per this writer, if they spend more than $10 million per year, that must be too much?

  • Report this Comment On April 06, 2014, at 4:55 PM, derkman wrote:

    Sad analysis from these fools. How can a person make so many mistakes and still call themselves a fool? Go back and do some research that is newer than last year and then tell us why this halt in the study isn't very important to HALO. You can thank me later.

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Michael Douglass

As the Motley Fool's Health Care Editor/Analyst, I focus on all things health care -- although my greatest interest is in the megatrends reshaping the American health care system, including the Affordable Care Act, Accountable Care Organizations, a shifting regulatory landscape, and the new drug discoveries fundamentally changing disease management and treatment.

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9/1/2015 3:59 PM
HALO $16.62 Down -0.84 -4.81%
Halozyme Therapeut… CAPS Rating: ****