Please ensure Javascript is enabled for purposes of website accessibility
Free Article Join Over 1 Million Premium Members And Get More In-Depth Stock Guidance and Research

Why Halozyme Therapeutics Inc. Popped Today

By Brian D. Pacampara, CFA - Mar 31, 2014 at 11:11AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Is this meaningful or just another movement?

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 ( HALO -2.35% ) climbed as high as 10% on Monday after the company announced that the primary endpoint of noninferiority of A1C levels at six months was met for the CONSISTENT 1 trial.

So what: The trial is evaluating Halozyme's Hylenex recombinant when used as a pre-treatment for Type 1 diabetes patients receiving insulin injections, so today's positive results naturally reinforce management's optimism over the product's full sales potential. In fact, the rate of overall hypoglycemic events in the combined treatment groups was reduced by 12% versus the control group, suggesting that Halozyme is in a strong position to help with "one of the key unmet medical needs in the treatment of type 1 diabetes," lead investigator for the trial Dr. Bruce Code stated in a press release.

Now what: Management said it would continue to work closely with the FDA regarding an update to Hylenex. "The data from CONSISTENT 1 will be part of the data package that we will use to seek an update to the Hylenex label with the FDA to include key efficacy and safety data prior to our commencement of promotion for this use," said Halozyme President and CEO Dr. Helen Torley. "We have initiated a dialogue with the FDA to understand the overall data package that will be required and the path to a label update." So while Halozyme might still be too speculative for conservative investors, today's upbeat news, combined with the stock's sluggish price action of late (off about 40% from its 52-week highs), make it an intriguing opportunity for biotech-savvy Fools.

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium advisory service. We’re motley! Questioning an investing thesis – even one of our own – helps us all think critically about investing and make decisions that help us become smarter, happier, and richer.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Halozyme Therapeutics, Inc. Stock Quote
Halozyme Therapeutics, Inc.
HALO
$32.40 (-2.35%) $0.78

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning service.

Stock Advisor Returns
624%
 
S&P 500 Returns
140%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 12/06/2021.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Our Most Popular Articles

Premium Investing Services

Invest better with the Motley Fool. Get stock recommendations, portfolio guidance, and more from the Motley Fool's premium services.