Piper Jaffray analyst Charles C. Duncan, PhD slashed his price target on Halozyme Therapeutics (NASDAQ: HALO) to $12.00 (from $20.00) but maintained an Overweight rating saying they see solid value for patient investors.
Duncan commented, "Given recent FDA action and our diligence that suggests there may be limited opportunity for near-term update on the safety issue disclosed in early April, we are starting to see more risk than is broadly anticipated in the FDA hold on the PEGPH20 (+ Abraxane) Phase II in pancreatic cancer. Recall that Halozyme first noted a possible imbalance in thromboembolic events and placed a voluntary enrollment stop, which was rapidly followed by a formal FDA hold. We had been waiting for additional details regarding the nature of the observed events, however believe it may be better to err on the side of caution. In addition, although Roche reported 1Q results and sounded (to us) encouraged by SC Herceptin uptake, we believe our SC Herceptin and MabThera numbers may prove too aggressive and are thus reducing our penetration projections by 25%."
Duncan is a piece of work. When the stock plunged 33% on the day the voluntary hold was announced, he said the sell-off was an overreaction, encouraging his clients to buy in the $8-$9.20 price range. Now that the stock has dropped another 13-22%, he says there is "more risk than is broadly anticipated"? Subtext: I f***ked up and don't blame me if you lose more money.
This guy has been so wrong on this stock (like someone else who shall remain unnamed), perhaps this is just one of many contrarian indicators.