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Biopharmaceutical company Halozyme Therapeutics (HALO) has entered into a global collaboration and licensing agreement with ViiV Healthcare to further the development of ultra-long-acting medicines for the treatment of HIV.
ViiV Healthcare is a pharmaceutical company created as a joint venture by Pfizer and GlaxoSmithKline. It specializes in the development of therapies for HIV infection.
The agreement provides ViiV exclusive access to Halozyme’s ENHANZE drug delivery technology. In consideration for the license to four molecule targets, ViiV is making an upfront payment of $40 million and may also make development and commercial milestone payments of up to $175 million per target. Additionally, Halozyme may also receive mid-single-digits sales royalties on product commercialization. (See Halozyme stock chart on TipRanks)
The first experiments using the technology are expected to be initiated by the end of 2021 for Cabotegravir to treat HIV. The drug is presently administered at an interval of two months.
Halozyme President and CEO Helen Torley said, “This collaboration demonstrates the potential value of our technology to facilitate rapid, large volume subcutaneous injections of not only more traditional medicines but also long-acting injectables, including small molecules, which in turn may further extend dosing intervals for people taking medicines for the treatment and prevention of HIV.”
Additionally, Halozyme has licensed its technology to 11 pharmaceutical and biotechnology companies. The technology has potential uses in oncology, autoimmune disease, rare disease, and infectious disease.
On June 14, Evercore ISI analyst Michael DiFiore initiated coverage on Halozyme but did not assign any price target.
DiFiore highlighted Halozyme’s recent performance and remained positive on the company’s expected growth in royalty revenue in the mid-term.
Based on 4 Buys and 1 Hold, consensus on the Street is a Strong Buy. The average Halozyme analyst price target of $55 implies 30.4% upside potential. Shares are up 64.5% over the past year.