Halozyme Therapeutics (HALO) Surges 5.6%: Is This an Indication of Further Gains?
Halozyme Therapeutics HALO shares ended the last trading session 5.6% higher at $36.36. The jump came on an impressive volume with a higher-than-average number of shares changing hands in the session. This compares to the stock's 11.3% loss over the past four weeks.
Share price rose after the company announced that two of its partners, Roche and Takeda, secured approvals for their respective drugs which will be administered using Halozyme's proprietary drug delivery technology as a subcutaneous (SC, or under-the-skin) injection. Halozyme’s drug delivery technology enables treatment of patients outside the hospital setting, including at a patient’s home, with administrative ease.
Roche secured authorization in the European Union for using a SC formulation of Tecentriq across all indications previously secured by the drug as an intravenous (IV) formulation. Tecentriq IV is currently approved in the EU for three indications – two in lung cancer and hepatocellular carcinoma. On the other hand, Takeda received FDA approval for the SC formulation of HYQVIA to treat chronic inflammatory demyelinating polyneuropathy (CIDP).
This biopharmaceutical company is expected to post quarterly earnings of $0.79 per share in its upcoming report, which represents a year-over-year change of +64.6%. Revenues are expected to be $236.23 million, up 30.2% from the year-ago quarter.
While earnings and revenue growth expectations are important in evaluating the potential strength in a stock, empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
For Halozyme Therapeutics, the consensus EPS estimate for the quarter has been revised marginally lower over the last 30 days to the current level. And a negative trend in earnings estimate revisions doesn't usually translate into price appreciation. So, make sure to keep an eye on HALO going forward to see if this recent jump can turn into more strength down the road.
The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>>
Halozyme Therapeutics is a member of the Zacks Medical - Biomedical and Genetics industry. One other stock in the same industry, Seres Therapeutics MCRB, finished the last trading session 2.5% higher at $1.23. MCRB has returned 6.2% over the past month.
Seres Therapeutics' consensus EPS estimate for the upcoming report has remained unchanged over the past month at -$0.40. Compared to the company's year-ago EPS, this represents a change of +25.9%. Seres Therapeutics currently boasts a Zacks Rank of #3 (Hold).
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Halozyme Therapeutics, Inc. (HALO) : Free Stock Analysis Report
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