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Halozyme Therapeutics, Inc. (HALO)

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
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35.56+0.05 (+0.14%)
At close: 04:00PM EST
35.55 -0.01 (-0.03%)
Pre-Market: 07:21AM EST
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  • P
    Patrick
    A couple of comments. First, I guess investors don't take Zacks very seriously cause today they placed HALO on their strong sell list. At the time I saw the article, HALO was up .90. didn't finish that high but still finished in the green on a very red day.
    Secondly, the longer HALO stays undervalued like it is, I'm thinking that they become a buy-out candidate. With healthy, positive cash flow, increasing royalties, many opportunities in the pipeline, they could be very attractive for another platform company. I could see $55-$60 at the moment.
  • S
    Sean 007
    Listen to the JP Morgan presentation posted on Halozyme’s website.

    In it Helen said (at 1 minute 45seconds into presentation): “the 2022 guidance and year-over-year comparison is impacted by the ONE TIME REVERSAL of the tax valuation allowance event which occurred in the 3rd quarter of 2021 which results in a few dynamics…. 2022 is the first year of tax expense which we project to be $0.55-$0.60 per share this year.”

    At 2 minutes 50 seconds, she said: “the year-over-year comparison is impacted by BOTH the one time income of $0.97 per share in 2021 which was the result of the tax valuation allowance reversal AND ALSO the first year of tax expense of $0.55-0.60 per share”

    This $0.55-0.60 is about the exact amount in the difference between the street consensus vs halo’s guidance for 2022.

    The street missed this important nuance. It will take a day or two for the market to digest this info and reflect the otherwise super-positive updates Helen gave us FOR THE FIRST TIME yesterday:

    1) guidance on royalties beyond 2027 and Debunking the naysayers’ $1 billion as peak royalties for halo, Slide 10 and 21 show royalty growth to well over $1 billion by 2031.

    2) New, higher yield ENHANZE® API

    3) New rHuPH20, with extended room temperature stability, and with patent protection to 2032 in Europe and 2034 in the US

    4) At 25 minutes, 26 seconds, she debunked the naysayers’s biosimilar/patent -cliff affect on royalties: “this will not be the case and indeed it is not even possible with our Enhanze portfolio.” She then gave several reasons for this conviction. It is worth your while to listen to the facts she shared.

    The 2022 street consensus is old and likely does not factor in other non-operational expense of paying for the share-buybacks (I don’t know how much will come from the cash on balance sheet vs. from revenue. Sounds like Helen wants to keep some fresh powder)
  • J
    Joseph
    I have a few questions for the resident biotech experts here, as follows:

    1) On future sales of some or all Wave 1 and Wave 2 co-formulated products, does HALO intend to replace old lower-yield ENHANZE® API (my term) with new higher-yield ENHANZE® API? If so, will the FDA require more clinical trial(s) to determine rHuPH20 equivalency(ies) of the substitution(s)? If so, will HALO pay for those trials?
    2) Same questions, except with respect to old rHuPH20 (again, my term) without extended room temperature stability, versus new rHuPH20, with extended room temperature stability?
  • S
    Sean 007
    Did the street’s 2022 not factor in the taxes Halo will have to pay? Is that why street estimate was higher?
  • S
    Sean 007
    JMP Securities reiterated a Buy rating on Halozyme today, with a price target of $55.00.
  • M
    Mathew Fuji
    This is not an easy stock to trade in/out. It’s a mature company to invest in long term. The buybacks are really not intended to artificially increase stock price. I knew and had posted also that the buybacks can transiently push the price up but the buying power isn’t enough to keep prices up and it shouldn’t be doing that either. Otherwise the company and we longs end up buying back inflated stock.
    The buyback is an instrument to acquire market discounted stock FOR THE LONG RUN (LONGS!!).
    What is now happening for a decline is
    1- Some funds and maybe retails who have a sub $20 average pulled out?
    2- I doubt that anyone is brave to short but potentially there is some positions opened that plan to cover as low as possible
    3- General market trend for this category (includes RGEN)

    So all of these give the company an opportunity to acquire stock cheap. Then when they have something substantial to reveal which I can almost guarantee (to myself) will happen in 2022 the three groups that I listed above + others on the sidelines + momentum chasers will scramble to buy and cause an explosion to the upside. Unfortunately YOU won’t be told when that’s happening!!

    So in nutshell the buyback shouldn’t be construed as a reason for SHORT TERM BUYING!! Unless you are a skilled trader and have sufficient time for trading.
    But use this dips post buyback news to buy because you KNOW that the company stands behind their stock and there is POTENTIAL BUYING ENERGY BUILDING UP (to be released on material developments) during this dip.
    If you were scared to buy during the last dip to $30 this is NOT a stock for you lol Move on.

    That’s why I always want the stock to drop hard after a buyback announcement (I did post that) because that’s a double whammy for the longs
    1- A greater decrease in the outstanding
    2- We longs are more confident to add

    I also had predicted that the Bonker types will go sour soon. I am now waiting for couple more to go sour soon hahaha
    Bullish
  • T
    ThomasG
    Why is halo on sale? 14 PE, 30% growth, and people are riveting to so called high growth tech stocks, no cash flow at all.
    Bullish
  • J
    Joseph
    Google: “argenx Highlights Strategic Priorities for 2022”

    For convenience, I’ve summarized the potential pertinence to HALO, as follows:

    Topline data for SC efgartigimod expected in:
    * Q1 2022 for gMG (neuromuscular)
    * Q4 2022 for pemphigus foliaceous and vulgaris (dermatology)
    * Q1 2023 for CIDP (neuromuscular)
    * Q1 2023 for ITP (dermatology)

    Announced four new efgartigimod indications to be initiated in 2022, as follows:
    * membranous nephropathy
    * lupus nephritis
    * Sjögren’s syndrome
    * COVID-19 mediated postural orthostatic tachycardia syndrome (POTS)

    Efgartigimod IV approvals expected in:
    * Q1 2022 in Japan
    * Q2 2022 in Europe

    Efgartigimod IV filings for approval expected in:
    * Q1 2022 in Canada
    * Q2 2022 in Israel
    * Mid 2022 in greater China

    I can’t help but thinking that mutiple indications spanning multiple countries could do wonders for HALO’s future milestones and royalties, assuming all goes well with the coformulated product.

    Thoughts?
  • T
    ThomasG
    Bought more, put money where my mouth is. Strong conviction. What’s not to like, low R&D spending, no fda risk, strong cash flow, subscription like recurring revenue…
    Bullish
  • J
    Joseph
    14726 +/- on the Nasdaq is the level to watch this afternoon IMO. That’s its 200 DMA. Should we close below that today, with Monday’s market close, then it will start to get real interesting next week.
  • T
    ThomasG
    Buying halo 2023 Jan 40 LEAPS call, wide bid and ask, hopefully get filled. Halo is selling a platform, it has its own ecosystem
    Bullish
  • J
    Joseph
    Would love to see a year end close above the 200 DMA, currently at ~ 41.18. I’m encouraged by the positive RSI trend, currently at - 67.

    Best wishes to all longs for a prosperous 2022.
  • B
    BONKEN
    I think Halo tested TA support price very well. Longs can rest better , just hold relax and harvest future gains. I am not selling any shares to invest in techs. Risk Reward balance has shifted heavily toward HALO instead of FANGS after Dec. Fed minutes release yesterday.
  • M
    MemphisBBQ
    Fasten your seat belts and your wallet.
  • J
    Joseph
    My $0.02. On December 9, HALO announced its buyback at 4:01 PM. One minute before that positive news broke, HALO closed at $31.82. Today, only 18 trading sessions later, HALO closed at $38.25. That?s 20.2% higher than where we were before the buyback was announced. If, on December 9, readers of this MB would?ve been told that, over the next 18 trading sessions, HALO will have appreciated, on average, approximately 1.0% PER DAY, I doubt anyone on this board would?ve believed that prediction. I?d rather look for reasons why the glass is half full.At this point, I?m waiting to see what HALO?s 2022 financial guidance will reveal. If last year was a guide, that guidance should be coming next week.Meanwhile, I think Elaine is buying back the #$%$ out of HALO, every day, at the close.
  • S
    Sean 007
    Today from Motley Fool:

    from 2 Game-Changing Stocks to Invest $1,000 in Right Now

    Do not miss out on these two fundamentally strong stocks.

    Key Points
    Marvell Technology is reporting robust demand for its chips in the data center and automotive markets.
    Halozyme's ENHANZE drug delivery platform has significant growth prospects in the coming years.

    Motley Fool Issues Rare “All In” Buy Alert

    The U.S. equity market breathed a sigh of relief on Dec. 16 after the U.S. Federal Reserve disclosed its plans for reduced monthly bond-buying and increased interest rates for 2022. The central bank's aggressive stance on managing the stickier-than-expected inflation can prove to be a major headwind for several growth stocks. Especially those relying excessively on cheap capital. However, fundamentally strong companies with several growth catalysts and robust financial performance could easily withstand those headwinds.

    Companies like Marvell Technology (NASDAQ:MRVL) and Halozyme Therapeutics (NASDAQ:HALO) can prove to be attractive picks for retail investors, even if they have only $1,000 to invest. Here's why.

    Halozyme Therapeutics

    Halozyme Therapeutics is undoubtedly one of the safest biotech picks thanks to its robust revenue growth trajectory and solid margins. The company's proprietary drug delivery technology ENHANZE enables change in the process of treatment for several drugs from intravenous to subcutaneous. This technology helps reduce the drug administration time from several hours to only minutes.

    Since patients can now receive treatment at home instead of in a hospital setting, the ENHANZE platform is playing a major role in reducing overall healthcare costs and the burden of care on patients and caregivers. Halozyme has entered into licensing agreements for the ENHANZE platform with eleven prominent biopharmaceutical companies. ENHANZE is already being used in five commercialized partner drugs, with potential global sales of $22 billion in 2024.

    Royalties (average mid-single-digit percentage of global sales of the partnered drugs) accounted for around 35% of Halozyme's total sales in 2020. With the company expecting Federal Drug Administration (FDA) approvals for more than five additional partnered drugs and more than five products entering phase 3 clinical trials, royalties are expected to account for around 60% of its total revenue. Halozyme has projected its royalty revenue to grow annually at a compound annual growth rate (CAGR) of 40% from $89 million in 2020 to around $1 billion in 2027.

    The pharmaceutical industry is rapidly opting for antibody-based drugs over small-molecule oral therapies. Halozyme stands to benefit from new collaboration agreements as well as new drug-development programs. These would be an addition to the company's current projections for royalties. The company also expects co-formulation patents filed by partners to significantly extend the royalty period beyond 2024 in Europe and 2027 in the U.S.

    Unlike many biotech companies, Halozyme boasts strong financials. The company's trailing-12-month revenues are up 132% year over year to $463 million, while net income soared by 1,800% year over year to $409.1 million. With the share of royalties (recurring revenue) as a percentage of the total revenue expected to grow, the company will also witness a solid improvement in overall revenue visibility.

    Halozyme also has a very strong balance sheet, with $815.9 million in cash and cash equivalents, and $879.1 million in debt at the end of Q3 (ending Sep. 30, 2021). Holding a solid product offering, improving financials, and a robust balance sheet, the stock is well-positioned to grow rapidly in the coming years.
  • S
    Sean 007
    Nothing to see here, so boring:
    1) halo’s partner, VIIV got FDA approval
    2) Halo’s partner, Argenx got FDA approval
    3) rerating of stock price based on its PEG 0.7, PE 14 and 65% profit margin
    4) all green momentum technicals
    5) investor excitement about CEO’s hints regarding new Psychiatry and neurology partnerships.

    😄😄😄
  • S
    Sean 007
    The Biogen buyout announced today will keep IBB and XBI hot for sometime to come. Halo is on a secular uptrend. IBB and XBI turning green will be icing on the Halo cake.

    When we look back from $70-80 range to these cheap levels around $40’s, you will wish you had more shares
  • J
    Julian
    No idea why it needs to fall with great outlook.. looks way undervalued
  • S
    Sean 007
    The re-rating of this great company/stock is a stepwise process and does not happen overnight. It will take weeks. I hope that the few ardent nay-sayers on this board recognize that Halozyme is still cheap and we are still early in this upward re-rating transition. You can confidently add at these still bargain values.

    Anything below a PE of 25 is a steal for our PEG of 0.7 and profit margin of 65%.
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