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A key partnership with Pfizer (NYSE:PFE) positions Halozyme Therapeutics (NASDAQ:HALO) to get traction with renewed interest in its Enhanze technology. The company signed a licensing agreement that calls for collaboration on development and large market distribution of Halozyme's unique subcutaneous biologics based medications. Specifically the deal calls for collaboration for the purpose of developing and commercializing products that combine proprietary Pfizer biologics with Halozyme's Enhanze technology. Enhanze is Halozyme's proprietary drug delivery platform and is based on the Company's patented recombinant human hyaluronidase enzyme (rHuPH20).

Halozyme is a biopharmaceutical firm that develops and commercializes products that target the extracellular matrix for the diabetes, oncology, dermatology, and drug delivery markets. The company's approach is unique, as its development of subcutaneous biologics enable medication to be introduced into a patient's body via skin injections versus a conventional intravenous drip method.

A significant factor for Enhanze is that regulators may take a different path to approval of the drugs, much like that of generic drugs (considerably faster then conventional ones). Reportedly, these drugs would be easier to use and administer, allowing for easier self-medication, a significant difference from IV administered drugs.

As health care costs continue to rise and stress the medical system and patients, safe and self-administered types of drugs are expected to play a significant role in patient treatment in the future. Pfizer has not officially confirmed which products will utilize Enhanze.

Pfizer will use its global resources in commercialization efforts to market products using Enhanze - specifically products that combine the rHuPH20 enzyme and biologics Halozyme, developed for a maximum of six medical applications. Halozyme's $518 million take (milestone dependent) helps the company considerably with an $8 million payment kicking off the deal. Pfizer's obligations are to meet milestones for product development, regulations, and sales, as well as to pay a percent of royalties to Halozyme.

Halozyme has done similar deals with Roche Holding and Baxter International (NYSE: BAX). Halozyme, currently trading at roughtly $7.00, about 50% of its 52 Week High. At a $750 million market cap and with very positive potential and catalysts ahead of it, up would be a logical conclusion.

Source: Halozyme Therapeutics's Key Deal With Pfizer Is Significant