The upward climb of Halozyme Therapeutics (NASDAQ:HALO) is now something to witness. Helping that climb is news of late is that BMO Capital Markets delivered a positive element via an upgraded outlook from Neutral to Outperform. The price target was raised from $4.00 to $12.00 per share.
On the radar of the company is a potential product commercialization in a joint effort with Roche (RHHBY.OB). Roche has a pending EU approval called SC Herceptin, a promising cancer treatment with blockbluster revenue potential. The good news is that SC Herceptin is delivered using Halozyme's subcutaneous delivery technology. A second quarter event is anticipated. Roche is also planning to use Halozyme technology for its SC MabThera product on the table for a year end approval tract.
Other very beneficial deals include partnerships with ViroPharma (NASDAQ:VPHM) and Baxter (NYSE:BAX) which will use Halozyme technology with their Cinryze and Gammagard products to better their administration process with patients. Well publicized to-date is also the company's significant deal with Pfizer (NYSE:PFE) to enhance up to 6 compounds with HALO's technology.
Halozyme is currently at $8.20, up from $7.00 on Jan 3, a notable climb to pay attention to. More significant than just the current known catalysts are that this technology may be far reaching and represent a major landscape change in the drug administration process. It could become mainstream.
On a cautionary side, there was some issue with safety regarding Halozyme's subcutaneous delivery technology in 2012 regarding regulators reviewing the Roche product. These concerns have been muted as reportedly Roche is using a newer generation of the Halozyme product. Pfizer reportedly also conducted significant testing and to date, has reported no issues.
Going forward some risk may be apparent as competitive forces may develop like technology products and also partner with big pharma firms and strike deals accordingly, but for now, these factors do not seem to be a factor.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.