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One of our "future winners" is Halozyme Therapeutics (HTI), a biopharmaceutical company that develops and commercializes recombinant human enzymes for the infertility, ophthalmology, and oncology communities. The company's product development portfolio, including expected near- and long-term product offerings, is based on intellectual property covering the family of human enzymes known as hyaluronidases.

The company's first hyaluronidase enzyme, recombinant human PH20 or rHuPH20, is the platform for three different products, including a medical device, a drug enhancement agent, and a therapeutic biologic.

On December 5, 2006 HTI and Roche announced an agreement to apply the company’s proprietary technology to Roche's biological therapeutic compounds.

Investment Analysis

The company has fallen under the radar screen of analysts although current investors have recently been rewarded by the large appreciation after the Roche deal was announced. The technology platform appears sound and multifaceted reducing the development risk, regulatory risk is moderated by there being 510K approvals as well as full drug approvals, management is experienced and the therapeutic and technology diversity is attractive to us. The company was founded in 1998 and became publicly traded in early 2004 through a reverse stock deal. The stock price is now above its entry price. Institutional holders amount to less than 30% reflecting the unknown quality of this stock. We believe it is a good speculative stock for 2007.

HTI 1-yr chart

HTI

Disclosure: Author has no position in HTI.

Source: Eye on Halozyme Therapeutics