On Thursday, H.C. Wainwright reaffirmed a Buy rating and a $65.00 stock price target for NASDAQ:HALO, Halozyme (NASDAQ:HALO) Therapeutics. The endorsement follows the European Commission's authorization of OCREVUS, a treatment for multiple sclerosis, which is expected to enhance Halozyme's royalty revenues.
Halozyme Therapeutics , in partnership with Roche, announced on June 25 that the European Commission had approved OCREVUS (ocrelizumab) SC, co-formulated with ENHANZE, for the treatment of relapsing and primary progressive multiple sclerosis.
The subcutaneous (SC) formulation approved by the EC allows for a 10-minute injection, maintaining the same biannual schedule as the previously approved intravenous (IV) version. This approval was anticipated following a positive recommendation by the Committee for Medicinal Products for Human Use (CHMP) in April 2024.
The successful authorization of OCREVUS SC in the EU represents another win for Halozyme's ENHANZE technology. This platform has been integral to the development of hyaluronidase-coformulated products, distinguishing Halozyme within the market and potentially positioning it favorably against future competition in the field.
The Phase 3 OCARINA II study, which reported positive results in April 2024, served as the basis for the recent approval. These results have been a key factor in reinforcing confidence in the efficacy and commercial potential of ENHANZE-coformulated treatments.
H.C. Wainwright's reiterated Buy rating and price target reflect a positive outlook on Halozyme's growth and revenue prospects, particularly in light of the recent developments and the incorporation of OCREVUS revenues into their financial model. The firm's analysis suggests a robust trajectory for Halozyme's continued success in the pharmaceutical market.
In other recent news, Halozyme Therapeutics has seen a series of significant developments. The biopharmaceutical company has been granted a new European patent for its ENHANZE technology, extending its protection until March 2029. This patent is crucial for the protection of DARZALEX SC, a treatment for multiple myeloma, in the EU market.
Financially, Halozyme reported a strong Q1 with a 15% year-over-year royalty growth for the 15th consecutive quarter. The company projects a 10-19% increase in total revenue for the year, amounting to between $915 million and $985 million.
EBITDA is anticipated to grow by 26-37%, reaching $535 million to $585 million, while non-GAAP EPS growth is forecasted at 28-41%, resulting in $3.55 to $3.90 per share.
Among analyst actions, H.C. Wainwright maintained a positive outlook on Halozyme, reiterating its Buy rating and $65.00 price target following the FDA approval of VYVGART Hytrulo, which uses Halozyme's ENHANZE technology.
Wells Fargo also raised its price target to $58, retaining an Overweight rating. However, Piper Sandler downgraded the stock from Overweight to Neutral, raising its price target to $51. These are among the recent developments involving Halozyme Therapeutics.
InvestingPro Insights
Following the European Commission's nod to OCREVUS, Halozyme Therapeutics (NASDAQ:HALO) is poised to see an uptick in royalty revenues, complementing the company's strong financial performance. InvestingPro Tips highlight that analysts have recently revised their earnings upwards for the upcoming period, signaling confidence in Halozyme's growth trajectory. Moreover, the company is trading at a low P/E ratio relative to near-term earnings growth, suggesting that the stock may be undervalued considering its future earnings potential.
Real-time data from InvestingPro shows a robust 22.41% revenue growth in the last twelve months as of Q1 2024, underscoring Halozyme's expanding financial base. The company's solid gross profit margin of 69.52% during the same period reflects its efficiency in managing costs relative to revenues. Moreover, with a high return on assets of 18.01%, Halozyme demonstrates strong profitability relative to its asset base.
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