H.C. Wainwright has reaffirmed its positive stance on Halozyme (NASDAQ:HALO) Therapeutics (NASDAQ: HALO), maintaining a Buy rating and a $65.00 price target for the stock.
The endorsement comes in the wake of Halozyme and its partner Roche announcing the U.S. approval of Tecentriq Hybreza, a subcutaneous form of Tecentriq (atezolizumab), on Thursday.
The new formulation utilizes Halozyme's hyaluronidase (ENHANZE) technology, enabling the drug to be administered in approximately seven minutes, a significant reduction from the 30-60 minutes required for the standard IV infusion.
The approved use of Tecentriq Hybreza in the United States covers all existing adult indications of IV Tecentriq, which includes treatments for various cancers such as lung, liver, skin, and soft tissue.
The approval was granted slightly ahead of the expected Prescription Drug User Fee Act (PDUFA) goal date of September 15, 2024. H.C. Wainwright notes that this early approval did not come as a surprise.
H.C. Wainwright's analysis indicates a forecast for peak sales of Tecentriq Hybreza to reach approximately $5.6 billion by 2032. The projection is considered conservative by the firm, especially given that Roche reported sales of around $1 billion for the second quarter of 2024, which suggests an annualized rate close to $4 billion.
Additionally, H.C. Wainwright has made a slight adjustment to its financial model for Halozyme. The revision accounts for a tempering of expectations for third-quarter 2024 revenues under collaborative agreements. This change reflects an observed higher-than-anticipated pull-through of partner revenues in this category, which boosted second-quarter 2024 revenues from collaborations.
InvestingPro Insights
As Halozyme Therapeutics (NASDAQ:HALO) garners positive sentiment from H.C. Wainwright, investors may find additional key metrics from InvestingPro valuable. The company's market capitalization stands at a robust $7.67 billion, reflecting its significant presence in the biotechnology industry. With a P/E ratio of 23.24 and an adjusted P/E of 24.02 for the last twelve months as of Q2 2024, the company exhibits a balance between its earnings and market valuation. This is particularly noteworthy given the company's PEG ratio of 0.44 during the same period, suggesting potential for growth when considering its earnings trajectory.
InvestingPro Tips highlight that Halozyme has a perfect Piotroski Score of 9, indicating strong financial health, and management has been actively repurchasing shares, which could signal confidence in the company's future prospects. With six analysts having revised their earnings downwards for the upcoming period, investors should remain vigilant about the company's performance forecasts. However, it's worth noting that analysts predict the company will be profitable this year, and it has been profitable over the last twelve months. For a more comprehensive analysis, InvestingPro features additional tips to guide investment decisions.
Halozyme's recent price performance has been impressive, with a six-month total return of 46.41% and a year-to-date return of 63.8%. Such strong returns underscore the market's positive reception to the company's developments, including the U.S. approval of Tecentriq Hybreza. The InvestingPro Fair Value estimate of $63.37 suggests that the stock may still have room to grow relative to recent analyst targets.
For those wanting to delve deeper into Halozyme's financials and future outlook, further InvestingPro Tips are available, providing a well-rounded perspective on the company's potential as an investment.
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