Matteo Colombo Halozyme Therapeutics ( NASDAQ: HALO ) pared gains in the premarket Friday after Piper Sandler downgraded the biotech despite its decision to increase 2024 guidance, which led to a sharp rally in its shares in the previous session. Citing an EU patent win related to its Enhanze drug delivery technology, San Diego, California-based Halozyme ( HALO ) increased its revenue and earnings outlook for 2024, sending its stock to a new 52-week high on Thursday. The new patent delays an anticipated decline in royalties linked to EU sales of cancer therapy Darzalex SC, developed by Johnson & Johnson ( JNJ ) and Genmab ( GMAB ) using Halozyme’s ( HALO ) Enhanze technology.
Arguing that his estimates already reflect the outlook for HALO’s Enhanze business, Piper analyst Joseph Catanzaro downgraded the stock to Neutral from Overweight. “While the issuance of a new patent and the EU Darzalex royalty stepping back up to its full rate (i.e.
, mid-single digit) through March 2029 was a pleasant surprise, shares have run into our PT even as we layer in these updates and take our PT higher,” Catanzaro wrote. However, the analyst raised his price target to $51 from $48 per share to reflect, among other things, higher worldwide royalty revenue linked to Darzalex sales in 2025. More on Halozyme Therapeutics Halozyme Therapeutics, Inc.
(HALO) Q1 2024 Earnings Call Transcript Halozyme Therapeutics, Inc. 2024 Q1 - Results - Earnings Call Presentation Halozyme's Strategic Partners.
