Halozyme Therapeutics Inc (HALO)

[XenaLives]

Searching through the archives - I'm impressed with the DD here :)

Question about HyQ:
In the recent IBD article it became clear to me that HyQ might be a really big deal for HALO after reading this little paragraph:


Quote:Baxter Q2 Results Mixed As Wall Street Eyes Pipeline
By AMY REEVES, INVESTOR'S BUSINESS DAILY
Posted 07/18/2013 04:41 PM ET

Medical-products giant Baxter (BAX) reported a mixed second quarter Thursday, and the stock inched up to a new high above 74 before ending the day flat near 73, as the company prepared for some major changes over the next year.

Baxter International said sales rose 3% over the year-earlier quarter to $3.67 billion, a hair below analysts' $3.7 billion consensus, according to Thomson Reuters. But profit rose 4% to $1.16 a share, beating estimates by 3 cents.

Baxter is in the process of buying Swedish dialysis company Gambro for $2.8 billion, which complicated its full-year guidance. Including Gambro, it expects 7% to 8% sales growth; excluding the impact of the buyout, it's looking at 3% growth. It guided EPS at $4.62 to $4.70, in line with previous guidance and with analysts' expectations.

The failure to raise profit guidance despite the Q2 beat worried some analysts, but the company is in what Ludwig Hantson, chief of Baxter's bioscience unit, called "a transition year" as it not only digests Gambro but prepares for some big new product launches.

The one that got the most attention on the post-earnings conference call was HyQvia, a long-acting version of Baxter's Gammagard, designed to replace immunoglobulin in patients with blood cancers or immunodeficiency syndromes. Baxter and its biotech partner Halozyme Therapeutics (HALO) won approval for HyQvia in the European Union in May, and are beginning to roll out the product in Germany and Scandinavia. The companies are still ironing out some regulatory issues with the U.S. Food and Drug Administration, but company executives say they hope for a mid-2014 launch.
Read More At Investor's Business Daily: news.investors.com/technology/071813-664262-baxter-earnings-beat-estimates.htm#ixzz2ZmoVjzsP



It was a little bit startling to me that BAX analysts are focusing so much attention on HyQ. Since BAX is such a gigantic behemoth, the level of concern among analysts about HyQ's progress has made me stop and rethink what this product means for HALO. Frankly, I had have given it little thought over the last several years because HALO's relationship with Baxter has been fraught with nothing but frustration and suspicion. If I recall correctly, BAX was HALO's first big partner, pre-dating the Roche blockbuster deal, and HALO management made some rookie mistakes in negotiating the Baxter deals. But now with HyQ actually looming as a big deal in the eyes of the analyst community, as evidenced by the quote above, I've been wondering if anyone here has a handle on the income prospects from this deal once it finally comes to fruition, first in Europe and then finally, here in the US. Any thoughts on the numbers this might bring to HALO's bottom line?
Thanks!
-Fritz

See post replied to for the original, Thanks Fritz.