Halozyme Therapeutics Inc (HALO)

[rod5247]

"I don't know. That would mean the $$$ HALO makes from the sale of raw PH20 is more per unit than what it makes from royalties. If $25 million made a $billion of HSC, then the ratio of royalties to cost of goods would be about 2:1. That seems more like it. But I have no idea."

Not sure where we are going here. Are you getting revenue, profit, and royalty tied together? Bulk ph20 is sold on a cost plus basis with a small profit that is redacted in the contract. The impression is the profit is very small. Bulk ph20 is not intended as a money maker or a money loser. It is only provided to partners and not for sale to non partners. Royalties are pure profit and not tied to revenue from ph20. Just as an example since we have no way of knowing the terms of the cost plus. Halo recovers its cost and makes 5% gross profit on $25 mil ph20 which when co-formulated produces $375 mil Herceptin sc. Halo makes $18.75 mil net profit on Herceptin sales and $1.25 mil gross profit on PH20 sale.

If Halo can produce a ml of Enhanze for $20 then Roche could produce $1 bil of Herceptin sc with $25 mil ph20. That would be great but I doubt it can be manufactured, processed, handled, shipped etc that cheap.