Halozyme Therapeutics Inc (HALO)

[friendofthedevil]

Thanks, Rod. Very hopeful comments from Baxter's CFO, Hombach and Baxter's Pres of BioSci Division, Hantson, just now.

Notes on what I heard:

Until the Georgia facility comes on line, they are shooting for 6-8% annual growth in the IgG business through partner, Sanquin. They hope to be up to 16% growth by 2018 when the Georgia facility is at full production.

They are "really excited" about HyQvia. discussing label with the FDA now and expect a decision "in the next few weeks."

Morgan Stanley questioner suggested it looked like the FDA would approve with possible minor label adjustments.

HyQvia allows them to move from a model where Ig therapy is commoditized to one of differentiation. They believe moving from OP SQ at 3-4 sticks per week to one per month "can transform" home therapy. They believe HyQvia will allow them to "grow market share."

In a response to a question about why European sales are starting off slow: "We have a pricing strategy." Only launched in a few countries.

Depending on label, they hope for "aggressive market share penetration" in U.S. HyQvia studies were done in U.S. and they have good support from the 'KOLS" (sp??) and the medical community. The value to patients is recognized and will support premium pricing.

Speculating: My impression is still that so long as IgG is in relative short supply (until Georgia facility is on-line), Baxter will grow HyQvia only as much as they can obtain premium pricing, which may slow conversion to the new product. After 2018, it seems they would then use their "premium product" to go after market share more aggressively and then Halozyme could expect a ramp up in revenues.