Halozyme Therapeutics Inc (HALO)

[rod5247]

Let me start a with disclaimer: based on numbers we have without exact contract details and assuming milestones are equal for each target.

The bird in the hand is the increased milestone potential, many, many years before royalty potential.

Roche: $47 million per target.
Pfizer: $84 million per target
Jannsen: $113 million per target

If Pfizer and Jannsen do not get in the clinic, they are worth nothing more than what we have already received.

I am more confident in Peg getting approved and a blockbuster than I am in Pfizer and Jannsen paying royalties in 7+ years on 11 targets.

You may be correct about having enough cash if royalty ramp is high and fast but we don't know that yet. Halo can never have enough cash imo. They are burning over $80 million each year without multiple Phase II trials or any Phase III. I do not want another offering and the only way to prevent that is with new deals, and existing deals going in the clinic until existing royalties cover cost.

Enjoy the discussion.