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This might be why halo went down today:
https://www.elektrofi.com/news/elektrofi-janssen-biotech-enter-worldwide-collaboration
However, if you go to clinical trials gov, you will find zero clinical trials with Elektrofi or hyoercon (the name of their platform). Nothing even in phase one. They are 5-7 years away. Plus I don't know how they will get the proteins that are released from their nanoparticles injected into
subcutaneous tissue to travel through hyaluronan and make it to the veins and lymphatic system and therefore into the circulation. It seems to me that they will need halozyme's technology to get through the hyaluronan.
Correction: To the board’s funny and whimsical poster. You call me a halo dinosaur investor but from your reference of when you bought Halozyme (the days of Randall Kirk as the big investor), I can tell you have been a holder even longer than I have. If this is true, congratulations, you have at least quadrupled your money. When Kirk got involved with halozyme, it was trading in mid-single digits. So your chronic complaining about halozyme as an investment which goes back PRIOR to the recent slump is absolute nonsense except for the short term (i.e. 2023).
Even Amazon that you love so much in your message had many bad year. When it crashed in 2000, it took years for it to get back to pervious highs. You clearly don’t understand the difference between investing and trading. BTW no one here has advocated for putting all your eggs in one baket.
Your comments although whimsical and at times funny are rarely more valuable than a court jester’s.
To the board’s funny and whimsical poster. You call me a halo dinosaur investor but from your reference of when you bought Halozyme (the days of Randall Kirk as the big investor), I can tell you have been a holder even longer than I have. If this is true, congratulations, you have at least quadrupled your money. When Kirk got involved with halozyme, it was trading in mid-single digits. So your chronic complaining about halozyme as an investment which goes back to the recent slump is absolute nonsense except for the short term (i.e. 2023).
Even Amazon that you love so much in your message had many bad year. When it crashed in 2000, it took years for it to get back to pervious highs. You clearly don’t understand the difference between investing and trading. BTW no one here has advocated for putting all your eggs in one baket.
Your comments although whimsical and at times funny are rarely more valuable than a court jester’s.
I have been an investor in Halozyme since 2011. To be fair, I have done well. However, I have come to recognize Halozyme can do far better for investors and patients under new management. I have posted about the Halo’s PE and PEG ratios as well as profit margin and present + future EPS growth multiple times on this board. The fact is that they did not deliver on their own goal of 3 deals in 2023, there have been no insiders buys and no bloomberg/CNBC appearance by Helen. As a result, the stock went down 30% last year while XBI was up 11%. The IR, Tram Bui does not even respond to emails from long time investors like me. It’s time for a clean up in managemenet. A new CEO/team would be able to unlock the significant unrealizes value in Halozyme.
That’s unusual. They may announce it later this week. Or they are busy finalizing a HVAI deal. Or perhaps we are getting a new CEO
Good riddance to 2023. It was a terrible year for Halo investors (down roughly 30%). Need to see the following early in 2024:
1) HVAI partnership
2) Insider buying
3) Bloomberg and CNBC appearances by Helen
And if the above 3 don't take place in January, a new CEO appointed by the board.
Does anyone here have the email addresses for halo’s board members?
S&P is trading at 2024 PE of 20. Halo has better a profit margin, better EPS growth (current and future) , and less competition than the average S&P 500 company, yet halo is trading at 2024 PE of 10.2
Halo should be at least at 20 PE, or $73
We’re not there because of managements failure to deliver the three deals, no insider buying, and no storytelling.
Following valuations are reaching “ridiculously cheap” status and reflect poorly on management’s ability to unlock value:
2023 PE Estimates
14.83
2024 PE Estimates
10.21
2025 PE Estimates
8.96
ROE
146.69%
ROI
14.54%
Gross Margin
68.91%
Oper. Margin
40.02%
Profit Margin
32.52%
Forecast 12 Month Forward PEG
Ratio
0.51
there is a biotech M&A boom and the sector is rebounding quite strongly. Yet, Halozyme despite great science and EPS growth is significantly lagging XBI. Halozyme needs new leadership.
It’s time to have new leadership at Halozyme
You can email IR or post on the official handle: @halozymeinc as I have
No doubt storytelling by itself is not enough. However, the point of the chapter I referred you to and its compelling data/logic is that fundamentals/technology is not enough. Success requires storytelling as well.
This is the job of the C-suite and they failed at it in 2023 based on the very benchmarks they set for themselves. The market seems to think this way as well.
Relevant to our discussion, please read/listen to the chapter in the best selling book “Same As Ever” by Morgan Housel (also author of psychology of money) titled: “Best Story Wins: Stories are always more powerful than statistics.”
Halo has the technology, science, profits, EPS growth at a great value. It just lacks good story tellers who can deliver new partnerships and non-institutional investors. They need to deliver or allow better storytellers take the helm.
I agree with your assessment on the lack of non-institutional investor awareness and I too think that it is part of the management’s and IR responsibility to get the story out. Why else do you think companies CEO’s make frequent appearances on investment shows/programs/social media, etc.?
This is another reason why I think we need new leadership.
They simply need to deliver on projections/promises on new deals. They promised 3 and only delivered a weak one. There is nothing magical about this. It’s simply achieving the goals that THEY set for themselves.
Yes, Argx’s trial failures (both very small TAMS and won’t affect halos future EPS all that much) and Tecentriq sc FDA delay have nothing to do with halo’s management or execution as you said. But this only counts for a small fraction of why halozyme performed so poorly this year.
If halo had delivered on 3 strong new deals this year, I would submit to you that we would be on par with XBI if not better.
They are failed this year in what should be in their sphere of control and influence. I’m not blaming them for what’s outside of their control.
Also, insiders need to show faith and buy shares at these ridiculously valuations. I like the buy backs but insiders need to use they own money and buy some too. This will show they have confidence and they are with the rest of us.
With new management, the board members can do far better with their options than they have over the past year.
BTW, with the exception of one officer (not board member), insider selling has been very quite most recently.
Board members will be able to sell their shares at far more appropriate values with a new management team. Halo should be at least at a PE of 20 and PEG of 1.
I have been a shareholder since 2011. My posts over a decade on this and other boards reflect this and have been pretty consistent.
I’ve done well with this investment over this time period. However, I am of the opinion that management did not execute as promised in 2023 (eg, only delivered one of the 3 deals promised).
Halo is severely undervalued. With a phat profit margin and top 32 growth stocks at great value (per Morgan Stanely last week), halo is still trading at a 2023 PE ratio of 14 and 2024 PE ratio PE ratio of 10 (see link below). This way below peers in biotech and healthcare sector.
https://www.nasdaq.com/market-activity/stocks/halo/price-earnings-peg-ratios
New management will be able to unlock the enormous value in Halo.
halo under performed benchmark XBI by around 30% this year. It did not deliver on the promised three deals. No insider buys on absolute bargain prices. It’s time for the board to consider new management. Long term investor about the leave for good.
You are correct
Great find, nonetheless. This should qualify as one of the 3 deals promised for 2023. Although this combination was already in pipeline for enhanze, I don’t think it was known to be an Auto-injector until your post. They need to issue PR on this progress.
Remember they promised:
1) auto injector + Enhanze
2) HVAI
3) new Enhanze alone
What you identified would satisfy #1
Argx pemphigus failed
With credit to YF poster:
Morgan Stanley has selected 32 stocks with high free cash flow, high earnings per share growth, and an overweight rating in its U.S. Equity Strategy report, published on Monday.
This selection comes from the top 1,000 U.S. stocks (NYSEARCA:IWF) by market cap, second quintile of high free cash flow yield and high EPS growth.
The stocks are: (Halo is on this short list):
Comcast Corp. (CMCSA)
Match Group Inc. (MTCH)
Live Nation Entertainment (LYV)
Verizon Communications Inc. (VZ)
BorgWarner Inc. (BWA)
US Foods Holding Corp. (USFD)
EQT Corporation (EQT)
Valero Energy Corporation (VLO)
EnLink Midstream (ENLC)
Cheniere Energy Inc. (LNG)
Marathon Petroleum Corp. (MPC)
Cardinal Health Inc. (CAH)
McKesson Corp. (MCK)
CVS Health Corp. (CVS)
United Therapeutics Corp. (UTHR)
Halozyme Therapeutics Inc. (HALO)
Curtiss-Wright Corp. (CW)
Delta Air Lines Inc. (DAL)
United Airlines Holdings (UAL)
Analog Devices Inc. (ADI)
Microchip Technology Inc. (MCHP)
Gen Digital Inc. (GEN)
Fortinet Inc. (FTNT)
Pure Storage Inc. (PSTG)
UDR Inc. (UDR)
Gaming & Leisure Properties (GLPI)
Simon Property Group Inc. (SPG)
Atmos Energy Corp. (ATO)
NextEra Energy Inc. (NEE)
PPL Corp. (PPL)
Public Service Enterprise Group (PEG)
Vistra Corp. (VST)
Cabanuva is a 2ml injection. So although it might be a new auto injector deal using Enhanze and anteras technology, it might not be the HVAI (10ml) we are waiting for
https://www.accessdata.fda.gov/drugsatfda_docs/label/2021/212888s000lbl.pdf
Strong work
I agree that she did not deliver and this is disappointing. However, if the deals are substantial even if they are later than promised, the timing won’t matter as much and the market will reward us handsomely. Just look at the projected timelines for many tech companies, (eg. TESLA’s promised products) and even multiyear delays did not matter as much when there is innovation and growth.
HVAI is a true innovation and will continue Halo’s EPS growth into late 2030’s
Any day now:
1) EU commission approval and launch of Tecentriq SC. This is Roche’s second largest cancer franchise. In November, the European Union’s Committee for Medicinal Products for Human Use (CHMP) expressed a positive opinion in support of approving subcutaneously administered atezolizumab (Tecentriq) across several disease types.
2) Vyvgart Hytrulo phase 3 data for Pemphigus indication
3) New HVAI partnership.
Look at the intrinsic value for halozyme (Warren Buffett and Ben Graham’s favorite metric for investing). Halo’s intrinsic value is 27% higher than its share price even without any of the catalysts mentioned above. https://valueinvesting.io/HALO/valuation/intrinsic-value
Wave 3, 4 and 5 products not only have a much larger TAM than wave 1 and 2, they will also be protecting all partners including halo with their co-formulation patents.
Halo is a cash flow generating machine with EPS well through 2030.
Yes, also likely
Yep, market doesn’t like halo’s insider selling even when it’s routine preplanned automatic sells. The reaction is usually short lived. I’m buying the dip as always.
To Jim Cramer madmoney@cnbc.com
“Hi Jim,
You featured Halozyme Therapeutics (Halo, a profitable biopharma) on Mad Money a couple of times. I think it was 2015 and 2017. It has done quite well over the years (became profitable in 2019 and stock has done well since your mentions). It has an excellent PEG (0.58) and PE ratios (16.71 for 2023) https://www.nasdaq.com/market-activity/stocks/halo/price-earnings-peg-ratios .
It also has a phat gross profit margin of 68%. https://finviz.com/quote.ashx?t=HALO&p=d
It is a secular story with multiple big name pharma partners paying it royalty revenues which are projected to continue to grow both the revenue and earnings well past 2030. It is 93% institutionally owned. Retail has not heard about them much at all lately. It will be worth a revisit by you.
With the Fed’s latest announcement, XBI and IBB are hot and will likely remain hot for sometime putting the wind to the back of Halozyme Theraputics.”
Feel free to write to him if you feel the same.
Halo was a great house in a bad neighborhood (XBI, IBB and all of biotech land) for most of 2023. Now that fed has confirmed cutting rates, XBI will explode to over $100. Halo is no longer swimming against the current.
It is possible but doubtful at this point. According to Helen, one of the 2 HVAI deals is progressing well and might happen before year end.
Exclusivities in this case are per indication, not per class of medication.
Alteogen and Merk results are expected in Sep 2026.
See the table in this article:
https://www.evaluate.com/vantage/articles/news/snippets/one-subcutaneous-form-goes-opdivo-dream-continues
Might be a good idea to write to their IR
… Nonetheless, it’s a bit absurd that a drug delivery company like West pharmaceutical with very little future earnings growth (PEG ratio of 11) and a lower profit margin than Halozyme is trading a PE ratio of 47.
They should take advantage of their high valuations, issue shares, raise cash and buy Halozyme.
… oops, my error. That $888 million and not 8.8 Billion. Nevermind
Wow… that is an incredible find. Thank you. West Pharmaceuticals is all about drug delivery. They have about $8.8 billion in cash (i.e. they can afford to buy Halozyme) and a very high PEG ratio of 11 (i.e. they are lacking future earnings growth) and can benefit from Halozyme PEG of 0.5
This is a match made in heaven :)
https://finviz.com/quote.ashx?t=WST&p=d