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Merck has about 8.7 billion in cash on its balance sheet. That would be about a 70% premium to halo’s market cap. I think the halo’s board might consider it. LOL
Wasn’t there another korean company with different recombinant human hyaluronidase (not caffeine) that had an agreement with Merk for Keytruda? If I remember correctly, Merk dumped them and decided to do its own SC alone which up until recently I thought was without any hyaluronidase. However, the study I posted shows that it is with hyaluronidase. Whose? Will it not be a patent violation?
I thought Merk abandoned their collaboration with the south korean company and were doing their own sc
Yes, I think you are correct. Porcine, not bovine
I wonder if it’s bovine hyaluronidase. If it human recombinant, halo could go after them for patent infringement. Below is the link for the study. It does not specify “human” whereas almost all enhanze studies specify human recombinant hyaluronidase. Non-human hyaluronidase has been around going back several decades but it fell out of favor due high rate of immune reaction.
https://classic.clinicaltrials.gov/ct2/show/NCT06099782?term=hyaluronidase+keytruda&draw=2&rank=1
At the fireside chat and Q&A yesterday, Helen said that the two high volume auto injector deals are progressing well and that one of them may still happen this year. She said it's going through the approval process of the partner company. This sounds like a big Pharma company's bureaucracy since the deal approval has taken so long.
Today both CEO and CFO mentioned a potential new partner that has a 2 mL subcutaneous injectable that needs to be given twice each time for a total of 4 mL. They said this is an example of suitable target for the high volume auto injector. Let’s see if we can find subcutaneous drugs that are currently given 2 ml x 2 per dose.
Placebo group in the Efgartigimod SC ITP trial did 3 times better than the placebo group in the Efgartigimod IV trial (per Argenx). Argenx said they don’t think it has anything with route of administration. Don’t be surprised if we are back above $41 again soon
With so many other successful enhanze trials, and over 700k patients treated successfully with it, it’s hard to read too much into this. I don’t think it says much about any other trials. Enhanze has succeeded even with Efgartigimod in other indications. I think this will be a buying opportunity
Hope you all had a nice thanksgiving. Helen had projected 3 deals for 2023:
1) Enhanze alone
2) Enhanze with auto-injector
3) Auto-injector alone
#1 is accomplished. #2 according to Helen (last earnings CC) might not happen until 2024 but we are getting 2 deals with HVAI instead of one. What about #3?
In a report released today, Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on Halozyme, with a price target of $61.00. The company’s shares closed last Thursday at $39.52.
https://www.tipranks.com/news/blurbs/analysts-offer-insights-on-healthcare-companies-cybin-cybn-adma-biologics-adma-and-halozyme-halo
XBI is going in the right direction. Halo has so much going for it and now after a long time, it’s got the wind (XBI) on it’s back.
It’s much easier to swim the current.
Halozyme has been a beachball held under water over the past 10 months. With its phat profit margin and superb earnings growth, very little doubt that it would float nicely again.
With inflation seemingly cooling
(headline news today), XBI should do quite well. If your assessment is correct (which I think it is), we should see a nice steady run to mid-high 40’s.
I agree with your assessment.
Helen Torley
“All right. Thank you for that question, Michael. We actually do have another partner that is confidential who has the non-exclusive access to the amyloid beta. And in light of that, the opportunity with Acumen was non-exclusive given that we already had somebody who has the target non-exclusively. And I think that's a nice example as to how we're able to do non-exclusive deals, we can licensed to multiple different partners.”
… Also from Helen on the conference call: “I am delighted that one of our current partners has agreed to test our current high volume auto injector device in a clinical test in 2024. This is a step prior to the potential development of a customized high volume auto injector for the patient population this partner is considering.
At least one other current partner is also considering proceeding with the development of a customized high volume auto injector for their patient population. We have not yet completed this agreement and our main focus to seek to get this completed in 2023 recognizing that may now occur in 2024.”
From Helen on the call conference:
“I'll leave you with two key takeaways. Firstly, the multiple positive Phase III data readout from our Wave 3 product in the last 19-months, support a high success rate in the translation of Phase I, II ENHANZE subcutaneous pharmacokinetic data into positive Phase III results. This high success rate from early clinical data to positive Phase III data to approval is not always fully appreciated. The likelihood of success for our partners utilizing ENHANZE technology when bridging from an IV approval to subcu is very high, once the early clinical data is generated.
And secondly, as a result of the multiple positive Phase III data readout, we are confident to project nine royalty revenue generating products by 2025, a significant increase from five that we had as we entered 2023.”
Here we go again… yet another unlikely claim. You say you are (singularly) indifferent to me, yet you respond to nearly everyone of my posts! Your claims just don’t add up.
If you are truly indifferent to me, perhaps you can let it go and not respond to this post! Can you do it?
I tell you what, you do what you want, I will not be responding to your posts.
Dear savant market timer,
I’m not surprised you declined to show off your amazing market timing skills by forecasting where Halozyme would be in 1-6 months with the generous margin for error that I gave you.
You say you don’t care to prove yourself to others, yet you claim that you have outperformed Nasdaq over the past 10 years and go on a lengthy description of your moves in various sectors. You clearly do feel a need to prove yourself.
The more you describe your moves and investment philosophy, the stronger my conviction becomes that you did not outperform Nasdaq in 10 years. It’s unlikely that you even beat S&P 500 in that time frame.
So you “did better” than Nasdaq over past 10 years?! In another post you also claimed that you are in and out of Halozyme and you have done better than those who buy and hold. You must be a savant in market and halozyme timing.
I highly doubt both of these claims. It’s hard to imagine that someone who though a raise in earnings guidance is bad for a stock (as well as so many other nonsensical assertions) would be so successful in timing the market.
Care to prove me wrong? Why don’t you show us your timing skills by telling us where you see halozyme by the end of the year. Let me make even easier for you; why don’t you tell the board where halzoyme will be in any time frame of your choice between one and six months? Even easier? I’ll give you a 10% margin of error. If you get the direction right and you are within 10%, I for one will believe your spectacular claims.
Again, Nasdaq has outperformed S&P500 by a fantastic margin over the past 10 years. S&P 500 is the benchmark that majority of fund managers are graded against. Over 80% of fund mangers underperform S&P 500, let alone NASDAQ.
You admitted that Halozyme has outperformed Nasdaq over the past 10 years. I am more than happy with my investment in it over this period and would feel the same if the next 10 years produce the similar results.
If this is not enough for you, then the educated investors who know how tough it is to beat S&P 500 over a long period of time, would have little respect for your broken logic.
Sometimes there are better uses for cash than letting sit in the bank! Some pay dividends (fine but not tax efficient for the shareholders), some pay down debt (halozyme’s interest rate are ridiculously low, and its leverage ratio is super healthy) and others such as many of the most successful S&P 500 companies buy back shares. You can also use the cash for acquiring other assets, companies, etc. When share prices are so undervalued as halo’s (low PE and PEG ratios) and there is tremendous past and future earnings growth, the best choice is to buy back shares.
Again, share buy is simply the opposite of dilution. It means fewer shares are outstanding and that you as a shareholder, have a bigger percentage ownership of future earnings. This is fundamentally good for shareholders.
I must say, I appreciate the levity in your posts. It makes this board more interesting. As talented you are in sarcastic and witty remarks, your investment philosophy (eg. Halozyme is a bad investment because it has slightly outperformed Nasdaq over the past 10 year, raising earning guidance is bad for share price, ….) does hold water. Can’t mask broken logic behind clever words however entertaining those words might be.
No money in the bank?!! Are you not looking at the positive cash flow, the outstanding profit margin, the magnificent earnings growth of the past several years and what’s been guided for earnings through 2030?
No need to “puzzle”. Your posts now are not that different from when halozyme was trading in single digits and in low teens back in 2018 and 2019. If I were to listen to pessimism in face of such strong fundamentals, I would have lost on a 4x opportunity.
Thank you. I rest my case. You said Halozyme has slightly outperformed Nasdaq over the past 10 years.
You don’t seem to be impressed by this at all and this says a lot about your understanding of markets.
I can’t believe I have to explain this but for your information, NASDAQ has outperformed the S&P 500 by a huge margin over the past 10 years. Vast majority of fund managers underperform the S&P 500.
So if Halozyme has outperformed the Nasdaq and Nasdaq has significantly outperformed the S&P 500, it would silly to use this point against an investment in Halozyme.
Again, when shorts have nothing valid to say and have to constantly spin clearly positive news/performance (earnings beat, raise, share buybacks, 10 year returns, …) into negative opinions, you know have a gem in your hands.
Which chart? The 3, 5, 10 year charts? Or the daily chart? How about the all time chart? Because all of those look terrible for shorts (BTW, I wasn’t sure if you were one until this point).
The only chart that looks good for shorts is the one year chart, but I already congratulated you on it!
I’m not here to convince the shorts. You guys keep selling and we will keep buying. Long term investors are happy with this arrangement.
Dear shorts,
Despite superb fundamentals and a decade like value creation for long term investors, Halozyme had 3 quarters of share price decline this year. Congratulations! But your time is over. You don’t have to take my word for it anymore. Just take a look at how you try to negatively spin an earnings beat, a guidance raise, and an outstanding conference call and how the market tells you that you are 100% wrong.
You had a good run for 10 months but it’s over.
They are going buy back $250 million effective immediately. That’s about 7 million shares. With this earnings beat and raise, they are going to have a hard time finding sellers. This will put a significant support under the price for some time.
Halo has 132 million shares outstanding. If my math is correct 7 million shares is about 5% of the total. Our ownership of all future Halozyme earnings went up by 5% as a result of this move.
This should translate to at least a 5-10% increase in share price in my view. The beat and raise should be worth another 5-10%.
Just finished listening to the conference call. I thought it was outstanding. There was so much that I liked in addition to the earnings beat and raised guidance.
1) In the Q/A, Helen mentioned Halozyme already had a confidential deal with another Alzheimer’s Amyloid MAB maker (prior to the Acumen announcement today). I think this is either Lily or Biogen. This is significant and Halo has is not getting any credit for it. I think the cat is out of the bag now. We should see a nice bounce.
2) They are fully convinced that Halozyme is undervalued. The share buy back acceleration is the right move. I’d love to see some insider buys too.
3) Sounds like there is plenty of interest in High Volume AI. We were promised one this year and although she said it might happen in 23 or 24, she said there are now 2 companies in talk for HVAI. So although it might not happen in 23, the number of immediate prospects increased from one to 2.
Raising earnings guidance is positive in most people’s view. Prior to your post, I had not seen a negative impression of it.
Halo beats earning estimates about 75% of times. So when they guide up, there is a good chance they will deliver.
Most don’t have a good understanding of buy backs. It is simply the opposite of dilution. It means fewer shares are outstanding and that you as a shareholder, have a bigger percentage ownership of future earnings.
I see a sign of a bottom when I see such level of pessimism over otherwise positive principles.
Despite this weak partnership, halo will be back in mid 40’s if Helen guides up 2024 earnings, announces a new round of share buy backs and reiterates 2 more partnerships before tear end.
If Helen does not deliver on the 2 other deals that she forecasted for this year, it would be hard to make any other conclusions.
You are correct. The exclusivity benefits Halozyme. It means Enhanze can be combined with other MAB for the Alzheimer’s indication in the future. Much bigger pharma like Biogen and Lily have IV MAB’s for this indication.
Yes, this is not a super exciting partnership. I would like Helen to confirm that she expects 2 more before year end.
Also, I would like to see her raise guidance for 2024.
You are spot on. Subcutaneous injections existed before Ehnaze/halozyme. For certain molecules, volumes and viscosities, there is no need for Enhanze.
No one ever claimed that all subcutaneous molecules must be with enhanze.
There are a handful of perm-a-bear/shorts on this board who pretend that any subcutaneous injection without Enhanze is somehow a major blow or an existential threat. This has never been the case. There is a growing subcutaneous market for both with and without Enhanze.
I checked with IR 2 weeks ago. She emphatically reiterates the expectation of three new deals before the end of the year. We shall see.
New phase 2 study posted for the first time today. relatlimab+nivolumab+rHuPH20 for melanoma. Sponsor BMS
https://classic.clinicaltrials.gov/ct2/show/NCT06101134?term=Rhuph20&draw=3&rank=98
(Edited)….GARP (growth at reasonable price) is what many investors are after. One of the best metrics for assessing GARP is the PEG ratio. Less than 1 is considered a good PEG ratio. Halozyme’s PEG of 0.54 is absolutely terrific and puts it in the creme dela creme category for GARP.
GARP (growth at reasonable price) is what many investors are after. One of the best metrics for assessing GARP is the PEG ratio. less than 1, is considered a good PEG ration. Halozyme’s PEG of 0.54 is absolutely terrific and puts it in the creme dela creme category of GARP.
https://www.nasdaq.com/market-activity/stocks/halo/price-earnings-peg-ratios
https://www.investopedia.com/terms/p/pegratio.asp#:~:text=What%20Is%20Considered%20to%20Be,a%20stock%20is%20relatively%20undervalued.
For those who appreciate value investing, NASDAQ:HALO is a compelling option with its solid fundamentals.
By Mill Chart Last update: Oct 24, 2023
Mill Chart
HALOZYME THERAPEUTICS INC (NASDAQ:HALO) has caught the attention of our stock screener as a great value stock. NASDAQ:HALO excels in profitability, solvency, and liquidity, all while being very reasonably priced. Let's delve into the details.
Evaluating Valuation: NASDAQ:HALO
ChartMill assigns a proprietary Valuation Rating to each stock. The score is computed by evaluating various valuation aspects, like price to earnings and free cash flow, both absolutely as relative to the market and industry. NASDAQ:HALO was assigned a score of 9 for valuation:
Compared to the rest of the industry, the Price/Earnings ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.18% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 24.91, HALO is valued a bit cheaper.
The Price/Forward Earnings ratio is 9.21, which indicates a very decent valuation of HALO.
HALO's Price/Forward Earnings ratio is rather cheap when compared to the industry. HALO is cheaper than 98.67% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of HALO to the average of the S&P500 Index (18.49), we can say HALO is valued rather cheaply.
Based on the Enterprise Value to EBITDA ratio, HALO is valued cheaply inside the industry as 95.85% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of HALO indicates a rather cheap valuation: HALO is cheaper than 97.34% of the companies listed in the same industry.
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
HALO has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as HALO's earnings are expected to grow with 25.48% in the coming years.
Exploring NASDAQ:HALO's Profitability
ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:HALO was assigned a score of 8 for profitability:
HALO has a Return On Assets of 12.91%. This is amongst the best in the industry. HALO outperforms 97.51% of its industry peers.
HALO has a better Return On Equity (154.74%) than 99.67% of its industry peers.
The Return On Invested Capital of HALO (14.76%) is better than 98.17% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for HALO is significantly above the industry average of 12.00%.
The 3 year average ROIC (36.79%) for HALO is well above the current ROIC(14.76%). The reason for the recent decline needs to be investigated.
HALO has a better Profit Margin (30.21%) than 97.67% of its industry peers.
In the last couple of years the Profit Margin of HALO has grown nicely.
HALO has a Operating Margin of 39.79%. This is amongst the best in the industry. HALO outperforms 98.50% of its industry peers.
In the last couple of years the Operating Margin of HALO has grown nicely.
The Gross Margin of HALO (77.42%) is better than 85.55% of its industry peers.
Understanding NASDAQ:HALO's Health Score
Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:HALO has achieved a 7 out of 10:
HALO has an Altman-Z score of 3.19. This indicates that HALO is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.19, HALO is in the better half of the industry, outperforming 77.74% of the companies in the same industry.
HALO's Debt to FCF ratio of 5.11 is amongst the best of the industry. HALO outperforms 95.18% of its industry peers.
HALO has a Current Ratio of 6.58. This indicates that HALO is financially healthy and has no problem in meeting its short term obligations.
A Quick Ratio of 5.44 indicates that HALO has no problem at all paying its short term obligations.
Growth Assessment of NASDAQ:HALO
A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:HALO has received a 8 out of 10:
HALO shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 25.91%, which is quite impressive.
The Earnings Per Share has been growing by 42.34% on average over the past years. This is a very strong growth
HALO shows a strong growth in Revenue. In the last year, the Revenue has grown by 58.71%.
Measured over the past years, HALO shows a quite strong growth in Revenue. The Revenue has been growing by 15.83% on average per year.
Based on estimates for the next years, HALO will show a very strong growth in Earnings Per Share. The EPS will grow by 24.80% on average per year.
HALO is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 18.14% yearly.
Our Decent Value screener lists more Decent Value stocks and is updated daily.
For an up to date full fundamental analysis you can check the fundamental report of HALO
Disclaimer
This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.
https://www.chartmill.com/news/HALO/Chartmill-15023-NASDAQ-HALO-is-an-undervalued-gem-with-solid-fundamentals?utm_source=Chartmill-15023-NASDAQ-HALO-is-an-undervalued-gem-with-solid-fundamentals&utm_medium=stocktwits&utm_campaign=blog&utm_content=HALO
Thx. So it was a fluke