Halozyme Therapeutics Inc (HALO)

[biotechinvestor1]

7 Best Drug Stocks to Buy for 2022 Without Covid Catalysts

Not all drug stocks are Covid-19 stocks

1h ago · By Thomas Niel

Drug Stocks for 2022: Halozyme Therapeutics (HALO)

A close-up concept image of a tiny glass vial with a strand of DNA in it.
Source: Shutterstock

Already in the revenue stage, Halozyme Therapeutics is a drug delivery platform company. Its main platform, Enhanze, can be used to enable subcutaneous delivery of typically IV-delivered drugs.

With the advantages offered by Enhanze, it has found big success licensing this technology to other biopharma companies. So far, it’s formed 11 partnerships, covering 61 different treatments. Per company projections, annual royalty revenue could soar to as much as $1 billion by 2027. Pretty impressive, given Halozyme’s total revenue over the past twelve months is around $463 million.

However, given its main source of revenue coming from a patent that expires in 2027, investors have given the company a low valuation. At today’s prices, HALO stock sports a forward price-to-earnings (P/E) ratio of 18.5x. Then again, CEO Helen Torley and the management team is fully aware of this revenue durability issue, as seen in the company’s most recent conference call. Between co-formulation patents, and corporation relation patent opportunities, the company may be able to extend the life of its flagship technology.

In short, this perception that it’s a “melting ice cube” may work to your advantage. Buying now, ahead of developments in 2022 that secure Halozyme’s prospects could enable the stock, at around $33.40 per share today, to make its way back above $50 per share.

https://investorplace.com/2021/12/7-best-drug-stocks-buy-2022-without-covid-catalysts/