Halozyme Therapeutics Inc (HALO)

[maumar]

In any case, I don't think the drop was caused by this announcement. The market reacted immediately to the financial guidance and outlook. Also, my guess is that the meeting at the JPM conference did not help. There was no exciting news and Helen did not provide any clarity on the issue of the potential stepped down royalty rates in 2024 and 2027. In fact, one could argue that she clouded the issue even more. Towards the very end of the call, the JPM analyst asked if at some point we will be able to tell what products have a stepped down royalty rate ("Will we be able to parse it out?") and Helen seemed to hesitate, then said, "No, I don't think so."

So, we are left to guess how many products and which ones will have a stepped down royalty rate starting from 2024. Helen basically said some products will and some will not and you have to trust there will be continued growth because they have enough products in the pipeline.