Halozyme Therapeutics Inc (HALO)

[biotechinvestor1]

Market participants are expecting good news on the deal front. Helen mentioned in May that halo has completed the ‘technical’ phase of a new partnership. The next phase is legal which should not take more than a few months.

If the new deal is a HVAI, there will be a sustained upward trend of at least 15-30% in my view. A HVAI is not just another deal, it’s validation of a brand new innovation and a new platform for future deals.

I agree that if months roll by and we don’t see a new deal, the enthusiasm will dampen. However, any dips will be shortsighted and an awesome opportunity to buy more as it has been all these years. The reason for this is clear; even without a single new deal, halozyme has massive EPS growth CAGR every year between now and 2029. This growth is not priced into the current valuation with PE and PEG being so attractive.