Halozyme Therapeutics Inc (HALO)

[Fred Kadiddlehopper]

Thanks for the clinical update on "cheetah", Rod. Halozyme continues to follow through.

Today's news from Roche is very positive on a number of fronts.

It builds stronger confidence that the Roche partnership is on solid ground and that the full potential of the deal may yet be fulfilled. The original deal licensed rHUph20 to Roche for a total of 11 (or was it 13?) targets. Roche has moved to begin use on the 4th such target and doubtless this means they are not going to stop there.

Secondly, today's news shows that the Roche partnership continues to provide a nice income stream to finance other HALO endeavors. We are now fully funded for the next 28 months at today's burn rate of $10 million/Q. If you've ever experienced the pleasures of investing in a biotech that was chronically short of cash then you know just how important this income stream is to the health of your investment in HALO. The fact is that our outstanding share count has not increased for years and dilution problems are not on the table as we go forward. This is the type of sound foundation that turns a three dollar stock into a sixty dollar stock.

Thirdly, moving one target into the clinic and selecting a fourth target shows the pharma world at large that Roche, slow behemoth that it is, is happy with it's pre-clinical results using rHUph20. This is a very important proof of concept signal to other potential partners that should prod them to see the value of a collaboration with Halozyme. Don't forget the original announcement of the Roche deal two years back. When asked by an analyst how many more compounds may beneficially be
co-formulated with rHUph20, Dr. Lim said approximately 1000. This is the idea that moved this stock to $10.00 and moved R. Kirk to start investing in Halozyme. This potential has been further affirmed by today's news.

All in my humble opinion.

Good luck!
-Fritz