Replies to post #7387 on Halozyme Therapeutics Inc (HALO)

[maumar]

The note is dated March 1.

But imo the biggest catalyst is the oral hearing on Darzalex Faspro coming up on 3/14 to 3/15. If JNJ and Halo lose and Halo's royalty rate is cut in half, Halo will lose about 2% of JNJ's revenues from Europe. Since revenue in Europe is likely to be about $3B in 2024, Halo would lose about $60M in royalties and more in the following years. The stock may be weak now because of the imminent risk. Below is another MS note from today:

European Opposition Upcoming Catalysts (Exhibit 5):
Oral hearing on Darzalex Faspro co-formulation patent: European
oppositions allow challengers to invalidate patents centrally at the
European Patent Office, rather than individually at the national courts.
This '770 Patent is important because it: (1) covers the subQ formulation
using Halozyme’s Enhanze technology and (2) has the potential to extend
the exclusivity period from the composition of matter patent from 2031 to
2036. A brief decision is expected at the end of the oral hearing, with a
detailed written decision expected in 2Q-3Q 2023.

Exhibit 5: Tracked European oppositions
Drug Patent
owner Challenger Next
catalyst
Catalyst date
(M/D/YY)
Challenged
patent
Darzalex
faspro JNJ straw man
opponent
oral
hearing
3/14 to
3/15/23 EP3,370,770