Morgan Stanley Analyst Initiates Coverage of Halozyme Therapeutics with Overweight Rating and $65 Price Target Supported by Enhanze Technology Licensing
December 23, 2022
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Halozyme Therapeutics Stock Fair Value – Halozyme Therapeutics ($NASDAQ:HALO) is a biopharmaceutical company focusing on the research and development of novel oncology therapies. The company is known for its innovative Enhanze Technology, which enables the subcutaneous administration of many drugs that are traditionally administered intravenously or intramuscularly. This technology has been licensed to many leading pharmaceutical and biotechnology companies, such as Roche, Eli Lilly, and Takeda.
Recently, Morgan Stanley’s analyst Vikram Purohit has initiated coverage of Halozyme Therapeutics with an Overweight rating and a price target of $65. Purohit believes that the Enhanze Technology is the key driver behind the stock’s potential and has set a price target based on the expectation of strong license fees from the companies using the technology. Purohit also noted that the Enhanze Technology “could be a game changer for many drugs” as it has the potential to reduce costs, improve convenience, and enhance efficacy of many drugs by allowing them to be administered subcutaneously.
Stock Price
This is based on the company’s Enhanze Technology, which the company has licensed from Roche. Although news sentiment around Halozyme Therapeutics has been mostly negative at the time of writing, their stock opened at $57.4 and closed at $58.4, up by 2.9% from the last closing price of 56.7. This is significant news for Halozyme Therapeutics, as it signals that its Enhanze Technology is being recognized as a valuable asset. This technology is used to modify biologics and other drugs, allowing them to be administered subcutaneously instead of intravenously. This could be a major breakthrough for drug developers, as it could potentially reduce costs and improve patient outcomes. The positive sentiment from Morgan Stanley is likely to help Halozyme Therapeutics gain more recognition in the industry and attract potential investors.
It could also help the company to make future deals with other drug developers and expand its product portfolio. This could be beneficial for shareholders, as it could translate into higher returns in the future. Overall, Morgan Stanley’s bullish outlook for Halozyme Therapeutics is encouraging news for the company and its shareholders. The positive sentiment from the analysts is likely to help the company gain more attention in the coming months, which could result in higher stock prices and greater returns for investors. Live Quote…
About the Company
Income Snapshot
Below shows the total revenue, net income and net margin for Halozyme Therapeutics. More…
| Total Revenues | Net Income | Net Margin |
| 580.62 | 211.2 | 36.7% |
Cash Flow Snapshot
Below shows the cash from operations, investing and financing for Halozyme Therapeutics. More…
| Operations | Investing | Financing |
| 240.17 | -784.73 | 200.03 |
Balance Sheet Snapshot
Below shows the total assets, liabilities and book value per share for Halozyme Therapeutics. More…
| Total Assets | Total Liabilities | Book Value Per Share |
| 1.86k | 1.77k | 2.13 |
Key Ratios Snapshot
Some of the financial key ratios for Halozyme Therapeutics are shown below. More…
| 3Y Rev Growth | 3Y Operating Profit Growth | Operating Margin |
| 42.1% | 21.2% | 42.6% |
| FCF Margin | ROE | ROA |
| 40.9% | 79.3% | 8.3% |
VI Analysis – Halozyme Therapeutics Stock Fair Value Calculator
Halozyme Therapeutics is a biopharmaceutical company with a focus on developing and commercializing innovative products that are designed to improve the lives of patients. The company’s fundamental analysis is made simple with the VI app, which estimates the fair value of Halozyme Therapeutics’ share at around $61.9. Currently, the stock is traded at $58.4, which is a fair price that is undervalued by 6%. Halozyme Therapeutics has a strong pipeline of products, which consists of therapeutic enzymes and related technologies. These products target major diseases and medical conditions, such as cancer, autoimmune conditions, neurological disorders and metabolic disorders. The company has recently received FDA approval for its drug Enhanze, a recombinant human hyaluronidase for subcutaneous administration. This drug has potential to improve the delivery of biologic drugs into the body and has been approved for use in the US. The company also has an established network of research collaborations with leading pharmaceutical companies, such as Pfizer, Amgen, Bristol-Myers Squibb and Novo Nordisk. These collaborations have enabled Halozyme to further develop its pipeline of products and bring them to market. The company has also generated a positive free cash flow for the past few years, allowing it to invest in growth opportunities and maintain a healthy financial position. Overall, Halozyme Therapeutics is well-positioned to capitalize on its strong fundamentals and continue to deliver value to shareholders in the long-term. More…
VI Peers
The Company’s enzyme-based product candidates target the tumor microenvironment, enabling the delivery of cancer drugs directly to the site of the tumor. Halozyme has four product candidates in clinical development, PEGPH20, Hylenex, HALO-102 and HALO-201. Keymed Biosciences Inc, Verona Pharma PLC, Xencor Inc are Halozyme’s competitors in the biopharmaceutical market.
– Keymed Biosciences Inc ($SEHK:02162)
Keymed Biosciences Inc is a biopharmaceutical company that focuses on the development and commercialization of novel therapeutics for the treatment of cancer and other serious diseases. The company’s market cap is 12.95B as of 2022 and has a ROE of -4.34%. Keymed Biosciences Inc’s products are designed to target key drivers of disease progression and to provide patients with new treatment options. The company’s lead product, KEY-184, is a first-in-class, orally-available small molecule inhibitor of the MDM2 oncoprotein.
– Verona Pharma PLC ($NASDAQ:VRNA)
Verona Pharma PLC is a pharmaceutical company that focuses on the development of drugs for the treatment of respiratory diseases. The company has a market cap of 790.27M as of 2022 and a Return on Equity of -28.69%. Verona Pharma PLC is headquartered in London, United Kingdom.
– Xencor Inc ($NASDAQ:XNCR)
Xencor Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of engineered monoclonal antibodies for the treatment of cancer and autoimmune diseases. The company’s market cap as of 2022 is 1.64B with a ROE of 4.05%. Xencor is currently working on several clinical-stage programs including XmAb5871 for the treatment of B-cell malignancies, autoimmune diseases, and asthma.
Summary
Investing in Halozyme Therapeutics can be a very attractive and lucrative opportunity for investors due to the company’s unique Enhanze technology that has been licensed by Morgan Stanley. The technology has created a platform which has opened up new avenues for drug development and delivery, allowing for greater efficacy and patient convenience. This technology has been further supported by Morgan Stanley’s recent analyst initiation of coverage of Halozyme with an overweight rating and $65 price target, making it an appealing investment opportunity in the biopharmaceutical space. The company is a leader in developing novel cancer treatments, having developed and commercialized two oncology-related products.
In addition, they are actively pursuing several other products that are currently in clinical development. Halozyme also has a strong pipeline of potential products, which could serve as a significant source of revenue growth over the coming years. The company has also been involved in numerous strategic collaborations and partnerships with other biopharma companies, such as Roche and Pfizer, which further strengthens its position in the industry and allows it to access additional resources and expertise. This further supports the potential of the company as an attractive investment opportunity. Overall, Halozyme Therapeutics is well positioned to benefit from the expanding biopharmaceutical sector. With its unique Enhanze technology and strong partnerships, the company is well positioned to take advantage of the growing opportunities in the industry. Furthermore, with Morgan Stanley’s recent analyst initiation of coverage, investors have a heightened level of confidence in the company’s future prospects. As such, investors should consider Halozyme Therapeutics as a potential long-term investment opportunity.
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