In a research report sent to investors this morning, MLV analyst Arlinda Lee maintained a Buy rating on Halozyme Therapeutics (NASDAQ:HALO), and raised her price target to $15 (from $12), as the company announced interim Ph2 PEGPH20 pancreatic cancer results (Study 202) and provided updates on the PEGPH20 clinical development plan in non-small cell lung cancer (NSCLC) and gastric cancer.
Lee noted, “In our view, these early results in small numbers of patients are directionally consistent wtih PEGPH20’s purported mecahnism of action and clinical effect. Other PEGPH20 clinical studies are ongoing or imminent, including Phase 1b/2 PRIMAL trial in NSCLC and Phase 1b immunotherapy study in NSCLC and gastric cancer. Overall, we view the PEGPH20 data as promising, and we adjust our model to reflect our increased confidence. For pancreatic cancer, we increase our probability of success to 50% from 40% and market penetration to 25% from 20%, resulting in an estimated ~$940M revenue (prior $800M) and representing $7e/share of our SOTP valuation (prior $4).”
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Arlinda Lee has a total average return of 14.9% and a 76.5% success rate. Lee has a 38.6% average return when recommending HALO, and is ranked #699 out of 3434 analysts.