MLV Reiterates Buy on Halozyme Therapeutics, Inc. Following License Agreement With AbbVie Inc
In a research note issued today, MLV analyst Arlinda Lee reiterated a Buy rating on Halozyme Therapeutics, Inc. (NASDAQ:HALO) with a price target of $20, following the company’s announcement of its global collaboration and license agreement with AbbVie Inc (NYSE:ABBV). The agreement will be for up to 9 collaboration targets, up to $130 million in milestones for each target, and a $23 million payment upfront.
Lee observed, “Like its partnerships with Roche, Pfizer, Baxter, and Janssen, this partnership will develop drugs combining AbbVie’s (yet to be disclosed) products with HALO’s ENHANZE platform. Under the terms of the agreement, HALO will receive a $23 M upfront payment and is eligible to receive an additional $130 M in regulatory and milestone payments on each collaboration target as well as tiered royalties upon successful commercialization. We view this as a positive development and a boost to HALO’s partnered PH20 programs, which provide a valuation floor for the stock.”
Furthermore, “At this time, we do not include ABBV’s SC contribution in our estimates and valuation pending announcement of disease target selection. However, we would view a SC version of ABBV/BMY’s Phase 3 myeloma drug candidate elotuzumab (anti-CS1 monoclonal antibody) as an important strategic move for market expansion.”
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 2.4% and a 51.9% success rate. Lee has a 30.8% average return when recommending HALO, and is ranked #1696 out of 3610 analysts.