MLV Boosts Price Target For Halozyme; Increased Confidence In PEGPH20’s Mechanism


In a research report issued today after market close, MLV & Co. analyst Arlinda Lee reiterated a Buy rating on shares of Halozyme Therapeutics, Inc. (NASDAQ:HALO) and raised the price target to $20 (from $15), following the company’s preclinical study results of PEGPH20 in combination with cancer immunotherapy in solid cancers.

Lee noted, “In breast and ovarian cancer mouse models, PEGPH20-mediated depletion of HA was shown to effectively increase intratumoral exposure to immunotherapeutic agents and immune cells to stall tumor growth. Together with previous results in pancreatic and lung cancer, these results indicate PEGPH20’s mechanism of action is highly versatile and suggest potential benefit in combination with immunotherapy and beyond chemotherapeutic agents.”

Furthermore, “The preclinical results further emphasize HA as a promising target for cancer therapeutics and expand its role in multidrug resistance to escape from immune system surveillance. We view PEGPH20- mediated depletion of HA from the TME as a therapeutic strategy that is highly versatile in solid tumors expressing high levels of HA. As our confidence for HALO’s ongoing clinical studies in pancreatic and lung cancer is incrementally increased, we increase the probability of reaching the market from our prior 50% to 55% and from 25% to 30%, respectively. This adds an additional $2 to our PT”

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 5.0% and a 55.6% success rate. Lee has a 34.3% average return when recommending HALO, and is ranked #1447 out of 3476 analysts.