Introduction
Halozyme Therapeutics, a biotechnology company specializing in the development and commercialization of oncology and drug-delivery therapies, has been upgraded by Piper Sandler from Neutral to Overweight. This upgrade comes after the company reported strong Q1 EPS results, which saw its shares surge by more than 5%.
Halozyme Therapeutics upgraded to Overweight by Piper Sandler
Piper Sandler, a leading investment bank and financial services company, has upgraded Halozyme Therapeutics to Overweight from Neutral. The firm has also set a new price target of $46.00 for the biotech company’s shares. This upgrade comes after Halozyme reported better-than-expected Q1 EPS results, which saw its shares surge by more than 5%.
Halozyme’s strong Q1 EPS results
Halozyme Therapeutics’ Q1 EPS results were better than expected, with the company reporting a net income of $0.03 per share, compared to the expected net loss of $0.17 per share. This result was driven by the strong sales of its ENHANZE drug-delivery technology, which saw a 22% increase in revenue year-over-year.
Revenues miss expectations
Despite the strong Q1 EPS results, Halozyme’s revenues missed expectations. The company reported a total revenue of $70.6 million, falling short of the expected revenue of $76.6 million. This miss was attributed to the delay in recognizing some of the ENHANZE license fees due to timing of payment.
Halozyme’s ENHANZE technology
Halozyme’s ENHANZE technology is a proprietary drug-delivery platform that allows for the subcutaneous delivery of biologics, making them more convenient for patients and reducing healthcare costs. This technology has been licensed to various pharmaceutical companies for the development of drugs across multiple therapeutic areas, including oncology and immunology.
Halozyme’s outlook
Halozyme’s strong Q1 EPS results and the upgrade from Piper Sandler suggest that the company is well-positioned for growth in the coming years. The company has a robust pipeline of products in development that utilize its ENHANZE technology, including potential treatments for pancreatic cancer and severe COVID-19.
Conclusion
Halozyme Therapeutics has been upgraded by Piper Sandler to Overweight from Neutral following strong Q1 EPS results. The company’s ENHANZE technology has shown significant promise, and with a pipeline of products in development, Halozyme is poised for growth in the coming years. While its Q1 revenues fell short of expectations, the delay in recognizing some of the ENHANZE license fees is not a significant concern, given the overall positive outlook for the company.
