Halozyme Therapeutics, Inc. (NASDAQ: HALO) is up big in the market early on this morning, and for good reason. An announcement was made with regard to a key partnership, leading to excitement among investors and sending the stock toward the top. As is almost always the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:33), HALO is trading at $15.94 per share after a gain of $2.76 per share or 20.93% thus far today.
HALO Gains On Partnership News
As mentioned above, Halozyme Therapeutics is having an overwhelmingly strong start to the trading session this morning after the company announced a couple key partnerships. The company announced early this morning that it would be licensing its drug delivery technology to both Bristol-Myers Squibb (BMY) and Swiss pharmaceutical company, Roche in two separate collaborations.
As a result of the licensing agreements, HALO raised its 2017 revenue forecasts. The company now expects that revenue for the full year will come in between $245 million and $260 million. That's a big jump from previous guidance of $115 million to $130 million.
With regard to the licensing agreements, HALO will be bringing in $135 million in upfront payments. $105 of which will come from BMY while the other $30 million will come from Roche. The technology licensed is the Enhanze technology, which is designed to help speed up the administration of injectable drugs.
Moving forward, Halozyme could end up bringing in an additional $160 million from both deals combined. These funds will be associated with milestones including development, regulatory and sales-based goals.
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What We'll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on HALO. In particular, we're interested in watching the continued work surrounding Enhanze and excited to see the result of the collaborations mentioned above. Nonetheless, we'll continue to follow the story closely and bring the news to you as it breaks!
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