Wainwright Reaffirms Buy on HALO as Deal Momentum Drives Growth

H.C. Wainwright has reaffirmed its Buy rating for Halozyme Therapeutics (NASDAQ:HALO), citing deal momentum as a key driver of growth.

The firm highlighted Novartis's option and license agreement with Alteogen, which covers subcutaneous versions of multiple Novartis drugs using ALT-B4. The partnership has the potential to generate up to $3.223 billion if all options are exercised and milestones are achieved.

H.C. Wainwright believes that Merck & Co. and Novartis provide ALT-B4 with two major-pharma reference points, posing a competitive challenge for ENHANZE. However, the firm is less concerned about ALT-B4 displacing ENHANZE at this stage.

The next catalyst for Halozyme's stock is expected to be the Patent Trial and Appeal Board institution decisions on Merck’s three IPR petitions, scheduled for late September.