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Brean Murray Downgrades Halozyme Therapeutics (HALO) to Hold

August 11, 2008 11:15 AM EDT
HALO Hot Sheet
Rating Summary:
    4 Buy, 2 Hold, 0 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 16 | Down: 7 | New: 22
Brean Murray downgrades Halozyme Therapeutics, Inc. (Nasdaq: HALO) from Buy to Hold, saying while fundamentals are strong, the valuation is rich.

The firm said, "Although we view the fundamentals of the company as strong, we believe the stock is fairly valued at current levels with its recent run-up. Further, in the what we view as an increasingly more competitive diabetic market, we believe a potential insulin product will need to demonstrate substantial additional benefit, including better control of glucose level, benefit in weight loss, better control of hypoglycemia, and long-term safety data in order to justify the increased drug cost and to compete effectively with the currently marketed products and numerous soon-to-be marketed products with novel mechanism of actions or better delivery methods. Since the efficacy data of Halozyme's diabetic product is still early (with only Phase 1 data in healthy volunteers), we will wait for the efficacy data in diabetic patients in order to better assess its market potential."

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