Piper Jaffray Cuts Price Target on Halozyme Therapeutics (HALO) Following Presentations at ASCO GI
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Piper Jaffray maintained an Overweight rating on Halozyme Therapeutics (NASDAQ: HALO), and cut the price target to $20.00 (from $24.00), after recently presenting abstracts at ASCO GI and 2016 guidance. Halozyme has fully enrolled Stage 2 of the ‘202 study, setting the study up for a mature PFS readout in 4Q16. Halozyme has also provided additional details on Phase III powering, identifying a PFS hazard ratio of 0.59. Piper Jaffray believes that this provides a conservative buffer over the PFS HR seen in ‘202 so far.
Analyst Charles Duncan commented, "Halozyme recently presented abstracts at ASCO GI and provided 2016 guidance. We believe the stock is oversold YTD for several reasons, including higher burn guidance than we anticipated, investor uncertainty with PFS (versus survival) in the difficult indication of pancreatic cancer, as well as a “moving” HR when looking at PFS data from the Phase II with the new diagnostic. We’re not overly concerned about cash flow given the growing ENHANZE business and also believe the oncology indications are being pursued with a differentiated and risk-reduced approach. We are also encouraged by the cleaner safety readout from ‘202 and expect value creation this year as ‘202 matures yielding PFS data in 4Q, ‘301 starts in 1H, and updates from earlier-stage studies (breast, lung, gastric) increase visibility. However given '16 guidance, debt financing, and updated pancreatic revenue model based on '301 design, we're reducing our PT to $20 while remaining Overweight."
For an analyst ratings summary and ratings history on Halozyme Therapeutics click here. For more ratings news on Halozyme Therapeutics click here.
Shares of Halozyme Therapeutics closed at $9.83 yesterday.
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