Halozyme Therapeutics Shares Popped: What You Need to Know
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of biotech Halozyme Therapeutics (NAS: HALO) soared close to 19% before closing up 6%. Licensing payments from ViroPharma (NAS: VPHM) and Baxter International (NYS: BAX) helped the company blow past second-quarter estimates.
So what: Revenue improved more than sevenfold to $23.2 million, with $18 million of that coming in upfront payments made by ViroPharma and Intrexon. Profits zoomed to $0.03 a share, reversing last year's $0.13 loss. Analysts were expecting a $0.13 loss on $4.95 million in revenue, according to data compiled by Yahoo! Finance.
Now what: Clearly there's momentum here, but the growth story could also be just beginning. Should ViroPharma like and broadly adopt Halozyme's enzyme technology, tens of millions more in milestone payments could lead to healthy gains for investors. Do you believe that's a likely outcome? Do you doubt it? Weigh in using the comments box below.
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