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.

Interested in more info on Halozyme Therapeutics?Add it to your watchlist.

At the time this article was published Fool contributorTim Beyersis a member of theMotley Fool Rule Breakersstock-picking team. He didn't own shares in any of the companies mentioned in this article at the time of publication. Check out Tim'sportfolio holdingsandFoolish writings, or connect with him onGoogle+or Twitter, where he goes by@milehighfool. You can also get his insightsdelivered directly to your RSS reader.Try any of our Foolish newsletter servicesfree for 30 days. We Fools don't all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

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