Why Halozyme Therapeutics Inc. Shares Soared
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 Halozyme Therapeutics , a biopharmaceutical company focused on developing human enzymes which help facilitate the drug delivery process, surged as much as 21% after announcing that it planned to resume patient enrollment and dosing in Study 202 which is evaluating PEGPH20 in patients with pancreatic cancer.
So what: According to Halozyme's press release which came after the bell last night, the Food and Drug Administration removed the clinical hold that was in place on patient enrollment and dosing following a recommendation from the independent data monitoring committee in May that the study resume under revised protocol. The study was originally placed on hold in early April due to thromboembolic event concerns, but that appears to be well in the rearview mirror with today's announcement.
Now what: I've said it a number of times before and I'm going to say it again: there's no reason that the temporarily hold on PEGPH20 trials should have had such a large effect on Halozyme's share price. PEGPH20 is still very early in the development process and investors should instead be turning their attention toward MabThera SC, which utilizes Halozyme's proprietary subcutaneous delivery technology, and Hylenex, which met the primary endpoint of non-inferiority of A1c levels after six months for a new formulation in the CONSISTENT-1 trial. In my opinion Halozyme shares appear to be on the precipice of profitability within the next 12-24 months and they could represent a sneaky value play in the biotech sector as long its developing pipeline continues to cooperate. I'd suggest biotech-savvy investors add Halozyme to their watchlist.
Halozyme shares may have soared today, but it'll likely struggle to keep pace with this top stock over the long run
Give us five minutes and we'll show how you could own the best stock for 2014. Every year, The Motley Fool's chief investment officer hand-picks one stock with outstanding potential. But it's not just any run-of-the-mill company. It's a stock perfectly positioned to cash in on one of the upcoming year's most lucrative trends. Last year his pick skyrocketed 134%. And previous top picks have gained upwards of 908%, 1,252% and 1,303% over the subsequent years! Believe me, you don't want to miss what could be his biggest winner yet! Just click here to download your free copy of "The Motley Fool's Top Stock for 2014" today.
The article Why Halozyme Therapeutics Inc. Shares Soared originally appeared on Fool.com.Sean Williams has no material interest in any companies mentioned in this article. You can follow him on CAPS under the screen name TMFUltraLong, track every pick he makes under the screen name TrackUltraLong, and check him out on Twitter, where he goes by the handle @TMFUltraLong.The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
Copyright © 1995 - 2014 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.