Great NEWS yesterday AH....
FYI:
Halozyme and Roche Enter Agreement for the Application of Enhanze, A Novel Technology to Improve Drug Delivery
Tuesday December 5, 5:48 pm ET
BASEL, Switzerland and SAN DIEGO, Dec. 5 /PRNewswire/ -- Halozyme Therapeutics, Inc. (Amex: HTI - News) and Roche today announced they have entered into an agreement to apply Halozyme's proprietary Enhanze(TM) Technology to Roche's biological therapeutic compounds. Enhanze Technology is Halozyme's proprietary drug delivery technology based on its recombinant human hyaluronidase (rHuPH20). rHuPH20 is an analogue of a human enzyme that temporarily clears space in the matrix of tissues such as skin. This clearing activity should allow rHuPH20 to improve drug delivery by enhancing the entry of therapeutic molecules through the subcutaneous space.
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"Roche is a global leader in the development of biologics and we are excited to be applying our rHuPH20 technology to this area with Roche compounds," said Jonathan Lim, MD, Halozyme's President and CEO. "We believe that our technology can enhance the clinical benefits that biologics have already been shown to provide. In every respect, both technically and commercially, this represents a landmark agreement for Enhanze Technology and for Halozyme."
"We are looking forward to working together with Halozyme using their rHuPH20 technology," said Peter Hug, Roche's Global Head of Pharma Partnering. "The potential to improve the administration and bioavailability of subcutaneous medicines presents an important advance to make a difference to patients' lives."
Halozyme Roche Collaboration
Under the terms of the agreement, Roche will pay Halozyme $20 million as an initial upfront payment for the application of rHuPH20 to three pre-defined Roche biologic targets. Over the next ten years, Roche will also have the option to exclusively develop and commercialize rHuPH20 with an additional ten targets. Pending the successful completion of a series of clinical, regulatory, and sales events, Roche may pay Halozyme further milestones which could potentially reach a value of up to $111 million as well as royalties on potential product sales for the first three targets. For each of the additional ten targets, Roche may pay Halozyme further upfront and milestone payments of up to $47 million per target. In addition, the Roche Venture Fund will make an $11 million equity investment, representing approximately 5% of Halozyme's outstanding common stock.
Under the collaboration, Roche will also obtain access to Halozyme's expertise in developing and applying rHuPH20 to Roche targets. Roche will obtain a worldwide, exclusive license to develop and commercialize product combinations of rHuPH20 and Roche target compounds resulting from the collaboration.
Today will be very very interesting... ::)
=IdFix=
Interesting PM... :o
http://www.nasdaq.com/aspxcontent/ExtendedTradingTrades.aspx?mode=frameset&kind=&symbol=hti&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&symbol=&selected=hti&FormType=&mkttype=PRE&pathname=&page=afterhours
HTI about to fly soon!!! Really cheap stock!
4.64
Thursday, December 07, 2006
HTI the cheapest biggest potential stock on the planet?
HTI trades @ 4.75
HTI is a biotech company that just landed a huge deal with Roche for a potential $600 million windfall for the company (HTI) if certain milestones are met. Several analysts upgraded the stock with a high target of $10. HTI has technology that could revolutionize the pharma research industry, kinda like LMRA's proteomic processor.
short/intermediate/longer term play.
SO CHEAP is my opinion. See you at $10.
My goodness, a $600 million deal with Roche!!!!!!!! When's the last time we see that with any biotech deal?
HTI is an absolute cheap stock is my opinion! And i don't always give opinions! roflmao
Trending higher very nicely. I suspect the stock to ramp up hard at the close.
Watching HTI.... 9SMA is falling behind it should catch up in 3 to 5 sessions ;)
;D This stock is on steroids. Not letting up a single bit.
HTI kaboom!!!! ;D
Hearing wishful thinkers on the yahoo board claiming this stock has Microsoft potential.
lol :'(
from thestreet.com:
Let's Make a Deal
Halozyme is a biopharmaceutical company that is attempting to commercialize recombinant human enzymes for use in drug delivery, palliative care, oncology and infertility markets.
The agreement allows Roche to use Halozyme's Enhanze Technology as a new delivery regimen to attack up to 13 targets with drugs it has commercialized and is developing. The targets and drugs in question are not being disclosed for competitive reasons.
Enhanze is Halozyme's proprietary drug-delivery technology based on its recombinant human hyaluronidase (rHuPH20). This analogue of a human enzyme temporarily clears space in the matrix of tissues such as skin, an effect that promises to improve the delivery of the drugs it is used with.
Roche made a $20 million upfront payment for the rights, and future milestone payments in the coming several years could amount to as much as $581 million if efficacy is proven and regulatory approvals are given. Roche further invested $11 million in Halozyme, amounting to 5% of the firm. By my calculation, that means Roche bought about 3.25 million new shares of HTI for approximately $3.38 each.
Recall, however, that in my Nov. 27 column, I had put more emphasis on Hylenex than either Enhanze or Chemophase as the most likely near-term upside catalyst for Halozyme. I did so based on the fact that Hylenex (which improves the delivery of numerous injectable drugs using the same basic mechanism as Enhanze) had a firm launch date by June 2007. Adding to my bullishness on Hylenex is the fact that sales monolith Baxter Healthcare (BAX) is Halozyme's partner in that launch. The potential for big-name partnerships related to Enhanze, by contrast, had no such definite launches.
Strange, New Value
I'm thrilled to have been proven wrong. But I do have the wonderful new burden of trying to determine if the $270 million or so in market cap investors added to Halozyme in the past week is not enough, too much or just right, given the news.
My conclusion: not enough.
Sure, $270 million may fully discount the potential for future milestone and royalty payments from this Roche deal, but the larger importance is that the deal validates Enhanze's business model. It makes it more likely that other partners will jump on the Enhanze bandwagon sooner rather than later.
Roche has reserved only 13 of around 40 commercial and Phase III pipeline targets with its deal. There are also more than 1,000 more targets if you count discovery to Phase II target possibilities. That leaves plenty of opportunity for Halozyme to monetize its Enhanze asset further.
I would further argue that the potential of Baxter's Hylenex launch still isn't fully accounted for, and who knows what clinical surprises Chemophase can deliver later in 2007?
So, a bit to my own surprise, I'm not taking profits yet. I even believe the stock remains a good bet for new buyers. Insider Randal Kirk seems to feel the same way. A major buyer of HTI last summer when it traded around $2.50, he invested nearly $500,000 more after the recent spike to $6.16.
While this stock no doubt will pull back sooner or later -- perhaps even severely -- on profit-taking, Halozyme's 12-month prospects look even better to me now that a second of Halozyme's major initiatives has been validated.
;D HTI is probably the best speculative biotech stock out there. jmho
:D The action should bold well for next week.
booyah!! It's flying now!!
already at 7
Damn HTI runaway fro me :(
Should see a record high today.
Ram
http://biz.yahoo.com/e/070214/hti8-k.html
Form 8-K for HALOZYME THERAPEUTICS INC
14-Feb-2007
Entry into a Material Definitive Agreement
Item 1.01 Entry into Material Definitive Agreement.
On February 13, 2007, a subsidiary of Halozyme Therapeutics, Inc. ("Halozyme"), Halozyme, Inc., Baxter Healthcare Corporation ("BHC") and Baxter Healthcare S.A. ("BHSA" and along with BHC, collectively, "Baxter") entered into the following agreements:
• Enhanze License and Collaboration Agreement (the "License");
• Amended and Restated Exclusive Distribution Agreement (amending that certain Exclusive Distribution Agreement between the parties dated as of August 13, 2004, as amended on March 24, 2005 and December 8, 2005) (the "Distribution Agreement"); and
• Amended and Restated Development and Supply Agreement (amending that certain Development and Supply Agreement between the parties dated as of March 24, 2005) (the "Development Agreement" and along with the License and Distribution Agreement, the "Agreements").
Under the terms of the License, Baxter will obtain a worldwide, exclusive license to develop and commercialize product combinations of rHuPH20, Halozyme's proprietary recombinant human hyaluronidase, with Baxter hydration fluids and generic small molecule drugs (with the exception of combinations with
(i) bisphosphonates as well as (ii) cytostatic and cytotoxic chemotherapeutic agents, the rights to which have been retained by Halozyme). In addition, Baxter will pay royalties on the sales, if any, of the products that result from the collaboration. Under the terms of the Distribution Agreement, Baxter paid Halozyme an initial upfront payment of $10 million and, pending the successful completion of a series of regulatory and sales events, Baxter may make milestone payments which could potentially reach a value of up to $25 million. In addition, Baxter will pay royalties on the sales of products covered under the Distribution Agreement. Baxter prepaid $1 million of these royalties in connection with the execution of the Agreements and Baxter will be obligated to prepay $9 million of additional royalties on or prior to January 1, 2009. Under the terms of the Development Agreement, Baxter will now assume all development, manufacturing, clinical, regulatory, sales and marketing costs of the products covered by the Distribution Agreement. In addition, on February 13, 2007, an affiliate of Baxter purchased 2,070,394 shares of Halozyme's common stock for an aggregate of $20 million (as further described in Item 3.02 below). The preceding description of the Agreements is a summary of the material terms of those agreements and does not purport to be complete. The descriptions of the Development Agreement and Distribution Agreement are qualified in their entirety by the copies of such agreements which will be filed in a subsequent Form 8-K/A.
Item 3.02 Unregistered Sales of Equity Securities.
On February 13, 2007, Halozyme sold 2,070,394 shares (the "Shares") of its common stock, $0.001 par value per share (the "Shares"), to Baxter International Inc. ("BII") pursuant to a Stock Purchase Agreement (the "Purchase Agreement"). The Shares were sold at a per share purchase price of $9.66 per share and Halozyme received gross proceeds of $20 million. The per share purchase price represented a 25% premium to the average closing price of Halozyme's common stock as reported by the American Stock Exchange over the thirty (30) trading days immediately preceding the date of the Purchase Agreement.
No shareholder approval was required for the sale of the Shares. BII represented that it is an accredited investor as defined in the Securities Act of 1933, as amended (the "Securities Act"), and the Shares were sold pursuant to exemptions from registration under Regulation D of the Securities Act. Proceeds from the sale of the Shares will be used to support Halozyme's ongoing operations, including research and development activities, as well as for other general corporate purposes.
Halozyme has not filed a registration statement with the Securities and Exchange Commission (the "SEC") covering the resale of the Shares, but BII may request that Halozyme register the Shares after the earlier of (i) the two year anniversary of the sale of the Shares or (ii) the date upon which Halozyme's Board of Directors announces the approval of a change of control transaction. Halozyme will not be required to register the Shares if BII and Halozyme mutually agree that the Shares may be sold pursuant to the provisions of Rule 144 under the Securities Act of 1933, as amended.