HALO Momentum Expected To Continue

The recent sharp decline in Halozyme Therapeutics (NASDAQ:HALO) last week in fact presented a major buying opportunity for investors, with the shares up roughly 57% since bottoming on July 2nd (see our previous coverage). Investors bidding up the shares have told PropThink that the stock was clearly oversold, and agree that the products being developed with Roche suggest a valuation for HALO in the $7-$8 range by themselves. With $102 million in cash ($1 per share) and no debt, management reiterating on its conference call that it expects to become profitable in 2014, and statements that HALO may have preclinical data to address the FDA’s requests for the Baxter (NYSE:BAX) and ViroPharma (NASDAQ:VPHM) product candidates, the stock remains a good value and could continue to trade higher. (more…)