- Halozyme (NASDAQ:HALO) is up 12% premarket in response to its announcement that it has out-licensed its ENHANZE drug-delivery technology to Roche (OTCQX:RHHBY) for exclusive development of an undisclosed therapeutic target.
- Under the terms of the deal, HALO will receive $30M upfront, up to $160M in milestones and tiered mid-single-digit royalties on net sales.
- The companies have had a business relationship since 2006. Roche has already developed two subcutaneous formulations of cancer drugs. Recently, the partnership included the clinical study of HALO's PEGPH20 with TECENTRIQ (atezolizumab).
- The company has also out-licensed ENHANZE to Bristol-Myers Squibb (NYSE:BMY) in a deal valued up to $265M with the potential for an additional $1.6B if BMY chooses 10 additional targets. HALO will receive $105M upfront, milestones up to $160M and royalties on net sales.
- ENHANZE is based on HALO's patented recombinant human hyaluronidase enzyme (rHuPH20). It enables certain biologics and other compounds to be delivered via injections under the skin with the aim of providing a more patient-friendly experience.
- Halozyme has raised its 2017 financial guidance to include the upfront payments. Net revenue should be $245M - 260M, up from $115M - 130M. Cash flow ops will be positive $50M - 60M, up from cash consumption of $75M - 85M. Operating expenses of $240M - 250M will remain unchanged.
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