Halozyme Therapeutics Inc (NASDAQ:HALO) is surging today, currently up $2.42 and trading at $15.60 – an 18.4 percent gain from yesterday’s closing price. The boost arrived on the heels of the announcement that the company lifted its revenue outlook for the current year by a whopping $130 million, thanks to a new licensing agreement with Bristol-Myers Squibb Co (NYSE:BMY).
The two drug makers will be collaborating on the development of subcutaneously administered immuno-oncology therapies from Bristol-Myers using Halozyme’s Enhanze drug delivery platform.
“Bristol-Myers Squibb has one of the industry’s most advanced and extensive immuno-oncology portfolios with a clear commitment to patient-centered innovation,” said Halozyme’s President and Chief Executive Officer, Dr. Helen Torley. “Through this collaboration we are excited to explore the potential for ENHANZE to expand the number of cancer patients who may receive their therapies as a rapidly administered subcutaneous injection.”
Halozyme is set to be paid $105 million upfront for its new partner to have access to its drug delivery system. After that initial payment, the company is eligible to receive $160 million per drug target – and there can be up to 11 targets.
In a separate, unrelated deal, Halozyme also inked a collaboration agreement with Roche – a Swiss pharmaceuticals company. Roche had already licensed Enhanze back in 2006. This time around, Halozyme will be paid $30 million upfront for access to the technology.
As a result of the two new collaboration agreements, Halozyme told investors that it was lifting its full-year revenue guidance from its previous range of $115 million to $130 million to the new range of $245 million to $260 million.
Following the news, Piper Jaffray announced that it was lifting its price target on the company’s stock from $20.00 to $26.00 – while reiterating an Overweight rating.
The author of this article holds no position in any of the companies mentioned above.