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Investing.com - H.C. Wainwright raised its price target on Halozyme Therapeutics (NASDAQ:HALO) to $85.00 from $75.00 on Monday, while maintaining a Buy rating on the stock. The company, which boasts an Excellent Financial Health score and a perfect Piotroski Score of 9 according to InvestingPro, appears undervalued based on comprehensive Fair Value analysis.
The price target increase follows Merck & Co.’s FDA approval for subcutaneous Keytruda across 38 tumor indications, with expectations of 40% conversion from intravenous Keytruda within 18-24 months.
H.C. Wainwright noted that if Halozyme prevails in ongoing litigation with Merck, a mid-single-digit royalty on Keytruda’s approximately $30 billion annual revenue could yield $900 million to $2.1 billion annually for Halozyme.
The firm highlighted that this potential royalty stream could be larger than Halozyme’s entire FY25 royalty guidance of $825-860 million, which currently excludes any subcutaneous Keytruda royalties.
H.C. Wainwright also pointed out that Halozyme’s MDASE patents covering subcutaneous formulations extend until 2032-2034, meaning a royalty stream could outlast Merck’s IV Keytruda franchise, which faces a 2028 patent cliff.
In other recent news, Halozyme Therapeutics reported its second-quarter 2025 earnings, revealing a mixed financial performance. The company exceeded expectations with an earnings per share (EPS) of $1.54, surpassing the forecasted $1.24 by 24.19%. However, its revenue fell short, coming in at $206 million compared to the expected $286.01 million, marking a significant decrease of 27.97%. Following these results, Citizens JMP increased its price target for Halozyme to $91, maintaining a Market Outperform rating, while also noting that the company’s financial results exceeded both its and consensus estimates. Additionally, Halozyme raised its guidance for 2025. In another development, Morgan Stanley upgraded Halozyme to Overweight, raising its price target to $75, citing the positive impact of the ORPHAN Cures Act. Goldman Sachs also adjusted its price target to $56, maintaining a Neutral rating, following an analysis of the Inflation Reduction Act’s potential impact on Part B drugs. These recent developments reflect a period of significant activity and analyst interest in Halozyme Therapeutics.
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