|Written by GSCR Staff|
|Monday, 29 April 2013 07:27|
Good Morning. We hope everyone had a great weekend. We are going back to the old biotech plays since they are on fire, starting with Halozyme Therapeutics, Inc. (NASDAQ – HALO - $6.28).
The Company specializes in human enzymes and the application of tissue modification under the skin in the delivery of injections and fluids or to abnormal tissue structures. The proprietary Enhanze technology is the foundation for all of Halozyme’s products, which aids in injection of antibodies and other therapeutic molecules and fluids.
One of the deals that HALO has undertaken with Baxter International (NYSE – BAX) is gaining momentum and should become very profitable for the firm. The development of the drug program HyQvia by the two firms is targeted at the primary immunodeficiency indication, which currently has nearly 250,000 patients in the US alone, and has a $1B market potential internationally. Baxter has taken over the development of HyQvia but Halozyme will still be the beneficiary of any milestone payments and royalty fees for revenue.
In last week's Goldman Guide we stressed that bio-tech stocks that are targeting cancer treatment are a short term way to go in the 6 Week Stock Trading System. HALO initiated Phase 2 for its PEGH20 drug targeted for therapy for metastatic pancreatic cancer. This form of cancer is the fourth deadliest, with less than a 6% survival rate. The tumors related to this disease are ‘protected’ and make chemotherapy an almost useless treatment. Ideally, the HALO drug wills breakdown this protection.
As an added bonus, both the EMA and MACD analysis are very bullish in the short term. Look for a pop to $8 by the end of this quarter.
Have a great week!
Disclosure: Goldman Small Cap Research analysts are neither long nor short these shares but may elect to purchase the stock within the next 48 hours.
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