Halozyme Therapeutics, Inc (NASDAQ: HALO) rose on revealing a collaboration and license agreement with Bristol-Myers (NYSE: BMY) using Halozyme's ENHANZE technology. Halozyme Therapeutics raised its FY sales outlook.
The Halozyme ENHANZE technology is based on a proprietary recombinant human hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan -- a glycosaminoglycan or chain of natural sugars in the body -- to aid in the dispersion and absorption of other injected therapeutic drugs.
This technology reportedly may allow for more rapid delivery of large volume injectable medications, such as medications that are currently delivered intravenously, through subcutaneous delivery.
Halozyme CEO Helen Torley said, “The Halozyme ENHANZE technology is based on a proprietary recombinant human hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan -- a glycosaminoglycan or chain of natural sugars in the body -- to aid in the dispersion and absorption of other injected therapeutic drugs.
“This technology may allow for more rapid delivery of large volume injectable medications, such as medications that are currently delivered intravenously, through subcutaneous delivery.”
Under the terms of the agreement, Halozyme will receive an initial $105 million for access to the ENHANZEtechnology. Bristol-Myers Squibb has designated multiple immuno-oncology targets including programmed death 1 (PD-1) and has an option to select additional targets within five years from the effective date.
For Bristol-Myers Squibb, the transaction is expected to be dilutive to Non-GAAP earnings per share (EPS) in 2017 and 2018 by approximately $0.01, and by approximately $0.05 in 2019.
Bristol Myers stock gained 19 cents to $62.67, while shares in Halozyme galloped $2.27, or 17.2%, to $15.45
