Halozyme (HALO – Research Report), the Healthcare sector company, was revisited by a Wall Street analyst today. Analyst Mitchell Kapoor from H.C. Wainwright reiterated a Buy rating on the stock and has a $72.00 price target.
Mitchell Kapoor has given his Buy rating due to a combination of factors surrounding Halozyme’s legal and financial prospects. The company has initiated a patent infringement lawsuit against Merck regarding the subcutaneous formulation of Keytruda, which potentially infringes on Halozyme’s MDASE patents. This legal action could result in significant royalty revenues for Halozyme if they win the case, given Keytruda’s substantial market presence and revenue generation.
Moreover, the potential royalties from Keytruda could be a major revenue stream for Halozyme, possibly even surpassing those from their existing subcutaneous Darzalex franchise. The anticipated commercial launch of SC Keytruda in 2025, combined with the possibility of a favorable legal outcome, presents a significant upside that is not yet reflected in Halozyme’s current stock price. Therefore, Kapoor sees this legal decision as a potential catalyst for the stock, justifying the Buy rating.