Halozyme downgraded to Sell from Neutral at Goldman Sachs

Goldman Sachs downgraded Halozyme (HALO) to Sell from Neutral with a $56 price target A central debate for Halozyme is the long-term value of its Enhanze royalty model, which faces a substantial post-2030 revenue cliff as roughly 70% of royalties roll off contract between 2030-2035 and appears unlikely to be offset through typical business-development pacing, the analyst tells investors in a research note. Current valuation implies a terminal value that assumes roughly $34B in new partner product revenue by 2041, a level that seems achievable only under optimistic scenarios despite the recent Elektrofi acquisition, the firm says.