Leerink views ‘major deal’ on Entyvio as positive for Halozyme

Leerink notes Halozyme (HALO) issued a press release announcing that it entered into an exclusive license agreement with Takeda (TAK) in December 2025 to develop an ENHANZE version of Entyvio. Halozyme will receive an upfront payment and is entitled to up to low- to mid-single-digit royalties on sales. Leerink notes that the royalty rate on Entyvio is lower than the rates Halozyme historically achieved, which have been characterized as “mid-single digit,” likely because ENHANZE goes off patent in 2029. It is unclear to the firm if payers will pay a premium for “the ENHANZE’d version” of Entyvio after it loses exclusivity in 2032 and the biosimilar price is a small fraction of the branded drug price. Nonetheless, Leerink views the announcement as positive, as management delivered on its commitment to secure an ENHANZE partnership with a major pharmaceutical company on a blockbuster asset. The firm has a Market Perform rating on Halozyme shares.