Halozyme's Subcutaneous Drug Delivery: Analysts Initiate With 'Buy' Rating, Say Enhanze Tech Targets $41.7B Market

HC Wainwright has initiated coverage on Halozyme Therapeutics Inc HALO with a Buy rating and a price target of $61, citing the company's cutting-edge subcutaneous drug delivery platform.

The analysts, Raghuram Selvaraju and Mitchell Kapoor, write that Halozyme's unique enzyme, rHuPH20 (Enhanze), breaks down hyaluronan in the extracellular matrix of the subcutaneous (SC) area, thus overcoming the obstacles to bulk fluid flow and enhancing the swift and efficient under-the-skin delivery of injectable biologics and small molecules. 

Enhanze lessens treatment strain, enables fixed-dose SC dosing, and averts infusion-related reactions, the analysts note.

Crucially, Enhanze permits therapeutics to be self-administered by the patient or a healthcare provider at home, they add.

Partners exploit Enhanze to extend the market exclusivity of medications, prolonging the safeguard beyond the patent expiry date of the partner's unique IV drug. 

The analysts contend that the ability to dispense traditional IV drugs through the SC route revolutionizes the treatment process and improves patients' quality of life. 

Also mentioned by the analysts, is that the U.S. infusion therapy market stood at approximately $41.7 billion in 2021, as per a third-party research report— and the Enhanze technology has the potential to seize a considerable segment of this market and might even enlarge the market size.

The analysts note that beyond Halozyme's Enhanze business, the company has two additional pillars to its operations: 

• Commercial product portfolio obtained through the acquisition of Antares Pharma.
• Development and commercialization of drug-device combination products leveraging a novel auto-injector technology.

Price Action: HALO shares are down 0.45% at $42.70 on the last check Monday.

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