Scale Into HALO In Front Of Roche 'Investor Day'; Insiders Still Buying

Shares of Halozyme Therapeutics (NASDAQ:HALO) have recovered nicely since the stock was cut in half on news related to the company’s partnered products with Baxter (NYSE:BAX) and ViroPharma (NASDAQ:VPHM). Since HALO’s low on August 2nd (previous coverage here), the stock has risen 47%, as investors realized that the BAX and VPHM products have potential to get back on track, and more importantly, that partnered products with Roche (OTC:RHHBY) were unaffected by the FDA’s request. Wall Street Analysts have an average price target for HALO of $8, most of which is based on the Roche-partnered product candidates using discounted cash flow analysis. Importantly, Roche will host its ‘Investor Day 2012’ in London on Sept. 5th, and it is likely that comments will be made on the progress of SC-Herceptin and SC-Rituxan (MabThera), the two primary products partnered with Halozyme.  Notably, these line extensions are extremely important to Roche, as they are being developed to protect roughly $11 billion in combined sales of these blockbuster cancer drugs. SC-Herceptin is anticipated to launch in the first half of next year in Europe, and SC-Rituxan in late 2013 or early 2014. (more…)