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Horizon (HZNP) and Halozyme Ink Deal for ENHANZE Technology

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Horizon Therapeutics plc (HZNP - Free Report) and Halozyme Therapeutics, Inc. (HALO - Free Report) entered into a collaboration and license agreement that gives the former exclusive access to the latter’s ENHANZE drug delivery technology for subcutaneous (SC) formulation of medicines targeting IGF-1R.

Shares of Horizon have surged 93.5% year to date while the industry did not show any movement.

Horizon plans to use ENHANZE to develop an SC formulation of its lead drug, Tepezza (teprotumumab-trbw), which is indicated for the treatment of Thyroid Eye Disease, which is a serious, progressive and vision-threatening rare autoimmune disease. The company wishes to provide greater flexibility to patients and physicians and thus, wants to bring out an SC version of Tepezza.

Per the agreement, Horizon will make an upfront payment of $30 million to Halozyme and will have to make potential future payments of up to $160 million in aggregate. The future payments will be,subject to achievement of specified development, regulatory and sales-based milestones. Halozyme will also be entitled to receive mid-single-digit royalties on sales of commercialized medicines using the ENHANZE technology.

This is Horizon’s tenth collaboration and license agreement for the ENHANZE technology.

 

Zacks Rank & Stocks to Consider

Horizon currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the healthcare sector include ASLAN Pharmaceuticals Ltd. (ASLN - Free Report) and Abeona Therapeutics Inc. (ABEO - Free Report) ,both carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ASLAN’s loss per share estimates have narrowed from 42 cents to 40 cents for 2020 and from 60 cents to 57 cents for 2021 over the past 60 days. Shares of the company have decreased 37.5% year to date.

Abeona’s loss per share estimates have narrowed from 96 cents to 88 cents for 2020 and from 69 cents to 64 cents for 2021 over the past 60 days. Shares of the company have decreased 52% year to date.

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