San Diego drugmaker Halozyme Inc. has bagged two separate deals to partner its technology with Big Pharma drugs, adding $135 million to the company’s coffers and nearly $2 billion in potential future income.
Halozyme’s technology, called Enhanze, makes biologic medicines easier for patients to take, reducing hours-long infusions to minutes-long injections. The tech has already drawn interest from pharma, with six past deals with Pfizer Inc., Eli Lilly and Co., Janssen Biotech Inc., AbbVie Inc., Roche AG, and Shire Plc.
In the latest agreement, Bristol Myers Squibb joins the pack in Halozyme’s largest partnership deal to date. The company is teaming up with Halozyme on 11 cancer drug trials, giving the local company $105 million in an upfront payment and up to $1.76 billion in milestone payments and royalties should the drugs come to market.
Halozyme is also expanding its collaboration with Roche, adding one new drug target to the mix. Halozyme recieved $30 million upfront payment for the expansion, and $160 million in potential milestone payments.
After the deals were announced, Halozyme updated its financial guidance for fiscal 2017. The company now expects net revenue of $245 million to $260 million for the year. Interestingly, the company said its operating expenses are not expected to increase, which means the company now expects an operating cash flow of $50 million to $60 million by year’s end.
The public biotech plans to end the year with a sizable stack of cash on the balance sheet totaling $380 million to $395 million, which is quite unusual for a company of Halozyme’s size.
Investors responded positively to the news, with the company’s stock price jumping 17 percent by mid-morning Thursday. The rising stock has brought the company’s market cap to $2.2 billion.