Dr. Sarah K. Browne,right, talks with patient Kim Nguyen at National Institute of Health in Bethesda, Md., Wednesday, Aug. 22, 2012. Researchers have identified a mysterious new disease that has left scores of people in Asia and some in the United States with AIDS-like symptoms even though they are not infected with HIV. The patients' immune systems become damaged, leaving them unable to fend off germs as healthy people do. Kim Nguyen, 62, a seamstress from Vietnam who has lived in Tennessee since 1975, may have been in danger of that when she first sought help for a persistent fever, infections throughout her bones and other bizarre symptoms in 2009. She had been sick off and on for several years and had visited Vietnam in 1995 and again in early 2009. (AP Photo/Pablo Martinez Monsivais) , right, talks with her patient Kim Nguyen, left, in from Tenn., in her room at National Institute of Health in Bethesda, Md. Wednesday, Aug. 22, 2012. (AP Photo/Pablo Martinez Monsivais)

Halozyme shares up on positive European opinion

Published: 07:50:49 PM, Fri 22 March 2013 UTC

Halozyme Therapeutics Inc. shares jumped Friday after the biopharmaceutical company said it received a positive opinion from a European panel for one of its treatments.

THE SPARK: Halozyme and Baxter International Inc. said Friday the European Medicines Agency's Committee for Medicinal Products for Human Use granted a positive opinion for the use of HyQvia as a replacement therapy for adult patients with primary and secondary immunodeficiencies.

THE BIG PICTURE: The immune system normally protects the body from bacteria, viruses, fungi and other pathogenic microorganisms that can cause infectious diseases. If someone suffers from immunodeficiency, part of the body's immune system is missing or does not function properly, making them more likely to suffer infections and it may take longer to recover from infections.

When a defect in the immune system is inherited, it is called primary, or inherited, immune deficiency. Secondary immunodeficiencies develop as a result of a variety of conditions, such as some forms of leukemia, metabolic disease or malnutrition. Burns or severe infection can also cause defective immune function and poor antibody response

Upon receiving authorization from the European Commission, Baxter plans to launch HyQvia in some countries in the European Union later this year.

THE ANALYSIS: While investors drove up the stock Friday, Wedbush analysts Gregory Wade, David Nierengarten and Christopher Marai reiterated a "Neutral" rating on the company's shares.

The analysts said in a research note that HyQvia does not represent a significant opportunity to Halozyme and it represents only part of Baxter's $1.4 billion in annual antibody therapy sales worldwide. They noted that Halozyme's royalty on the drug's sale is only 5 percent. As a result, they said they don't see much more than $1 per share in value to this product for the company.

SHARE ACTION: Shares of Halozyme jumped more than 31 percent to $6.89 in late trading. Its stock remains in the middle of its 52-week trading range of $3.86 to $13.50. Baxter's shares rose 74 cents, or 1 percent, to $70.80.

Tags: european union, european commission, european medicines agency, baxter, baxter international inc., halozyme, halozyme therapeutics inc., human, science_technology, cents, medicine, authorization, late trading, infections, 52-week trading range, share action, spark, result, committee, percent, friday, stock, big picture, shares, infectious disease, infection, research note, immune system, bacteria, treatments, antibody, infectious diseases, malnutrition, biopharmaceutical company, immunology, suffers, adult patients, halozyme shares, replacement therapy, significant opportunity, medicinal products, immune deficiency, immunodeficiency, severe infection, secondary immunodeficiencies, positive opinion, defective immune function, positive european opinion, wedbush analysts gregory, therapy sales worldwide, european panel, pathogenic microorganisms, poor antibody, annual antibody, hyqvia, metabolic disease, david nierengarten, christopher marai

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