Halozyme Therapeutics Inc. (HALO), a developer of drug-delivery systems, jumped the most in six years after announcing a collaboration with Pfizer Inc. (PFE) to develop as many as six injectable medicines.
Halozyme rose 27 percent to $7.01 at the close in New York, its largest single-day increase since December 2006. The deal includes an $8 million payment to Halozyme, future fees that may reach $507 million and the potential for royalties based on sales of licensed products, the San Diego-based company said in a statement today.
Halozyme, which had $56.1 million in sales last year, uses human enzymes to modify biotechnology medicines so they can be administered through an injection, rather than intravenously. The agreement includes a license to develop two specific treatments and the right for Pfizer, the world’s largest drugmaker, to choose as many as four other targets, according to the statement.
The deal “has the potential to enhance Pfizer’s ability to optimize treatments for patients,” Jose Carlos Gutierrez-Ramos, a senior vice president at New York-based Pfizer, said in the statement.
“What this does is just expand the universe of when people think about how this technology can be used for biologics,” Gregory Frost, Halozyme’s chief executive officer, said in an interview. “On the partnership side, this certainly warms things up, but I think folks have had a lot of interest in the pharma space for our technology in general.”
Halozyme had fallen 42 percent this year through yesterday as U.S. regulators rejected an immune-deficiency treatment the company developed with Baxter International Inc. (BAX) and halted a study involving the therapy in collaboration with ViroPharma Inc. (VPHM)
Pfizer fell 1.4 percent to $25.08.
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