) recently entered into two deals. While one deal was signed with
Halozyme Therapeutics, Inc.
), the second deal was signed with clinical intelligence company,
Under the agreement with Halozyme, Pfizer will develop and
commercialize products using its proprietary biologics in
combination with Halozyme's Enhanze technology. Enhanze,
Halozyme's proprietary drug delivery platform, is based on the
company's patented recombinant human hyaluronidase enzyme
Up to six targets will be developed and commercialized by
Pfizer using Halozyme's rHuPH20. Pfizer will initially pay $8
million including an upfront fee for exclusive licenses to two
identified targets in the primary and specialty care settings.
Besides this, Halozyme is entitled to receive payments based on
the achievement of development, regulatory and sales milestones.
Halozyme will also receive royalties on net sales of licensed
Under the second agreement, Pfizer and Humedica will work on
combining clinical informatics and life science knowledge so as
to gain a better understanding of the needs of patients and the
effectiveness of treatments. This should help improve patient
While Halozyme shares were up on the news regarding its
agreement with Pfizer, we do not expect the Halozyme or the
Humedica agreements to have any impact on Pfizer's shares. We
currently have a Neutral recommendation on both Pfizer and
Halozyme. Both stocks carry a Zacks #3 Rank (Hold). We expect
near-term earnings at Pfizer to be driven by cost cutting efforts
and share repurchases. Longer-term growth will be dependent on
the success of drug development.
Pharma stocks that currently look more attractive include
). Both companies carry a Zacks #2 Rank (Buy).
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PFIZER INC (PFE): Free Stock Analysis Report
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