Keep an eye on Halozyme Therapeutics (HALO).

Last trading at $60.81, we’d like to see it refill its bearish gap at around $64 initially. 

Helping, analysts at Morgan Stanley just upgraded HALO to overweight with a price target of $75. The firm believes the company will be positively impacted by the passage of the One Big Beautiful Bill, which includes the ORPHAN Cures Act.

The ORPHAN Cures Act, according to Save Rare Treatments, “is bipartisan legislation that would maintain existing incentives and boost research into new treatments for the 30 million Americans currently suffering from one of more than 7,000 rare diseases. The bill would achieve this by amending the Inflation Reduction Act’s harmful orphan drug exclusion and incentivizing critical follow-on investment into rare disease drug development.”

Earnings Have Also Been Solid

In its most recent quarter, the company’s EPS of $1.54 beat estimates by 31 cents. Revenue of $325.7 million, up 40.8% year over year, beat by $39.78 million.

According to Dr. Helen Torley, President and CEO:

“The strong results highlight the momentum and durability across our business, powered by high-margin royalty streams and increasing global demand for our industry-leading ENHANZE drug delivery technology. In the quarter, we completed a total of $303 million in share repurchases, including the $250 million program that we announced in May. Our outperformance and strong cash generation supports a balanced capital allocation strategy, including investing in growth through M&A and returning capital to shareholders.”

Sincerely,

Ian Cooper