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Halozyme Soars on European Regulatory Approval (HALO)

Shares of Halozyme were up nearly 25 percent on news that European regulators approved an improved way to administer a key breast cancer treatment.

Halozyme (NASDAQ: HALO) is a small San Diego-based company that announced that it figured out how to administer a breast cancer drug more rapidly. Roche Holdings’ drug Herceptin, a drug used to treat an aggressive form of breast cancer called HER-2, is currently administered through an IV which takes from 30 to 90 minutes. Halozyme developed an enzyme that breaks down the drug allowing it to be administered via an injection.

On Friday, the company announced that the European Medicines Agency’s Committee for Medicinal Products for Human Use recommended that it be approved. This news sent shares soaring $1.58 to $7.95.

This product, according to Halozyme CEO Gregory Frost, has big upside potential for the company. “This is certainly a product that puts us on a trajectory toward profitability,” Frost told MarketWatch.

He went on to say that two-thirds of the market for the drug is in Europe where Roche resides. Another third is in the United States but getting approval in Europe doesn’t necessarily mean that the FDA will say yes as well.

“It certainly is a very large product. It’s also a product that is very important to women with HEP-2 breast cancer,” he said.

Disclosure: At the time of this writing, the author had no position in the companies mentioned.

[stock-tools exchange="NASDAQ" symbol="HALO" image_height="230" image_width="350"]

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