Halozyme Therapeutics Inc. said Friday it has reached an agreement with Pfizer to develop injectable versions of the drugmaker's biotech drugs.
San Diego-based Halozyme (Nasdaq: HALO) specializes in a recombinant hyaluronidase enzyme technology, which is designed to temporarily break down a substance in the body that forms a barrier between cells so drugs can be absorbed faster. That would allow some drugs to be delivered by an injection instead of an IV drip.
Under the terms of the agreement, Halozyme has granted to Pfizer (NYSE: PFE), based in New York, a license to develop and release up to six products using its enzyme technology. Halozyme will receive an initial payment of $8 million, which includes the upfront fee for exclusive licenses to two specified drugs in primary care and specialty care, and the right for Pfizer to choose up to four additional targets after additional payments.
Halozyme is entitled to additional payments of up to $507 million if Pfizer's products reach certain regulatory and sales milestones. The company is also entitled to additional royalty payments on sales of the drugs.
Shares of Halozyme surged 27 percent, or $1.49, to close at $7.01 Friday.