Shares of Halozyme Therapeutics Inc. rocketed 13% in premarket trade Thursday, after the biotechnology company announced a license agreement with Bristol-Myers Squibb Co. , to develop subcutaneously administered Bristol-Myers immuno-oncology medicines using Halozyme’s drug-delivery technology. Under terms of the deal, Halozyme will receive $105 million upfront, will have the potential to earn up to an additional $160 million in milestone payments and will receive royalties on sales of products. As of result of the deal, Halozyme raised its 2017 revenue outlook to $245 million to $260 million from $115 million to $130 million. Bristol-Myers expects the deal to reduce 2017 and 2018 adjusted earnings per share by a penny and 2019 EPS by 5 cents. Bristol-Myers’ stock slipped 0.1% ahead of the open. Over the past three months, Halozyme shares have slipped 0.2% through Wednesday, while Bristol-Myers’ stock has rallied 15% and the S&P 500 has gained 2.5%.
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