Halozyme in potential $1.19 billion deal with AbbVie

Shares of US biotech firm Halozyme Therapeutics (Nasdaq: HALO) rose 7% to $19.25 in mid-morning trading, after the company revealed it has entered into a global collaboration and license agreement with AbbVie (NYSE: ABBV) to develop and commercialize products combining proprietary AbbVie compounds with Halozyme's ENHANZE platform, potentially valued at $1.19 billion.

Under the terms of the accord, Halozyme will receive an initial $23 million, followed by milestone payments totaling around $130 million for each of up to nine collaboration targets. These payments are subject to AbbVie's achievement of specified development, regulatory and sales-based milestones. In addition, AbbVie will pay Halozyme tiered royalties if products under the collaboration are commercialized.

The Halozyme ENHANZE platform is based on a proprietary recombinant human hyaluronidase enzyme (rHuPH20) that temporarily degrades hyaluronan, a chain of natural sugars in the body, to aid in the dispersion and absorption of other injected therapeutic drugs. For AbbVie, this technology may allow for more rapid delivery of injectable medications through subcutaneous delivery.