Dyax Corp. (DYAX), Shire PLC (ADR) (SHPG): An Interesting Bio Play in the Blood Disorder Niche

Given that Halozyme only made $12 million in revenues in the first quarter of 2013, and suffered a net loss of $19 million, the Cinryze SC injection development should be nothing short of an windfall for the company. If all goes well, we are, in effect, looking at a small biotech that will transition from being a loss-making entity to one that makes money from technologies it has developed.

Competitive landscape

Cinryze currently competes with Kalbitor and Firazyr, both of which have an SC injection option. Already approved in the US, these two are awaiting approvals in Europe and Japan, which may affect Cinryze’s market share.

Kalbitor from Dyax Corp. (NASDAQ:DYAX) can be used to manage sudden attacks of HAE, but it is not a permanent treatment measure for patients 16 years or older. In the first quarter ended March 31, 2013, Kalbitor net sales were $8.6 million, up by 8% compared to $8.0 million last year.

The Firazyr SC injection from Shire PLC (ADR) (NASDAQ:SHPG) is used to treat acute attacks of HAE in patients 18 years or older. The medicine has shown success in the treatment of acute HAE attacks. In the first quarter ended in March 31, 2013, Firazyr showed significant growth in sales by 112% to $41.7 million due to higher sales in the US market. Right now, Firazyr SC is the closest competitor to Cinryze, although the latter leads by a margin of $60 million, or about 35%.

Conclusion

Good drugs are rare and costly, and Cinryze’s IV injection, although cumbersome as a delivery mode, has been the most successful if you go by sales figures. Halozyme’s SC injection will jump right into this playing field with a simpler delivery mode for this very successful drug. Just on the basis of this product alone – to say nothing of its very strong pipeline – I will recommend Halozyme as a stock worth considering.

Dr. Kanak Kanti De has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.

The article An Interesting Bio Play in the Blood Disorder Niche originally appeared on Fool.com and is written by Kanak Kanti.

Kanak is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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