PTAB Ruling Clouds MDASE Outlook, But ENHANZE Royalty Engine Remains Intact

Research evidence excerpt

PTAB Ruling Clouds MDASE Outlook, But ENHANZE Royalty Engine Remains Intact

TD Cowen Halozyme

Global Research May 13, 2026

VALUATION METHODOLOGY AND RISKS

Valuation Methodology

Biotechnology:

In calculating our 12-month target price, we employ one or more valuation methodologies,

which include a discounted earnings analysis, discounted cash flow analysis, net present value

analysis and/or a comparable company analysis. These analyses may or may not require

the use of objective measures such as price-to-earnings or price-to-sales multiples as well as

subjective measures such as discount rates.

We make investment recommendations on certain early stage, pre-revenue companies based

upon an assessment of their business model, technology, probability of market success,

and the potential market opportunity, balanced by an assessment of applicable risks. Such

companies may not be assigned a price target.

Investment Risks

There are multiple risks that are inherent with an investment in the biotechnology sector.

Beyond systemic risk, there is also clinical, regulatory, and commercial risk. Additionally,

biotechnology companies require significant amounts of capital in order to develop their

clinical programs. The capital-raising environment is always changing and there is risk that

necessary capital to complete development may not be readily available.

Risks To The Price Target

Forecasting sales for any biotechnology or therapeutic product is difficult, and the outlook

could be altered by clinical development failures or reimbursement changes. New competition

could also affect our sales estimates and pipeline products might fail in development. Risks

include clinical development, regulatory, pricing, and commercial challenges that may prevent