The TAM Playbook: A Framework for Identifying SMID Cap Biotech's Next Billion Dollar Markets

Research evidence excerpt

The TAM Playbook: A Framework for Identifying SMID Cap Biotech's Next Billion Dollar Markets

Equity Research

Industry Update — May 26, 2026

Biotechnology

The TAM Playbook: A Framework for

Identifying SMID Cap Biotech's Next Billion

Dollar Markets

Our Call Derek Archila

We introduce a differentiated TAM framework identifying underappreciated, multi-billion Equity Analyst | Wells Fargo Securities, LLC

Derek.Archila@wellsfargo.com | 617-603-4353

expansion opportunities in SMID-cap biotech—positioning several names for re-rating as

Yanan Zhu, PhDthese markets are recognized.

Equity Analyst | Wells Fargo Securities, LLC

Yanan.Zhu@wellsfargo.com | 415-396-3194

We identify 20 indications through our TAM framework and focus on four with Benjamin Burnett, PhD

the clearest re-rating potential: 1) chronic spontaneous urticaria (CSU); 2) severe Equity Analyst | Wells Fargo Securities, LLC

hypertriglyceridemia (sHTG); 3) head and neck squamous cell carcinoma (HNSCC); Benjamin.J.Burnett@wellsfargo.com | 212-214-5909

and 4) sleep. Across each, we see meaningful gaps between current investor perception Eva Fortea Verdejo, PhD

and ultimate market opportunity, supported by KOL work, payer discussions, evolving Equity Analyst | Wells Fargo Securities, LLC

standard-of-care, and emerging pipelines. Eva.ForteaVerdejo@wellsfargo.com | 212-214-5340

Jacob Goell, PhD

CSU is underappreciated and there will be an inflection in 2L+ as ~40% rates of Associate Equity Analyst | Wells Fargo Securities, LLC Jacob.Goell@wellsfargo.com | 650-245-0208

incomplete response, underdiagnosis, and expanding mast-cell biology drive a step-

Jeff Stithchange in treated prevalence. NVS's remibrutinib challenges Xolair, while we see CLDX's

Associate Equity Analyst | Wells Fargo Securities, LLC