HALO: CMS IRA Proposal Should Have Limited Impact on HALO

Research evidence excerpt

HALO: CMS IRA Proposal Should Have Limited Impact on HALO

Equity Research

Company Update — June 15, 2026

Biotechnology

Halozyme Therapeutics, Inc.

CMS IRA Proposal Should Have Limited Impact on HALO Equal Weight

Price Target: $75.00

Our Call Ticker HALO

Upside/(Downside) to Target 7.9%

We see limited impact to HALO from CMS’s modified IRA proposal, given majority of

royalties are protected by orphan status, biosimilar dynamics, and low Medicare exposure. Price (06/12/2026) $69.50

We cont. to view long-term thesis tied to next-gen platforms like Hypercon. 52 Week Range $51.06 - 82.22

Market Cap (MM) $8,540

What's new? On Friday, CMS proposed a modified rule for IRA negotiation, providing a Enterprise Value (MM) $9,577

more narrow language on fix-dose combinations (FDCs). Under this proposal, for FDCs Average Daily Value (MM) $112

containing more than one active ingredient leading to alternate route of administration, Dividend Yield 0.0%

all of their related formulations will be aggregated for IRA negotiation consideration. This

means that hyaluronidase containing subQ products may not be treated separately from $ (Dec) Q1 Q2 Q3 Q4 FY

their IV versions for IRA negotiations. EPS

2026E 1.60 A 1.90 E 2.11 E 2.61 E 8.21 E

What does this mean for HALO? The proposal could bring certain ENHANZE products 2027E 2.22 E 2.56 E 2.53 E 2.65 E 9.97 E

into the same IRA selection analysis as their IV counterparts, given hyaluronidase is

Source: Company Data, Wells Fargo Securities estimates, and Factset.

considered as an active ingredient co-formulated with the therapeutic antibody. However, NA = Not Available, NC = No Change, NE = No Estimate

product-level exposure will depend on orphan drug status and biosimilar availability with

medicare exposure.