From Financial Modeling Prep: 2025-05-13 11:42:00

Leerink Partners downgraded Halozyme Therapeutics (NASDAQ:HALO) to Underperform, citing regulatory risk and valuation concerns. The price target was reduced to $47 from $63. CMS draft guidance on the IRA introduces uncertainty on pricing negotiations for hyaluronidase-based drug combinations, causing shares to drop over 24%.

CMS proposes price control eligibility to start 13 years after the original active ingredient’s approval, potentially increasing pricing pressure on Halozyme therapies. Revenue projections remain unchanged, but Leerink adjusted valuation metrics, reflecting decreased confidence in the company’s pricing power under new regulations.

Leerink increased the discount rate to 12% and lowered the terminal growth assumption to -25%. Further revenue model adjustments will be made after final CMS guidance is issued in the second half of 2025.



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