Halozyme downgraded to Underperform from Market Perform at Leerink

Leerink downgraded Halozyme (HALO) to Underperform from Market Perform with a price target of $47, down from $63. The Centers for Medicare and Medicaid Services issued draft guidance for 2028 Inflation Reduction Act drug price controls which creates risk that hyaluronidase combination products may not be protected from IRA price negotiations for 13 years after combo approval, the analyst tells investors in a research note. The firm says the “surprise” is the CMS draft guidance language suggesting combination products which do not enhance efficacy may be negotiated 13 years after the original active ingredient was approved, rather than 13 years after combination approval. Halozyme could face U.S. revenue pressure from Opdivo subcutaneous in 2028, Darzalex Faspro in 2029 and Ocrevus subcutaneous in 2031, contends Leerink. In addition, the CMS action may reduce new business opportunities to license Enhanze, the firm adds.