重播：我们华盛顿政策讨论的要点

USA | Biotechnology *REPLAY* Takeaways from our DC Policydiscussion We discussed how DC policy is affecting healthcare companies and investorsand near-term catalysts to watch for with Washington Strategy analyst AniketShah, Pharma & Biotech analyst Akash Tewari, and Managed Care & HealthcareServices analyst David Windley. *Replay here.* Big Picture:Biopharma has underperformed in H1 due to ongoing policy uncertainty on tariffs, MFN,Medicaid cuts, and FDA cuts with IPO + follow-ons down 70-80% yoy. We anticipate the marketstabilizing and stocks moving higher in H2 as we get more clarity on the MFN/tariff front, the FDAcontinues to approve drugs on time, and M&A activity picks up. On MFN, we think legislation over the near term is unlikely (nothing in the Big BeautifulBill currently),although we're tracking some preliminary legislation that's been introduced. Theadministration will likely barter w/ drug cos for "political wins" (some speculation that tariffs couldbe used as leverage here) to get commitments from drug companies to pursue MFN pricing + makesure the US isn't being "ripped off." In terms of firm action: In Trump's prior term, he issued anMFNEO focused on Medicare Part B Top 50 drugs which was eventually struck down by a judge becauseit was rushed procedure-wise, so this could still be on the table, or we could see Trump exploringother options like a CMMI pilot program. We note: June 11 marks 30 days from the issuance ofTrump's EO which gives the HHS Secretary 30 days to set drug target prices and communicatethem to industry stakeholders, so we could see some sort of announcement this week. Michael J. Yee * | Equity Analyst(415) 229-1535 | michael.yee@jefferies.com Dina Elmonshed * | Equity Associate+1 (212) 778-8388 | delmonshed@jefferies.com We're also watching potential Medicaid cuts as part of the Big Beautiful Billwhich could affectlarge-cap names like GILD + VRTX which have 20-25% Medicaid-exposed revenues—recall, theHouse previously passed their version of the budget bill which calls for ~$715B in Medicaid cuts...Next catalyst will be the Senate passing its version of the budget bill (before July 4), and then thetwo chambers must reconcile their bills into one final budget bill which the President must passby the end of the fiscal year on September 30th or risk having to start the budget reconciliationprocess all over again. Kyle Yang, CFA * | Equity Associate(212) 284-2260 | kyle.yang@jefferies.com Matthew Hagood * | Equity Associate+1 (212) 778-8293 | mhagood@jefferies.com Madeleine Lee * | Equity Associate+1 (212) 778-8733 | mlee6@jefferies.com Tariff fears have largely quieted,given (+) comments from the president + RFK Jr. about pharmainvestments in US manufacturing (despite the fact many of these commitments were pre-planned),although we're keeping an eye on the 232 investigation on pharma-specific tariffs especially as abargaining tool for the administration going into MFN negotiations. On the SMID-cap side: We see pot'l for M&A to pick up in H2 as the markets settle and valuations clarifyin the next 3-5months as the FDA continues to approve drugs on schedule which has been a key concern, andindeed we're already seeing more M&A activity. We could also see MFN as some political cover ora bargaining chip to get international pricing parity for companies preparing to launch drugs OUS. Rise of China-based biotech is a double-edged sword—Pharma/large-cap cos have benefited fromin-licensing Chinese assets at attractive valuations, but this makes for a tougher M&A environmentfor US small-caps as pharma increasingly turns to overseas BD opportunities instead of shoppinglocal. This is also a focus of the Trump administration and FDA per Marty Makary's recentcomments about increasing scrutiny on China-based clinical trial data. The FDA has been vocalabout wanting to decrease drug regulatory timelines by using less animal testing, AI-directed review,etc. to get more drugs into clinic and approved faster to innovate and compete with China; thiswould almost certainly be positive for US biotech. Company Valuation/Risks For Important Disclosure information on companies recommended in this report, please visit our website at https://javatar.bluematrix.com/sellside/Disclosures.action or call 212.284.2300. Analyst Certification: I, Michael J. Yee, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or views expressedin this research report. I, Dina Elmonshed, certify that all of the views expressed in this research report accurately reflect my personal views about the subject security(ies) and subjectcompany(ies). I also certify that no part of my compensation was, is, or will be, directly or indirectly, related to the specific recommendations or vi