Top 3 Biotech Stocks to Watch According to BofA Global Research

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MBX Biosciences, Inc. Common Stock

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Investing.com -- BofA Global Research has identified three leading biotechnology companies poised for significant developments in...

Investing.com -- BofA Global Research has identified three leading biotechnology companies poised for significant developments in the coming months. These top picks showcase promising pipelines and near-term catalysts that could drive shareholder value.

Ascendis Pharma AS (NASDAQ:ASND) BofA analysts have designated Ascendis as one of their top biotech picks with a $230 price objective. The company is approaching a critical milestone with its TransCon CNP treatment for achondroplasia, which has a PDUFA action date of November 30th.

Analysts assign a 90% likelihood of success to this program and project peak risk-adjusted sales of $1.1 billion. Additionally, Ascendis plans to launch Skytrofa for adult growth hormone disease in the fourth quarter following its July approval. The ongoing performance of Yorvipath remains crucial to BofA’s investment thesis, with analysts closely monitoring launch metrics in upcoming earnings calls.

While competitor MBX Biosciences is expected to release Phase 2 data for its HPT candidate in the third quarter, analysts note Ascendis will likely maintain first-mover advantage for several years.

Kymera Therapeutics Inc (NASDAQ:KYMR) With a $54 price objective, Kymera is on track to report Phase 1b BroADen data for its STAT6 degrader (KT-621) in moderate-to-severe atopic dermatitis during the fourth quarter of 2025.

Management aims to demonstrate robust STAT6 degradation in blood and skin lesions, along with suppression of Th2 biomarkers.

The trial will also assess exploratory clinical endpoints including EASI-75 and pruritus NRS at days 7, 14, 21, and 28. Beyond KT-621, Kymera’s oral IRF5 degrader (KT-579) is currently in IND-enabling studies and is expected to enter Phase 1 trials in early 2026.

Merus NV (NASDAQ:MRUS) BofA has set a $92 price objective for Merus, another of their top picks. The company is expanding development of its lead asset, petosemtamab (an EGFR x LGR5 bispecific antibody), beyond head and neck squamous cell carcinoma.

Merus plans to provide an initial update on its Phase 2 study in metastatic colorectal cancer in the second half of 2025, likely at a medical meeting. Management expects to benchmark objective response rates against current EGFR-based therapies, which show approximately 65% response in first-line treatment, 30% in second-line, and 20-25% in third-line or later EGFR-rechallenge patients.

Additionally, Merus continues to advance its Phase 3 LiGeR-HN1 study in first-line HNSCC and LiGeR-HN2 study in second/third-line HNSCC, with enrollment expected to be substantially complete by year-end 2025 and data readouts anticipated in 2026.

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Biotech Sector Shows No Signs of Slowing. 3 Stocks That Make the Grade. — Barrons.com

Dow Jones Newswires

By Doug Busch

Biotech stocks are on a winning streak that might just continue through the rest of the year.

Last week, the SPDR S&P Biotech exchange-traded fund surged 6%, contrasting with a 0.8% decline in the broader healthcare space, as measured by the Health Care Select Sector SPDR fund (XLV). When the biotech sector shows signs of renewed strength, it often signals a broader risk-on sentiment among investors.

The biotech ETF, up 5% in 2025, is poised for its third consecutive annual percent gain in the single digits.

Could the sector be gearing up for a meaningful rally into year-end? We last discussed this possibility in July, and technical analysis of recent price action says yes. The monthly chart reveals a bullish breakout above a long-term bearish head and shoulders pattern. That breakout projects a push toward the very round $100 level near term, and a potential advance to $115 by the first quarter of 2026.

The SPDR S&P Biotech ETF traded at $94.22 Tuesday.

Within the sector, a few stocks stand out on a technical basis. Shares of Incyte, which specializes in oncology and autoimmune diseases, have shot up 25% this year, displaying excellent relative strength versus the XBI. The stock surged 25% during a four-week winning streak from late July to mid-August, forming a bull flag just 2% below its 52-week high.

A decisive breakout above $87 could fuel a measured move toward $104 by year-end. This recent run began after a double-bottom breakout above the $77.06 trigger on July 29, on its latest earnings reaction — reinforcing the case for adding to winners as momentum builds.

Incyte traded at $86.05 Tuesday.

Crispr Therapeutics, a Swiss biotech up more than 40% this year, has pulled back 25% from late July's 52-week highs, presenting an attractive entry point.

The stock recently traded near $55, a key resistance level that has capped rallies in November and December 2024, and this past February. Bullish reversal candles, with a piercing line and doji, were recorded on Sept. 2 and 4, signaling a potential uptrend forming. Round number theory remains relevant, with $70 marking July's peak and $30 the April bottom. This setup suggests a buying opportunity near current levels, and that investors increase holdings above a double bottom trigger of $61.54, with $50 being used as a stop.

Crispr Therapeutics traded at $53.83 Tuesday.

Shares of Merus, a Dutch biotech focusing on cancer treatments, are outperforming with a robust 58% gain this year. The stock trades just 4% below its recent 52-week highs, while the XBI lags 11% off its peak.

The daily chart shows technically constructive patterns, starting with a powerful double bottom on May 23 that propelled a breakout surge of over 32%. A subsequent cup base breakout in mid-July set the stage for another bull flag pattern. That gave investors another chance to build up their positions as the stock rallied another 20% rally during the weeks ended July 18-25. Investors should consider entering on a breakout above the $68 pivot, targeting a potential move toward $83 by year-end.

Merus traded at $67.25 Tuesday.

Write to Doug Busch at douglas.busch@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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Top Biotech Stocks to Watch: BofA’s 2025 Picks

Investing.com

Investing.com -- The biotech sector continues to offer compelling investment opportunities as innovative therapies advance through clinical development and into commercialization.

Bank of America recently highlighted its top biotech picks for 2025, focusing on companies with strong commercial momentum and significant upcoming catalysts. These selections represent firms with established products showing market traction and promising pipelines that could drive future growth.

Argenx (ARGX)

BofA maintains Argenx as a top pick with an $887 price objective, citing the continued strong performance of Vyvgart more than 3.5 years into its initial launch for generalized myasthenia gravis (gMG). The drug has also gained significant traction in chronic inflammatory demyelinating polyneuropathy (CIDP).

Analysts expect momentum to remain robust through 2025 and 2026, driven by the approval of the prefilled syringe format, expanding biologics use in gMG, and further CIDP uptake. Multiple Phase 3 readouts for Vyvgart and additional pipeline catalysts in the next 12-18 months provide multiple growth opportunities. BofA models peak sales of $6.5 billion in gMG and $4.5 billion in CIDP.

In recent developments, Argenx announced that its Vyvgart treatment met the primary endpoint in a Phase 3 study for seronegative generalized myasthenia gravis patients. Following the positive trial results, Piper Sandler raised its price target on the company’s stock.

Ascendis Pharma (ASND)

With a $230 price objective, Ascendis makes BofA’s list thanks to the strong initial global launch of Yorvipath for hypoparathyroidism (HPT). Analysts expect further acceleration as payor coverage expands. As the only marketed product for HPT, Yorvipath is well-positioned to capture market share, with competing pipeline products several years behind.

BofA models $3.15 billion in peak HPT sales. Additional upside potential exists through Skytrofa label expansion and a potential third commercial asset with the November 30 PDUFA date for TransCon CNP in achondroplasia.

Ascendis Pharma reported second-quarter 2025 financial results that surpassed analyst expectations, with beats on both revenue and earnings per share.

Merus (MRUS)

BofA highlights Merus with a $92 price objective, focusing on its lead asset petosemtamab, which has shown compelling efficacy and safety in head and neck squamous cell carcinoma (HNSCC). The second half of 2025 will feature initial data from the Phase 2 study in metastatic colorectal cancer, potentially expanding petosemtamab beyond HNSCC.

Two pivotal Phase 3 readouts in HNSCC are expected in 2026. BofA models risk-adjusted peak sales of $2.5 billion for first-line HNSCC and $947 million for second-line treatment.

PTC Therapeutics (PTCT)

With a $76 price objective, PTC Therapeutics rounds out BofA’s top picks following the late-July approval of Sephience for phenylketonuria (PKU) with a broad label. Commercial shipments began in mid-August, with early key opinion leader checks indicating strong demand due to Sephience’s differentiated clinical profile.

Analysts are closely monitoring early payor coverage dynamics as a key determinant of launch trajectory. BofA views this as a blockbuster opportunity with projected peak sales of $1.3 billion.

Additional upside potential exists with PTC518 for Huntington’s disease, for which the company is targeting accelerated approval.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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