Investing.com -- As the biotech sector continues to evolve, Truist Securities has identified several companies poised for significant developments in 2026.
These companies represent promising investment opportunities based on upcoming catalysts, commercial potential, and clinical advancements.
1. Madrigal (MDGL) - Truist expects continued commercial execution in MASH F2/F3 in the US market and signs of material growth in the EU during the second half of 2026.
The firm believes Rezdiffra is a fast-acting effective therapy with multi-billion dollar sales potential, even accounting for future competition.
Truist recently increased its price target to $640 from $580, reflecting heightened conviction in the MASH F4 opportunity.
2. Cytokinetics (CYTK) - According to Truist, 2026 will be CYTK’s moment as investors focus on the aficamten launch and its ability to capture new patients.
Key opinion leader checks indicate strong preference for aficamten for new patients based on existing data.
Truist believes access and payer dynamics will likely determine the early launch trajectory of MYQORZO, which they view as having a differentiated label and profile.
3. Edgewise (EWTX) - Truist sees 2026 as significant for Edgewise, with high-profile Phase 2 HCM data expected mid-year that could address investor concerns about EDG-7500’s impact on atrial fibrillation.
Additionally, positive Phase 3 data for sevasemten in Becker muscular dystrophy is expected in Q4 2026, which would support an NDA filing and represents potential upside to many investor models.
Edgewise Therapeutics announced positive updates from the ongoing Phase 2 clinical trial of EDG-7500 for hypertrophic cardiomyopathy, reporting that the treatment was generally well-tolerated.
4. MBX Biosciences (MBX) - Truist highlights MBX’s de-risked programs in HP, PBH, and obesity with long-acting differentiation, all with near-term readouts offering significant potential upside.
Investor interest is primarily focused on the monthly GLP/GIP obesity readout expected in Q4 2026.
Truist initiated coverage with a Buy rating and $50 price target.
5. Terns (TERN) - Truist anticipates continued momentum from strong efficacy in CML, with full Phase 1 readout and FDA communication for pivotal trial plans expected mid-2026.
The firm models peak sales of $2.3 billion for TERN-701, noting that recent ASH data continues to exceed expectations.
6. Protagonist (PTGX) - Approval for icotrokinra (IL-23) in PsO is expected mid-2026, in partnership with JNJ.
Additionally, Truist expects investor interest in a likely Takeda opt-out with $400M+ payment expected mid-2026. The firm sees continued growth potential from indication expansion and pipeline progress with next-generation assets.
7. Scholar Rock (SRRK) - In 2026, Truist expects resolution of issues surrounding apitegromab’s manufacturing site and pipeline clarity regarding additional indications for future apitegromab/SRK439 development.
The firm believes apitegromab’s positive SAPPHIRE results partially de-risk development in other neurodegenerative diseases.
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