Small to Mid-Cap Biotechnology Firms Likely to Continue to Face Macro Headwinds, BofA Securities Says

MT Newswires Live
Yesterday

Small to mid-cap biotechnology companies are likely to see macro headwinds extend through the year, with tariff concerns and turnover at the US Food and Drug Administration further fueling near-term uncertainty, BofA Securities said in a Thursday note.

BofA Securities said an example of the FDA turnover's impact is the pause on the review of Novavax's (NVAX) Nuvaxovid COVID-19 vaccine, but the magnitude of recent layovers at the FDA "could take time to materialize."

The investment firm also said that "headline risk" continues to be a headwind but could decrease since pharmaceuticals are being exempted from US President Donald Trump's reciprocal tariffs, which should provide "near-term reprieve for the sector." The analysts said many of the small to mid-cap biotechnology firms have "little exposure" to tariffs as about 80% of them are "pre-commercial."

BofA Securities said Agios Pharmaceuticals (AGIO), Janux Therapeutics (JANX), CRISPR Therapeutics (CRSP), and Revolution Medicines (RVMD) are its top small to mid-cap biotech picks for 2025.

Price: 5.52, Change: -0.47, Percent Change: -7.78

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Most Discussed

  1. 1
     
     
     
     
  2. 2
     
     
     
     
  3. 3
     
     
     
     
  4. 4
     
     
     
     
  5. 5
     
     
     
     
  6. 6
     
     
     
     
  7. 7
     
     
     
     
  8. 8
     
     
     
     
  9. 9
     
     
     
     
  10. 10