Truist Securities forecasts the year 2026 as a turning point of several biotechnology organizations where, by this time, a number of therapeutic programs, perhaps, will have crossed commercial and clinical boundaries.
Overall, those represent asymmetric upside potentials, which can be explained by differentiated intellectual property, improved regulatory transparency, and expanded business opportunities.
Madrigal (MDGL)
It turns out to be a leading case study of MASH (Metabolic Dysfunction-Associated Steatohepatitis) domain. Truist expects continued traction across the United States in patients with F2/F3 liver fibrosis and an even faster adoption in Europe in the second half of 2026.
The fast-acting and their strong efficacy profile support Rezdiffra to hold a future projection of billions of sales, even in a competitive post-clinical environment. Increased confidence in the F4 (compensated cirrhosis) opportunity justifies a new price target of $640 by Truist.
Cytokinetics (CYTK)
The re-evaluation of cytokinetics (CYTK) can undergo significantly in 2026 alongside the commercialization of aficamten.
The feedback obtained by clinicians shows a considerable tendency toward aficamten among patients that have recently received the target diagnosis.
Taking into consideration the unique label of indications, and pharmacodynamic profile, Truist concludes that CYTK is in an ideal position to become a category leader in the event access conditions become conducive.
Edgewise Therapeutics EWTX
The available data on interim Phase 2 of hypertrophic cardiomyopathy (HCM) projected to mid-2026 could mitigate long-standing safety concerns in relation to atrial fibrillation with EDG 7500. Truist also argues that the market prices underestimate the above dual-catalyst structure.
MBX Biosciences
MBX Biosciences (MBX) has experienced de-risking in its pipeline, due to long-acting agents with differing activity in numerous metabolic indications.
MBX 4291, a glucagon-like peptide-1 (GLP-1)/glucose-dependent insulinotropic peptide (GIP) co-agonist prodrug with once-monthly dosing potential, is still in Phase 1 testing, with 12-week multiple ascending dose data expected in Q4 of 2026.
MBX plans to expand its obesity portfolio in 2026 with two new candidates designed to meet the full range of needs for obese patients, each with once-monthly dosing. These include an amycretin prodrug and a GLP-1/GIP/glucagon receptor (GCGR) prodrug candidate, with nominations scheduled for Q2 and Q3 2026.
Terns Pharmaceuticals
Terns Pharmaceuticals (TERN) has an impressive history of chronic myeloid leukemia (CML), whose efficacy statistics are beyond expectations.
Last year was transformative for Terns as we completed our transition to an oncology company anchored by our allosteric BCR-ABL inhibitor, TERN-701, for CML. Following compelling TERN-701 data at ASH in December, and our subsequent capital raise, we are in a strong position to advance TERN-701 towards pivotal trial initiation.
Said Amy Burroughs, chief executive officer of Terns.
Based on accelerating momentum in our CARDINAL trial, our goal for pivotal trials is to enroll patients more quickly than historical precedents in CML and to generate data that further strengthen the position of TERN-701 as a potential best-in-disease therapy across all lines of CML treatment
Added Ms. Burroughs.
We believe that reaffirming clinical differentiation and advancing to product launch rapidly will be key factors to maximize the therapeutic and commercial potential of TERN-701
Protagonist Therapeutics
Protagonist Therapeutics remains a strong buy, with late-stage assets icotrokinra and rusfertide approaching regulatory milestones in 2026. PTGX's strong cash position of $678.8 million provides a runway until 2028, allowing for aggressive R&D and upcoming commercialization efforts.
Both icotrokinra and rusfertide have shown strong efficacy and safety in pivotal trials, with regulatory submissions currently underway and significant market opportunities ahead.
Scholar Rock
Scholar Rock, a global biopharmaceutical company dedicated to dramatically improving the lives of children and adults with spinal muscular atrophy (SMA) and other rare, severe, and debilitating neuromuscular diseases by leveraging its leading platform in myostatin biology to advance musculoskeletal health, today provided a corporate update and highlighted its strategic priorities for 2026.
Said David L. Hallal, Scholar Rock's Chairman and CEO.
"We believe that the year 2026 will be transformative for Scholar Rock. We are executing with urgency and have strong momentum across our rare, severe neuromuscular disease programs as we lay the groundwork to become the next global biotech powerhouse,"
Bold Outlook
Analytically, the strength of Truist investment thesis depends on execution to a large extent. Current developments in Madrigal and Cytokinetics can substantially expand the revenue opportunities through the focussing of payer alignment, and positive results of the later phase of EWTX and MBX will present significant upside taking place as far as clinical evidence is able to meet the expectations set.
However, regulatory uncertainty and competitive forces are still the forces of substantive risks. Nonetheless, with continued increase of the wider biotechnology indices, such entities have an attractive alpha generating profile to risk-takers, thus acting to their advantage when the year 2026 unfolds.
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