The biopharmaceutical sector is entering 2026 with improved visibility as companies like Amphastar (AMPH), Catalyst (CPRX), and Supernus (SUPN) face key execution and growth catalysts, BofA Securities said in a note Wednesday.

The key catalyst for Amphastar in 2026 is the potential approval and launch of AMP-007 around mid-year, which management expects to help return the company to growth after a flat performance in 2025, the analysts said, adding that "while we view the stock as undervalued on comps and historical valuation, we remain cautious on pipeline execution risk to achieve return to growth."

For Catalyst, 2026 key drivers include greater clarity on intellectual property protection for Firdapse following a patent trial expected in March, potential expansion of the Agamree label beyond Duchenne muscular dystrophy in early 2026, and continued business development activity, the analysts said.

The analysts added that 2026 is also expected to be an important execution year for Supernus as it integrates Sage Therapeutics and expands its central nervous system portfolio.

"We expect small-mid cap biopharma to remain a primary beneficiary of the ongoing consolidation trend, as large-cap demand for late-stage and commercial assets remains high to fill pipeline gaps and offset impeding patent cliffs," the analysts said.

BofA reiterated a neutral rating on Amphastar and lowered its price objective to $30 from $31.

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