The US biotechnology sector is poised for growth in 2026, with several companies having near-term catalysts and promising clinical trial readouts that could drive momentum, BofA Securities said in a note Tuesday.

The analysts said that the Nasdaq Biotechnology Index has bounced back to 2021 levels, outperforming the broader market. Key positives include strong data releases being rewarded, ongoing mergers and acquisitions by big pharma, better access to capital, and limited impact so far from drug pricing regulations. Innovation from China and shifts in global pharma spending add further upside potential.

The analysts said they have refreshed their top picks for 2026 to include Revolution Medicines (RVMD), Regenxbio (RGNX), Krystal Biotech (KRYS), and Immatics (IMTX). "We favor companies with near-term binary catalysts with derisking data to support a positive view," they said.

BofA updated its price objectives for the top picks, raising Immatics to $17 from $14, Krystal Biotech to $272 from $255, Regenxbio to $28 from $20, and Revolution Medicines to $98 from $82.

Price: 79.86, Change: +1.53, Percent Change: +1.95