Bank of America has highlighted four biotech firms as their top picks for 2026, citing a mix of commercial momentum and imminent clinical or regulatory catalysts that could unlock value. The firm retains Buy ratings across the group and has set distinct price objectives and sales forecasts that reflect each company's perceived upside.
Argenx
Argenx is among the highest-profile selections, with BofA issuing a Buy rating and a price objective of $1,006 (€863). The bank points to sustained commercial strength of Vyvgart in generalized myasthenia gravis (gMG) and chronic inflammatory demyelinating polyneuropathy (CIDP) as central to its thesis. Expected contributors to continued momentum include prefilled syringe approval, geographic expansion and the accumulation of real-world evidence. BofA models peak sales of $6.8 billion in gMG - equivalent to $493 per share - and $4.5 billion in CIDP - equivalent to $303 per share.
Beyond commercial execution, Argenx has several clinical readouts and early-stage updates slated for 2026. BofA highlights four Phase 3 readouts as multiple potential upside events. The company also disclosed that the U.S. Food and Drug Administration has accepted for priority review an application to expand Vyvgart's labeling to another form of generalized myasthenia gravis. Separately, Argenx announced a leadership transition plan that elevates current chief operating officer Karen Massey to the role of chief executive officer.
KalVista Pharmaceuticals
KalVista earns a spot on BofA's list with a Buy rating and a $30 price objective, driven primarily by Ekterly, the first approved oral on-demand treatment for hereditary angioedema (HAE). The therapy received approval in July 2025. BofA reflects optimism that the on-demand segment will shift toward oral therapy, noting that key opinion leaders expect a majority of on-demand usage to convert to oral formats. Under one modeled scenario, Ekterly could capture as much as 60% of HAE patients at peak, a figure contingent on payor coverage.
Analysts emphasize payor policy finalizations in early 2026 as a crucial focus, since reimbursement decisions are material for adoption. For fiscal 2026, BofA projects sales of $102.8 million for Ekterly, with peak sales modeled at $685 million. Recent company disclosures show preliminary fourth-quarter 2025 global sales for Ekterly of about $35 million, a result that substantially exceeded analyst expectations. Following the strong sales report, several firms including Stifel and Needham reiterated Buy ratings on KalVista.
Ocular Therapeutix
Ocular Therapeutix appears on BofA's small-cap list with a Buy rating and a $21 price objective. The bank sees the pivotal SOL-1 topline readout, expected in the first quarter of 2026, as a defining catalyst that could validate Axpaxli's differentiated long-acting profile in wet age-related macular degeneration (AMD). That outcome would have implications for a planned second pivotal study, SOL-R, which is expected in the first half of 2027. BofA models nominal peak sales of $2.4 billion for Axpaxli in wet AMD and anticipates a potential launch in 2027, which would position Axpaxli as a first-to-market long-acting injectable in its class if approved.
In corporate developments, Ocular Therapeutix reportedly received and rejected an acquisition proposal from Sanofi, with reports indicating the buyer may prepare a higher bid. The company has also named David W. Robinson as its Global Chief Commercial Officer to support launch readiness for Axpaxli.
Vertex Pharmaceuticals
Rounding out BofA's quartet is Vertex Pharmaceuticals, assigned a Buy rating and a $571 price objective. BofA continues to view Vertex as the leader in cystic fibrosis (CF) while noting the company's active efforts to diversify its pipeline. The bank highlights a Phase 3 readout for povetacicept (pove) in IgA nephropathy (IgAN) as Vertex's key 2026 catalyst and reports that the company plans to seek accelerated approval in the first half of 2026.
Analysts referenced by BofA consider pove to have best-in-class potential in IgAN and see opportunity for expansion into primary membranous nephropathy (pMN) and generalized myasthenia gravis (gMG). In its valuation, BofA attributes $511 per share of the price objective to Vertex's CF franchise, while noting additional upside tied to favorable IgAN outcomes and ongoing execution from the Journavx program. The company has also received several analyst rating upgrades - including from Morgan Stanley and RBC Capital - as sentiment toward its kidney franchise has risen ahead of key clinical data expected in 2026.
What ties the picks together
BofA's selections reflect a common theme: each company has either immediate commercial drivers or discrete clinical and regulatory milestones expected in 2026 that the bank views as capable of creating near-term stock value. That mix of launch execution and trial readouts frames the firm's optimistic stance across its four Buy-rated names.