Needham & Company highlighted five biotech equities as preferred holdings for the latter half of 2026, keeping Buy recommendations across the board and flagging a set of upcoming clinical data points and corporate developments as the primary catalysts. The picks span a range of therapeutic areas, from rare developmental and epileptic encephalopathies to neuropsychiatric and sleep-disorder indications.
Praxia Therapeutics (PRAX) - Price Target $582
Needham expects the stock to recover momentum in H2 2026 driven by an imminent Phase 3 EMERALD study data readout for relutrigine in a broader developmental and epileptic encephalopathy (DEE) population. The firm notes that the name experienced limited momentum in the first half of 2026 after the POWER1 study failure and a delayed PDUFA date tied to relutrigine for SCN2A/SCN8A DEE.
Needham emphasizes the scarcity of therapeutic alternatives in this patient group, pointing out that bexicarserin from Lundbeck is another Phase 3 program with data anticipated in fourth quarter 2026 or first quarter 2027. The EMERALD study enrolled a severe population - baseline seizure burden exceeds 50 countable seizures per 28 days - and Needham states that a positive readout would lead to a supplemental new drug application filing in 2027.
The article also records that Praxis Precision Medicines reported a narrower-than-expected loss for the second quarter of 2026, beating analyst EPS estimates. Following those results, Raymond James raised its price target on the company, citing an increased probability of success for the EMERALD trial.
Acadia Pharmaceuticals (ACAD) - Price Target $41
Needham views Acadia as offering an appealing risk-reward profile ahead of a Phase 2 RADIANT readout for remlifanserin in Alzheimer’s disease psychosis, expected in September or October. The firm assigns a 70% probability that the trial will be positive with at least one of the two doses meeting the primary endpoint and notes the study is 80% powered to detect an effect size of 0.4 on SAPS-H+D.
Needham also points to stabilization in Acadia’s base business, with management raising 2026 guidance by 2% at the midpoint, primarily on an improved outlook for Daybue. The article notes that Acadia recently obtained European Commission approval for DAYBU in Rett syndrome for patients aged five years and older, and that UBS raised its price target, citing increased optimism for the remlifanserin program.
Biogen (BIIB) - Price Target $256
Needham highlights Biogen’s pipeline cadence, forecasting eight Phase 3 readouts through 2029 and an improving commercial portfolio. The firm projects that five growth products, together with two assets from the Apellis deal, could offset mid-single-digit declines in Biogen’s base business and help produce a five-year revenue compound annual growth rate in the low-single digits.
Needham quantifies the pipeline upside potential, stating that the programs could generate more than $7 billion in combined peak sales if results are positive. Upcoming program milestones include Litifilimab’s Phase 3 in systemic lupus erythematosus (SLE) in fourth quarter 2026 and a cutaneous lupus erythematosus (CLE) update in mid-2027. The firm also records that several analysts - including Piper Sandler, RBC Capital, and H.C. Wainwright - raised price targets on Biogen, driven by the company’s pipeline outlook, and that Biogen selected Veeva Systems for its global CRM requirements.
Axsome Therapeutics (AXSM) - Price Target $268
Axsome’s shares are up 21% year-to-date, Needham notes, supported by continued growth of Auvelity in major depressive disorder and encouraging early launch metrics for the agitation associated with Alzheimer’s disease indication that launched in June. The firm highlights the upcoming Phase 3 ENGAGE study data readout for solriamfetol in binge eating disorder as a further catalyst.
Axsome reported second-quarter 2026 revenue that exceeded analyst forecasts, which Needham attributes to strong Auvelity sales. In reaction to the quarter, several investment firms, including Guggenheim and Mizuho, raised their price targets on the company.
Alkermes (ALKS) - Price Target $62
Needham expresses optimism for Alkermes’ orexin franchise, starting with ALKS-7290’s Phase 1b data expected by the end of third quarter 2026 and followed by alixorexton’s VIBRANCE-3 study data in idiopathic hypersomnia by year-end 2026 or early 2027. The stock has gained 68% year-to-date, according to the firm.
Alkermes’ second-quarter results beat analyst expectations on both revenue and earnings, with proprietary product sales rising 34% year-over-year. The company also amended its credit agreement to reduce interest rates on its term loans, which Needham includes in its assessment of the near-term financial backdrop.
Across these five names, Needham emphasizes a mix of imminent clinical readouts and tangible commercial performance as the drivers of its Buy-rated stance. Each company carries specific upcoming milestones - from Phase 1b through Phase 3 - that the firm views as potential inflection points for valuations, while recent quarterly results and regulatory actions are cited as supportive context for each investment case.