Jefferies Highlights Top Mid-Cap Biotech Stocks Ahead of Earnings

Investing.com -- Jefferies analysts identified their preferred mid-cap biotechnology stocks ahead of third-quarter earnings, with Oncorus (ONC) emerging as their top commercial pick, followed by Revolution Medicines (RVMD) and Alnylam Pharmaceuticals (ALNY). The firm made several price target adjustments across its coverage universe while maintaining buy ratings on select names.

The analysts noted they are closely monitoring earnings results for specific catalysts, including first revenue reports, potential earnings beats, and pipeline updates across their mid-cap biotech coverage.

1. Oncorus (ONC)

Jefferies rates the stock Buy with a $410 price target, up from $405. The firm models third-quarter Brukinsa revenue at approximately $1.36 billion worldwide and $982 million in the United States, compared to consensus estimates of $1.30 billion and $929 million, respectively. Both IQVIA and Symphony data point to performance above consensus. Jefferies expects updates on the BTK CDAC accelerated approval pathway and GPC3 commercialization strategy. Management is currently in FDA discussions regarding the accelerated approval path for double-versus triple-exposed patients, with clarity expected by the third-quarter call. The firm noted management does not view Eli Lilly's Jaypirca first-line CLL approval as a competitive threat.

2. Revolution Medicines (RVMD)

Jefferies models third-quarter Rasonque revenue at approximately $31.5 million versus consensus of $29.2 million. Symphony data shows 591 September total prescriptions and 645 cumulative prescriptions through October 2. The 150mg dosage represents approximately 78% of total prescriptions, which the firm views as an encouraging early indicator of real-world tolerability. Jefferies noted that investor expectations vary widely, with $50 million being the most frequently cited figure. The firm emphasized that focus should shift to fourth-quarter execution and fourth-quarter 2026 G12D CRC combination data, where investors are looking for 40-60% overall response rate with supportive durability.

3. Alnylam Pharmaceuticals (ALNY)

Jefferies maintains a Hold rating but lowered its price target to $250 from $260. The firm models third-quarter Amvuttra revenue at approximately $1.17 billion worldwide and $950 million in the United States, compared to consensus of $1.12 billion and $883 million. Jefferies believes the 14th selling week nuance is not fully reflected in consensus estimates. The 340B program represents a key concern, with exposure likely exceeding 40%, though the impact will not be clear until 2027 quarters.

Original Article

You May Also Be Interested In

• H.C. Wainwright Reiterates Buy Rating on Humacyte (HUMA)
• Regions Financial beats earnings despite revenue miss
• Goldman Sachs downgrades GVS as rally leaves limited upside to earnings targets