RBC's top 10 questions and answers on biotech stocks

Investing.com -- In a recent note to clients, RBC Capital Markets has outlined the top 10 questions investors are posing about the biotechnology sector, providing insights into the key issues driving market sentiment.

1) Among the most prominent inquiries is how the new Trump-led administration could impact the FDA. Investors are particularly curious about the role RFK Jr. might play if he were to hold a position in federal healthcare agencies.

2) Vertex Pharmaceuticals (NASDAQ:VRTX ) also features heavily in discussions, particularly around its phase II trial for suzetrigine.

According to RBC, investors are focused on whether VRTX can demonstrate sufficient placebo-adjusted pain improvement in the trial to justify further development “and what would be the implications for the stock at these levels if the efficacy looks very modest?”

3) Meanwhile, Regeneron (NASDAQ:REGN ) is grappling with inquiries about strategies to accelerate EyleaHD adoption and fend off biosimilar competition.

Also, beyond the EyleaHD matter, investors are wondering “what are the most important upcoming catalysts that could help sentiment on the stock bounce back?” RBC notes.

4) Gilead (NASDAQ:GILD ) also faces scrutiny, especially concerning potential bear cases for its lenacapavir program in pre-exposure prophylaxis (PrEP) and other pipeline strategies.

Investors are weighing possible reimbursement issues, potential side effects, and how Gilead’s life-cycle extension strategy might influence stock momentum.

5) According to RBC, investors are scrutinizing Edgewise Therapeutics Inc (NASDAQ:EWTX ) for its forthcoming data in BMD and Duchenne muscular dystrophies, trying to evaluate the setup ahead of data releases.

6) In the meantime, Legend Biotech Corp (NASDAQ:LEGN )’s Carvykti remains under comparison with anito-cel in the late-line multiple myeloma space, with RBC’s clients keen on understanding physician preferences between the treatments.

7) On Amgen (NASDAQ:AMGN ), investors are adjusting their expectations for MariTide as the landscape around weight loss therapies evolves. Investor questions revolve around how shifts in trial planning and data release timing could affect AMGN’s competitive stance.

8) Exelixis (NASDAQ:EXEL ) has garnered attention with questions centering on its cash utilization and potential acquisition targets following the removal of the ANDA overhang on Zanza’s IP.

9) For Ideaya Biosciences Inc (NASDAQ:IDYA ), RBC points out that queries are focused on the competitive profile of IDE397 in monotherapy and its potential enhancement when combined with AMG 193. Investors are also eager to see “when can we expect clinical data for this combination program,” according to RBC.

10) Finally, Jazz Pharmaceuticals (NASDAQ:JAZZ ) faces speculation over the commercial opportunity of zanidatamab (Zani) in HER2+ cancers. RBC says that investor sentiment is cautious, with stakeholders questioning whether Zani could be transformative enough to “re-rate the stock.”

Source: Investing.com