2 Mid-Cap Biopharma Stocks BofA Securities Recommends For 2022

Biotech stocks are risky investments and to make a profit informed decision-making is needed.

BofA Securities announced its top mid-cap biopharma picks in a note released Tuesday.

The Biopharma Analyst: Tanzeen Ahmad maintained a Buy rating and $211 price target on the shares of Alnylam Pharmaceuticals, Inc. ALNY.

The analyst also maintained a Buy rating and $323 price target for argenx SE - ADR ARGX.

The Biopharma Theses:

Alnylam Has Several Shots On Goal: Alnylam has the best "RNA interference" platform in biotech, analyst Ahamad said in a note. The company has already demonstrated the ability to commercialize RNAi-based therapies with current commercial products, the analyst said.

The company, the analyst noted, will have a year rich in catalysts in 2022. Specifically, among the company's candidates for the rare disease transthyretin amyloidosis, vutrisiran is currently under review for polyneuropathy of hereditary ATTR and has a PDUFA note of April 14, 2022, the analyst added.

The phase 3 APOLLO-B data for patisiran in the bigger indication of transthyretin cardiac amyloidosis due in mid-2022 could be Alnylam's most important catalyst, the analyst said.

"We expect ATTR will become a crowded market with data from a potential competitor due this month but view ALNY's approach as compelling on efficacy, safety and dosing profile thus far," BofA wrote in the note.

Phase 2 KARDIA1 data for zilebesiran examining the company's first non-rare disease indication in hypertension is due in late-2022, the firm said. Additional updates for other molecules in 2022 include chronic hepatitis B, NASH, Alzheimer's and gout, the firm added.

"Overall, we believe ALNY's platform has several shots on goal," BofA said.

Related Link: Novavax Shares Jump After Head Of EU Drug Regulator Hints At Imminent Authorization For COVID-19 Vaccine

Argenx Has Best-in-Class Asset: Argenx is focused primarily on autoimmune disorders using its product candidate efgartigimod, Ahmad said in the note. The company will likely transition from clinical-stage to commercial-stage with its first potential approval to treat myasthenia gravis, the analyst added.

The investigational asset has a PDUFA target action date of Dec 17 for the indication, the analyst noted.

Of the additional five indications in the clinic, chronic inflammatory demyelinating polyneuropathy could potentially be the next large indication, the analyst said. The analyst expects an update on the ongoing registrational trial in 2022.

"We view the company as having the best anti-FcRN asset based on overall efficacy and more importantly safety (competition has largely fallen away on safety)," BofA said.

The Biopharma Price Action: At last check Tuesday afternoon, Alnylam shares were edging down 0.37% at $185.73 and argenx was slipping 0.48% to $301.54.

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