3 Biotech Stocks Wall Street Analysts Are Bullish on for 2026

The biotech sector has put up a strong recovery in 2025. The Nasdaq Biotechnology Index has risen 33.1% so far this year. The index bottomed out in April 2025 on potential imposition of steep tariffs, which weighed heavily on the broader pharma and biotech sector. Nonetheless, the recovery thereafter has been stupendous.

New drug approvals, positive pipeline and regulatory updates, and a surge in mergers and acquisitions (M&A) activity have propelled the rally. The FDA has approved more than 42 drugs year to date.

The year has also witnessed a surge in M&A activity, fueled by the changing landscape and the spotlight on AI-driven drug discovery. Quite a few of the large pharmaceutical and biotechnology bigwigs are looking to expand/diversify their product portfolios through strategic collaborations and acquisitions to adapt their business models amid rising generic competition for key drugs.

Meanwhile, the Trump administration recently signed agreements with major pharma/biotech bigwigs like Gilead Sciences, Amgen, Merck and Novartis, among others, to lower prescription drug prices for Americans. These agreements primarily aim to lower the cost of drugs for chronic conditions, including type 2 diabetes, rheumatoid arthritis, multiple sclerosis, asthma, chronic obstructive pulmonary disease, hepatitis B and C, HIV, and certain cancers, among others.

Concurrently, these companies will invest at least $150  billion on a colllective basis in domestic production in the near term.

Given the continuous need for innovative medical treatments (regardless of the state of the economy), the dynamic biotech industry will continue to capture investors’ interest going forward.

Here, we discuss three biotech stocks that put up a robust show in 2025 and are likely to maintain the same in 2026 on the back of a solid portfolio and a promising pipeline. These are EyePoint, Inc. EYPT, ANI Pharmaceuticals ANIP and Tango Therapeutics TNGX.

EyePoint

EYPT is focused on developing innovative therapeutics for serious retinal disease. Duravyu, EYPT’s lead pipeline candidate, is an investigational sustained delivery treatment for vascular endothelial growth factor (VEGF) mediated retinal diseases combining vorolanib, a selective and patent-protected tyrosine kinase inhibitor with bioerodible Durasert.

The candidate is being evaluated in late-stage studies (LUGANO and LUCIA) for wet age-related macular degeneration (wet AMD). Data readout from these studies will begin in mid-2026. Last month, the independent Data Safety Monitoring Committee recommended that both the LUGANO and LUCIA trials continue as planned, with no modifications to the protocol.

Additional phase III studies (COMO and CAPRI) in diabetic macular edema (DME) are expected to dose patients in the first quarter of 2026. Other candidates in EyePoint’s pipeline include EYPT-2301, a TIE-2 agonist, and razuprotafib, formulated using the Durasert E technology to potentially improve outcomes in serious retinal diseases.

EYPT has put up a stellar performance in 2025, with shares skyrocketing 140.5%. Positive data readouts and good pipeline progress should help the stock gain further. The current average target price of $34.18 for EYPT represents an upside of 100.35%. Of the total recommendations used to derive the current average brokerage rating, 84.62% are Strong Buy recommendations.

EYPT currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

ANI Pharmaceuticals

ANIP is a diversified biopharmaceutical company with two focal areas — rare diseases and generics. The company’s rare disease franchise became a key growth driver in 2025, fueled by the strong performance of its ACTH-based injection Cortrophin Gel.

Cortrophin Gel sales jumped 70% year over year to $236 million in the first nine months of 2025, witnessing broad-based growth across all targeted specialties, supported by an expanded sales force in neurology, rheumatology, and nephrology, as well as synergies from the integrated ophthalmology sales team.

This strong momentum in Cortrophin Gel should continue next year as well, supported by new clinical studies (including a phase IV study in acute gouty arthritis) and ongoing efforts to deepen specialty penetration.

The acquisition of Alimera Sciences, Inc., in 2024 added a growing and durable franchise, Iluvien for (diabetic macular edema) and Yutiq (for the treatment of non-infectious uveitis affecting the posterior segment of the eye) to its portfolio.

The company has a presence in the generics market as well.

ANIP’s shares have gained 52.9% in a year. The stock currently carries a Zacks Rank #2. The current average target price of $109.25 for ANIP represents an upside of 31.9%. Of the total recommendations deriving the current average brokerage recommendation, 88.9% have strong buy recommendations for the stock.

Tango Therapeutics

Tango Therapeutics, a clinical-stage biotechnology company, is focused on the next generation of precision medicine for the treatment of cancer. The company is leveraging the principle of synthetic lethality to develop treatments that directly aim specific tumors.

Pipeline candidates include two MTAP-deleted selective PRMT5 inhibitors — vopimetostat (TNG462) for non- central nervous system (CNS) cancers, including pancreatic and lung cancer, and TNG456, a next-generation, brain-penetrant PRMT5 inhibitor, for CNS cancers, including glioblastoma (GBM).

The pipeline progress has been encouraging. In October 2025, the company reported positive data from the ongoing phase I/II study of vopimetostat in patients with MTAP-deleted selective cancers, demonstrating clinical activity across multiple cancer types with a favorable safety and tolerability profile to date.

TNG456 is a potent, highly MTAP selective brain-penetrant PRMT5 inhibitor in development for glioblastoma, currently enrolling patients in a phase I/II study. In October, the FDA granted orphan drug designation (ODD) to TNG456 for the treatment of malignant glioma.

Another candidate in the pipeline is TNG260, a first-in-class, highly selective CoREST complex inhibitor. The candidate is currently being evaluated with Merck’s Keytruda (pembrolizumab) in a phase I/II study in STK11 mutant/KRAS wild type NSCLC.

Shares of this Zacks Rank #2 company have surged 163.8% in a year. The current average target price of $13.22 for TNGX represents an upside of 56.26%. Of the total recommendations deriving the current average brokerage recommendation, 83.33% are strong buy recommendations. 

 

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This article originally published on Zacks Investment Research (zacks.com).

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