Jefferies has identified three small- and mid-cap biotechnology companies as its leading SMID picks, focusing on firms that the investment bank believes have near-term clinical or commercial catalysts and multi-year upside potential.
Insmed
Jefferies places Insmed among its top selections, pointing to the Brinsupri launch as a primary growth driver. The firm characterizes Brinsupri as a transformative therapy expected to reach more than $8 billion in peak annual sales. Jefferies also argues that the company’s TPIP program is not yet fully appreciated by the market and could add to revenue momentum out into the 2030s.
In its outlook the firm expects Brinsupri-related quarters to exceed consensus during 2026, projecting the product to end the year generating in excess of $400 million per quarter. Jefferies further anticipates investor recognition of TPIP’s value will increase over time.
Insmed also reported positive top-line results from its Phase 3 ENCORE study evaluating Arikayce as a first-line treatment for a form of lung disease. After that announcement, a number of brokerages including Mizuho, Stifel and BofA Securities raised their price targets on Insmed.
Revolution Medicines
Revolution Medicines is another Jefferies pick, with the firm highlighting the company’s RAS(ON) platform and the pivotal RASolute 302 trial. Jefferies anticipates that RASolute 302 will reach its endpoint at the first interim analysis and believes a positive readout could alter the pancreatic cancer treatment landscape.
The firm describes the RAS(ON) platform as potentially revolutionary and expects that RASolute 302 will show an overall survival benefit at its first interim look. Jefferies also sees upside for the company’s program in non-small cell lung cancer that could further shape investor sentiment.
In its fourth-quarter 2025 reporting, Revolution Medicines disclosed a net loss that missed estimates, with the shortfall attributed to higher-than-expected research and development spending. Separately, UBS initiated coverage on the company with a Buy rating, citing the promise of its RAS inhibitor portfolio.
Cogent Biosciences
Completing Jefferies’ trio of top SMID biotech picks, Cogent Biosciences is highlighted for the potential of its bezuclastinib program, marketed as Bezu. Jefferies expects the Bezu launch to outperform initial expectations and views the broader pipeline as providing a significant strategic upside, describing the pipeline as a free call option.
Jefferies characterizes Bezu as a best-in-class KIT inhibitor with a de-risked path to greater than $3 billion in peak sales. The firm anticipates that regulatory approval could arrive early in the third quarter, with liver monitoring requirements that are not onerous, and that sales in the fourth quarter could get off to a solid start.
The U.S. Food and Drug Administration accepted Cogent’s new drug application for bezuclastinib and granted Breakthrough Therapy Designation for the drug in combination with another agent for certain patients with Gastrointestinal Stromal Tumors. Following that regulatory progress, Raymond James reiterated a Strong Buy rating on the company.
Market reaction and analyst activity
Jefferies’ selections emphasize imminent commercial and clinical catalysts that the bank expects will drive investor reassessment of these names. A number of other brokerages have moved their views or coverage in response to recent results and regulatory steps: price-target increases followed Insmed’s ENCORE announcement, UBS began coverage of Revolution Medicines with a Buy stance, and Raymond James reiterated a Strong Buy on Cogent after FDA action on bezuclastinib.
These developments underscore Jefferies’ focus on companies where product launches, pivotal trial readouts and regulatory milestones could materially change revenue trajectories and investor sentiment.