US Biopharmaceuticals: Today’s tape: four undervalued opportunities

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US Biopharmaceuticals: Today’s tape: four undervalued opportunities

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US Biopharmaceuticals

Today’s tape: four undervalued

opportunities

Industry Overview

Finding opportunities in the SMid-cap rotation 11 June 2026

SMid-cap biotechs have had a tough year (NBI +1% vs. SPX +6%), with nearly 2/3rds of Equity

the NBI’s constituents underperforming the broader market. While some of this reflects United States

company-specific setbacks, there has also been rotation out of Health Care with reasons Biopharmaceuticals

to avoid more volatile subsectors like Biopharma (see note, Tales from the Biotape, vol Jason Zemansky

4). As is often the case, the drawdown has not been discriminating, and we’d argue Research Analyst

several stocks have sold off despite little change to the underlying story. Below, we BofAS+1 646 855 4280

highlight four names—Insmed (INSM), BridgeBio (BBIO), Rocket (RCKT), and Acumen jason.zemansky@bofa.com

(ABOS)—where valuations look disconnected from fundamentals, creating what we see Jacqueline Plesset

Research Analyst

as potentially attractive opportunities ahead of near-term clinical, regulatory, and/or BofAS

commercial updates that could drive a meaningful upswing, if not an outright re-rating. +1 646 855 0014

jacqueline.plesset@bofa.com

INSM: Valuation still looks meaningfully disconnected

We recognize the bear arguments that have left shares -47% YTD after a messy 1Q

raised concerns around the narrative (see our 1Q takes, Concerns overdone). Last year’s Abbreviations:

run may have elevated Brinsupri’s expectations, but ongoing debate over persistence, ADH1: autosomal dominant hypocalcemia type 1

patient growth, and prescriber dynamics seems overdone given a launch we think most IP: intellectual property