Refreshing Top Picks in Our Coverage Universe for 2H26: SYRE, XENE

Research evidence excerpt

Refreshing Top Picks in Our Coverage Universe for 2H26: SYRE, XENE

Deutsche Bank

Research

North America Industry Date

Pharmaceuticals BioPharma 30 June 2026

Refreshing Top Picks in Our Coverage

David Hoang, M.D., Ph.D. Universe for 2H26: SYRE, XENE

Research Analyst

+1-212-250-1184

Key Takeaways

Entering 2H26, we identify SYRE and XENE as the most compelling long ideas in Sam Beck

our smid-cap-focused biotech coverage universe, which considers 12-month Research Associate

+1-929-354-4311 ETR, overall risk-reward setup, catalyst path, and M&A optionality. At the start of

1H26, we identified APGE (Hold, PT $135) and AXSM (Buy, PT $280) as our best Rosemary Li

ideas (here); given the fast-moving nature of biotech, we believe these stock calls Research Associate

have largely played out. Recall APGE was acquired by ABBV for $10.9B (60% +1-347-985-6026

premium) on June 22, with shares up +76% YTD vs. XBI +31%. Recall AXSM

Samuel Ravina received FDA approval and label expansion for Auvelity in Alzheimer’s disease Research Associate

agitation (ADA) on April 30, with shares up +36% YTD and slightly ahead of XBI +1-917-244-0223

+31%. In the near-to-mid-term, we believe the biotech/therapeutics sector

continues to work, despite XBI pushing close to all-time highs and potential

concerns on rate hikes downstream, which could negatively impact valuations.

However, we see the recent string of large pharma M&A activity (needed to

address looming patent cliffs) and healthy capital markets for IPOs and secondary

offerings as reasons for continued strength. Any rotation from tech to healthcare,

seeking defensive growth, could also benefit the space. Against this bullish

backdrop, we have selected names for 2H26 which we believe can still