Barclays analyst Peter Lawson initiated coverage of 13 companies in the U.S. small and mid cap Biotechnology sector with a Positive view. His coverage includes nine Overweights, two Equal Weights, and two Underweights. Small and mid cap biotech stocks should outperform on positive pivotal data, commercialization of novel therapies, and early clinical data from potential disruptive therapies, Lawson tells investors in a research note. He believes the four stocks with the most potential upside, based on probability-adjusted outcomes of upcoming catalysts, are Exelixis (EXEL), Arcus Biosciences (RCUS), Nektar Therapeutics (NKTR) and Epizyme (EPZM). Lawson also recommends investors focus on differentiated therapies from Iovance (IOVA) and Fate Therapeutics (FATE). He also believes Deciphera's (DCPH) first commercial product positions the company well in gastrointestinal stromal tumors. Lawson is awaiting further data to be more constructive on Equal Weight-rated CytomX Therapeutics (CTMX) and Underweight-rated MacroGenics (MGNX) and Xencor (XNCR).

Biolojic Design announced that Nektar exercised its license option to develop a program resulting from the companies' research collaboration initiated in 2021. The research collaboration was established to design and test agonistic antibodies targeting tumor necrosis factor receptor type II, a novel, biologically-validated disease target implicated in a wide range of autoimmune diseases that has been difficult to drug with conventional medicines. The antibody program selected for development is designed to modulate the TNFR2 pathway in order to agonize - or activate - T regulatory cells and other anti-inflammatory cell populations, making this a promising approach to stimulating the immune system in ulcerative colitis, multiple sclerosis, vitiligo, and other autoimmune disease states. Under the 2021 research agreement, Nektar has tested antibodies computationally designed by Biolojic Design to precisely agonize the TNFR2 receptor. Following successful preclinical in vitro and in vivo studies, Nektar decided to exercise the license option and has been advancing the program through IND enabling studies since late December, 2023. If the NKTR-0165 candidate proceeds through clinical development, Biolojic Design is entitled to development milestones and sales royalties.