US Biotechnology — SMids 3Q26 preview: Sustaining interest beyond the macro noise

Investor engagement in SMid biotech remains high into 3Q26, supported by continued catalyst calendar and BD engagement. Compared with large-cap Biopharma, where policy and AI dominate many conversations, SMids offer a more direct investment case around clinical data, regulatory progress, and launch execution. Higher interest rates remain a valuation and financing headwind, but investors generally view the increase as temporary, allowing IPO momentum to continue. These dynamics support a favorable setup into YE26 and 2027, with pivotal readouts, filings, and launch updates providing multiple opportunities to build confidence and sustain investor interest. Citi maintains all ratings and updates its models: Amylyx's target price rises to $39 from $32 and Novavax to $8 from $7; Jazz 3Q26 revenue is modeled at $1.23B (+7% y/y) with Ziihera launch execution the key investor debate;