Citi starts coverage on 'insulated' SMid biotechs amid healthcare policy uncertainty

Brokerage Citi initiates coverage on eight small and mid-cap (SMid) biotechs - 89bio ETNB.O, Apogee Therapeutics APGE.O, Avidity Biosciences RNA.O, BioNTech 22UAy.DE, Kiniksa Pharmaceuticals KNSA.O, Kymera Therapeutics KYMR.O, Moderna MRNA.O and PTC Therapeutics PTCT.O

Citi suggests SMid biotechs could be a good alternative to larger-cap stocks amid healthcare policy uncertainty

Recent economic uncertainties, including increased tariffs and slowing economic growth, have "underscored the defensive attributes" of biotech and pharma stocks, brokerage says

Higher-growth large caps such as Eli Lilly LLY.N and Vertex Pharma VRTX.O are likely able to absorb potential policy headwinds and "catalyst-driven" SMid biotechs are "insulated from macro uncertainties" - Citi

YTD, S&P500 Health Care index .SPXHC has grown ~5%, NYSE Arca Pharmaceutical Index .DRG has gained ~6% and NASDAQ Biotechnology Index .NBI up ~3.3%