Health and Healthcare
Despite Market and Sector Risks, Why Credit Suisse Now Loves Top Biotechs
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Credit Suisse sees solid fundamentals, despite a harsh market landscape, for large-cap biotech firms. There is a challenging macro setup, but headwinds combined with a relatively attractive valuation could carry these firms.
The top stocks on Credit Suisse’s list are Gilead Sciences Inc. (NASDAQ: GILD), Amgen Inc. (NASDAQ: AMGN), Celgene Corp. (NASDAQ: CELG), Vertex Pharmaceuticals Inc. (NASDAQ: VRTX), Incyte Corp. (NASDAQ: INCY) and BioMarin Pharmaceutical Inc. (NASDAQ: BMRN). The firm initiated each of them with an Outperform rating.
The investment bank has a $125 price target on Gilead Sciences. The consensus view of Gilead is that there is a major patent cliff for the $13.5 billion HIV franchise in 2018 to 2021. For its hepatitis C franchise, there are also concerns around a lack of sustainability of revenues. Shares of Gilead were trading down 2.2% at $87.97 on Wednesday, with a consensus analyst price target of $123.13 and a 52-week trading range of $86.00 to $123.37.
Credit Suisse target price for Amgen is $205. The firm’s thesis is focused on a few points:
- Near-term pipeline data
- A positive view on PCSK9 outcomes
- A bullish stance on biosimilars
- Confidence in the base business estimates
Amgen shares were trading at $150.93, with a consensus price target of $184.31 and a 52-week range of $130.09 to $181.81.
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