Over the course of 2017, biopharmaceutical companies more or less kept pace with the markets, ending up with a return just a little higher than the S&P 500. But going in to 2018, these stocks have the potential to break out. Keep in mind there has been a rising tide from this nine-year raging bull market but plenty of factors have held biotechs back as well.
In the past, companies in the health care sector have been heavily scrutinized for their pricing practices, which led to a big witch hunt that, among other things, seemingly ended with the infamous Martin Shkreli going to jail. In this time, Republicans also failed to achieve their goal of repealing the Affordable Care Act, or Obamacare. However, all these are in the past and 2018 is wide open, having kicked off with some promising tax reform.
24/7 Wall St. has taken a look at a few different brokerage firms and their biotech decks for 2018. Jefferies took an in-depth look, listing about 30 biotech events coming this year, while Merrill Lynch focused on a few companies that it believes have strong catalysts in 2018.
And now Credit Suisse has some crossover with those firms in terms of what it expects this year. Credit Suisse has put together a list of biopharma companies in its coverage universe that stand to make significant moves in 2018, whether to the upside or downside.
Bristol-Meyers Squibb Co. (NYSE: BMY) is expecting data for Opdivo, in its checkmate-227 trial in the first half of 2018. Shares of Bristol-Meyers were last trading at $61.89, with a consensus price target of $63.86 and a 52-week range of $46.01 to $66.10.
Merck & Co. Inc. (NYSE: MRK) is scheduled to release data for Keytruda in its Keynote-042 trial in the first half of 2018. Merck shares were trading at $56.99, with a consensus price target of $65.23 and a 52-week range of $53.63 to $66.80.
Aimmune Therapeutics Inc. (NASDAQ: AIMT) is looking for AR101 data in its Palisade trial in the first quarter of 2018. Shares closed trading at $38.02, with a consensus price target of $55.50 and a 52-week range of $15.97 to $40.00.
Allergan PLC (NYSE: AGN) has a few different events coming in 2018. The firm is looking for Phase 3 data for Ubrogepant in the first quarter. Allergan is also awaiting Esmya approval with an action date set for March 27. Also at some point in 2018, the firm expects to launch its Restasis generic drug. Allergan ended the week at $172.29 a share, with a consensus price target of $224.76 and a 52-week range of $160.07 to $256.80.
AbbVie Inc. (NYSE: ABBV) is expecting Rova-T data in the second quarter of 2018. Shares of AbbVie last traded at $101.11, with a consensus analyst target of $100.75 and a 52-week range of $59.27 to $101.20.