- In an interview with Bloomberg News, Mizuho Securities' Salim Syed says pricing in the biotech sector is "not getting any better" but "will not get substantially worse" in 2018. He says pricing and M&A activity will be key areas next year and beyond after a slowdown in deals this year.
- Mr. Syed also says lower taxes for repatriated funds will be a positive, especially for cash-rich outfits like Amgen (AMGN -1.6%) and Gilead Sciences (GILD -0.3%) adding that bringing funds back to the U.S. should stoke deals.
- Gilead (BUY/$83): A top pick for 2018 on bullish prospects for Yescarta. It could pursue deals but it would be potentially distracting from the Yescarta launch.
- Amgen (BUY/$192): A "risky long" with attractive balance sheet and cash for acquisitions. Likes prospects for biosimilars and cholesterol med Repatha.
- Biogen (BIIB -1.7%) (BUY/$400): A top pick for 2018 on bullish prospects for Alzheimer's candidate aducanumab. Sees a 10% boost to share price if it improves its messaging around Spinraza in Duchenne muscular dystrophy.
- Celgene (CELG -0.8%) (BUY/$128): Needs to do deals to reignite share growth.
- Separately, analyst Difei Yang likes Zogenix (ZGNX -4.4%) and ViewRay (VRAY -0.7%) adding that ZGNX, Nektar Therapeutics (NKTR -3.1%), Aerie Pharmaceuticals (AERI -2.5%), Revance Therapeutics (RVNC -2%) and Achaogen (AKAO -0.5%) are all potential acquisition targets.
- Source: Bloomberg
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