Seeking Alpha

Nomura starts coverage on multiple biotechs

  • Nomura's Ian Somaiya (formerly at Piper) is out with a number of healthcare initiations.
  • Gilead (GILD +1.7%) is the firm's top biotech pick for 2014 as the company is "set to dominate the HCV market." GILD started at Buy. Price target is $118.
  • Neurocrine Biosciences (NBIX -3.2%) started at Buy. Somaiya sees peak sales of $700M for NBI-98854. Price target is $23.
  • Celgene (CELG +1.2%) started at Buy. "Revlimid for multiple myeloma, is less than a third of the way to realizing its peak sales potential," Somaiya says. Price target is $236.
  • Biogen (BIIB +4.1%initiated at Buy. Tecfidera, is "a blockbuster ... treatment for MS, with estimated peak sales of $9B," Somaiya notes. Price target is $368.
  • Alexion (ALXN +1.5%) initiated at Buy. Price target $150.
  • Pharmacyclics (PCYC +1.9%) will "transform the treatment paradigm and disease course of CLL and mantle cell lymphoma MCL." Shares started at Buy. Price target is $137.
  • Other initiations: Incyte (INCY +5.9%started at Buy. Synageva BioPharma (GEVA +3.7%) started at Buy. BioMarin (BMRN +1.2%), Amgen (AMGN), and Infinity Pharmaceuticals (INFI +2.8%) started at Neutral.
Comments (2)
  • My usual distrust of investment bank analysis is dampened here because I am a long term holder of CELG, BIIB, and GILD. I do my own analysis of those companies, and agree the growth in revenue from current therapies as well as the value in the pipelines makes these companies a long-term buy even at today's prices and backward looking P/E ratios. The ability to acquire and develop pipeline candidates is excellent at each of these companies. Short term prices may fluctuate, but in the long run they just keep becoming more valuable.
    8 Jan, 01:26 PM Reply Like
  • Mr Meyers, what do you mean with 'backward looking P/E ratios ? What about the opinion of GS regarding Celgene's growth
    8 Jan, 03:49 PM Reply Like
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