Credit Suisse Launches Biotech Coverage: Gilead (GILD), Amgen (AMGN), Celgene (CELG) Garner Outpeform Rating; Biogen (BIIB) at Neutral

Credit Suisse analyst Alethia Young launched coverage on a host of biotech names Wednesday. Young was previously at Deutsche Bank.

Outperform:

• Gilead Sciences (NASDAQ: GILD) OP, $125 PT - Young said GILD is no value trap
• Amgen (NASDAQ: AMGN) OP , $205 PT. Young is positive on: (1) near-term pipeline data, (2) a positive view on PCSK9 outcomes, (3) a bullish stance on biosimilars, and (4) confidence in base business estimates.
• Celgene (NASDAQ: CELG) OP, $149 PT. Young said the stock is cheap relative to its growth. They see 2016-2020 CELG rev & EPS CAGRs of 17% & 22%, versus large-cap biotech avg ex-CELG of 4% & 7%.
• Vertex Pharmaceuticals (NASDAQ: VRTX) OP, $151 PT - Young said Vertex has no real competition in sight, and they think its advantage is sustainable due to innovation.
• Incyte Corporation (NASDAQ: INCY) OP, $110 PT - Young said they see upside potential on other programs besides epacadostat (the IDO)
• Biomarin (NASDAQ: BMRN) OP, $110 PT - Young said the pipeline is the key focus as they move past DMD. The pipeline could be worth $4.1B, the analyst said.
• Alnylam Pharmaceuticals (NASDAQ: ALNY) OP, $154 PT - Young is positive citing (1) a number of different clinical opportunities maturing toward proof of concept, (2) meaningful catalysts over the 12 months on various programs, and (3) powerful growth platform technology.
• PTC Therapeutics, Inc. (NASDAQ: PTCT) OP, $36 PT - Young says low expectations create opportunity.
• Mesoblast (NASDAQ: MESO) OP, $10 PT - Young see the opportunity for one or two late-stage programs that could have potential blockbuster assets
• Coherus BioSciences (NASDAQ: CHRS) OP, $25 PT - Young said biosimilars are coming and Coherus is one of the first and only pure-play biosimilar companies.

Neutral:

• ​Biogen (NASDAQ: BIIB) N, $322 PT - Young expects the base businesses continue to have headwinds
• Regeneron (NASDAQ: REGN) N, $552 PT - Young likes the platform, but says the stock is fairly valued.
• Alexion Pharmaceuticals (NASDAQ: ALXN) N, $201 PT - Young said competition may be an overhang near-term

Underperform:

• Xenoport (NASDAQ: XNPT) UP, $4 PT - Young is sceptical that Horizant sales meaningfully pick up to a level that is more than what the company is spending on selling the drug.

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