Goldman Sachs has initiated Amgen (AMGN+3.1%) with a buy rating due to its inflammation franchise, expanding oncology portfolio and biosimilar business.
The firm has a $258 price target (~27% upside).
Analyst Salveen Richter sees multiple opportunities at Amgen that can help overcome the end of the decade patent expirations on key drugs.
He cites the launches of tezepelumab in severe asthma, Otezla (apremilast) in mild-to-moderate plaque psoriasis, and AMG-451 in atopic dermatitis.
Richter adds that Lumakras (sotorasib) for non-small cell lung cancer and four additional biosimilars in the next few years will add to growth.
He notes that Amgen is currently trading at ~37% discount to U.S. biopharma peers.