Many investors want to buy shares of large pharma companies for the good stability that they can give. But huge growth often is not expected from these kinds of stocks.
That does not mean, though, that stronger growth is never possible with top biopharmaceutical stocks. Here are two big pharma stocks that investors believe might soar by at least 30% in the upcoming 12 months.
1. Bristol Myers Squibb
The consensus price for Bristol Myers Squibb is relative to a premium of almost 34% to the current price. Among the 22 analysts reviewed by Refinitiv, the most pessimistic of them believes that the pharma stock might jump at least 10% more.
This bullishness could be somewhat surprising. BMS’ top product, Revlimid, will have generic competition starting next year. The blood cancer drug created 27% of the company’s overall revenue in Q2.
So why do analysts like the stock so much? For one, that competition will be in limited amounts at first thanks to some contractual agreements. The company also has numerous other blockbuster products with growing sales, notably the popular blood thinner Eliquis and the cancer immunotherapies Yervoy and Opdivo.
BMS’ lineup is filled with newer drugs with huge potential too. Cancer cell therapies Breyanzi and Abecma along with sclerosis and ulcerative colitis drug Zeposia really stand out. Over the incoming few years, these and other products could make up for the sales declines for Revlimid.
Analysts search for better performance over the next 12 months from Sanofi. The average target for the French drugmaker is 35% over the current price. The lowest target among the three analysts spoken to expects the stock to increase by around 20%.
Sanofi’s Regeneron partnership gives the firm numerous growth drivers. And sales of Dupixent are going up and might pick up a lot more momentum with the FDA’s new restrictions against JAK inhibitors. Also their cancer drug Libtayo has gained steam with new approved indications.
Regeneron is not helping Sanofi on every front. The big drugmaker has products of its own with good sales growth, including the type 2 diabetes drug Soliqua, rare blood disorder drug Cablivi, and its vaccines.
Plus the company’s dividend is 4%, which makes it one of the most attractive pharma stocks out there today.
Author: Scott Dowdy