Allergan plc, Celgene Corp. and Biogen Inc. had the most favorable consensus recommendations from analysts who cover the biopharmaceutical industry heading into 2018, according to data compiled by S&P Global Market Intelligence.
Allergan is the top pick for 2018 for Leerink analyst Seamus Fernandez, according to a Dec. 18 note. Fernandez cited the drugmaker's pipeline, which includes treatments for migraines and age-related macular degeneration, an eye disease.
The maker of the Botox cosmetic treatments also has a "sustainable" aesthetics business, Fernandez said. The company won U.S. regulatory approval in December for a nonsurgical way to reduce fat.
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Celgene recently presented updated trial results for a cancer therapy it's developing with Bluebird Bio Inc. at the American Society of Hematology conference. Mizuho analyst Salim Syed said in a note that he walked away from Celgene's investor event at the conference feeling more positive about the U.S. company's growth prospects. Celgene is actively reviewing acquisition opportunities, Syed said.Biogen's Spinraza, a new treatment for spinal muscular atrophy, has beaten sales expectations, and the U.S. biotechnology company has called the medicine a key driver of future growth. Biogen licensed a late-stage experimental multiple sclerosis treatment from Alkermes in November, a deal that Evercore ISI analyst Umer Raffat called "a win for both sides."
GlaxoSmithKline plc, or GSK, and Sanofi were the least favored stocks among the 20 largest biopharmaceutical companies by market value.
GSK's new CEO, Emma Walmsley, has embarked on a cost-cutting drive and has declined to assure investors that the company's hefty dividend will not be cut in the near-to-mid future in order to fund an acquisition. Analysts are uncertain of Walmsley's strategic outlook for the company, which she took over about six months ago.
Paris-based Sanofi recently held an analyst update at which it outlined plans for a raft of new treatments in development and novel technological approaches to research. But analysts appeared frustrated with the timeline, with many of the novel compounds still in the early stages of research. Analysts were also keen to hear whether Sanofi might attempt to bolster its pipeline via acquisitions – having lost out on two last year – a suggestion that CEO Olivier Brandicourt played down on the grounds of fiscal prudence.

