Truist says biopharma sector needs 'more M&A for recovery'; downgrades Merck

MRK Holdings

08/01/2025 10:14

** Brokerage Truist Securities says 2025 is likely to be a
"stock picker's market" for the biopharma sector, with less of
broad healthcare investing and more stock selection
    ** "2024 disappointed on the M&A front; the sector needs
bigger/more M&A for recovery" - Truist
    ** Brokerage downgrades Merck & Co  MRK.N  to "hold" from
"buy", trims PT to $110 from $130 
    ** Shares marginally down premarket; MRK fell 8.75% in 2024
    ** For MRK, Truist highlights Gardasil China concerns,
looming loss of exclusivity (LOE) of cancer drug Keytruda in
2028 and lack of near-term catalysts leading to a cautious
stance
    ** However, brokerage cites conviction around Eli Lilly
 LLY.N , AbbVie  ABBV.N  and Regeneron  REGN.O 
    ** Truist also revised PTs for the following large-cap
biopharma cos;
 
 
 Company     Current PT  Prior PT
 AbbVie      $211        $215
  ABBV.N                 
 Bristol     $65         $62
 Myers                   
  BMY.N                  
 Amgen       $298        $333
  AMGN.O                 
 Biogen      $220        $302
  BIIB.O                 
 Regeneron   $1,004      $1,126
  REGN.O                 
 

 (Reporting by Joel Jose in Bengaluru)
 ((joeljose@thomsonreuters.com))