Amgen Inc.

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Slightly Bullish +15

Gilead Gets a Buy, Amgen a Hold and ORIC a Vote of Confidence: Wall Street’s Latest Biopharma Calls Explained

AI-generated analysis

📈 Jefferies initiates coverage on Gilead Sciences (GILD) with a Buy rating and $180 price target, citing a clean IP runway until 2036 and high operating margins.

📉 Jefferies assigns a Hold rating to Amgen (AMGN) with a $350 price target, noting the stock has already rallied 35% and is trading above this level.

➕ JPMorgan maintains an Overweight rating on Oric Pharmaceuticals (ORIC) following a 16.07% share price drop driven by unrelated competitor news.

💰 Gilead reported Q4 2025 revenue of $7.93 billion, beating the $7.85 billion consensus estimate, with non-GAAP EPS of $1.86.

🔬 Amgen delivered Q4 revenue of $9.87 billion against a $9.66 billion estimate, with Repatha leading growth at +44%.

📉 Amgen's Enbrel revenue declined 48% to $532 million in Q4, signaling continued structural decline for the established franchise.

💊 Gilead's flagship HIV therapy Biktarvy generated $3.97 billion in Q4, up 5%, while Descovy surged 33% to $819 million.

🧬 Oric's lead asset rinzimetostat posted a 55% PSA50 response rate in metastatic castration-resistant prostate cancer trials.

💵 Oric holds $392.3 million in cash, projecting a funding runway into the second half of 2028.

📊 Gilead shares are up 19.46% year-to-date and trade at $146.63, implying upside from Jefferies' $180 target.

⚠️ Amgen faces real headwinds from accelerating biosimilar competition for Prolia and XGEVA.

🎯 Oric's consensus analyst target is $21.23 against a current price of $11.65, reflecting binary pipeline risk.

Bullish Signals
  • Gilead has a clean intellectual property runway with no major loss of exclusivity until 2036, ensuring predictable cash generation.
  • Gilead reported Q4 revenue of $7.93 billion, beating the consensus estimate of $7.85 billion.
  • Gilead's non-GAAP EPS of $1.86 in Q4 beat the estimate of $1.85, showing strong profitability.
  • Descovy revenue surged 33% to $819 million in Q4, demonstrating strong growth in a key franchise.
  • The newly launched Yeztugo adds a commercial catalyst for Gilead heading into 2026.
  • Gilead offers a low beta of 0.37 and a 2.2% dividend yield, appealing to income-oriented investors.
  • Amgen's Repatha revenue grew 44% to $870 million in Q4, leading overall growth.
  • Amgen beat earnings estimates with non-GAAP EPS of $5.29 versus an estimate of $4.83.
  • Oric's lead asset rinzimetostat showed a 55% response rate in prostate cancer trials, indicating differentiated data.
  • Oric holds $392.3 million in cash, providing a funding runway into the second half of 2028.
  • JPMorgan views Oric's recent stock dip as unjustified given the company's strong pipeline data.
Risk Factors
  • Amgen shares are trading at $376.97, meaningfully above Jefferies' $350 price target, limiting near-term upside.
  • Biosimilar competition for Amgen's Prolia and XGEVA is accelerating, posing a threat to revenue stability.
  • Enbrel revenue declined 48% to $532 million in Q4, signaling how quickly established products can erode.
  • The MariTide Phase 3 obesity program for Amgen could disappoint in a competitive market if results are not certain.
  • Oric is a clinical-stage company with no product revenue, carrying substantial binary pipeline risk.
  • Any negative Phase 3 readout for Oric's rinzimetostat or enozertinib in 2026 could be severely punitive for the stock.
  • Gilead's cell therapy revenue declined 6% to $458 million in Q4, and Veklury sales fell 37%.
Full Analysis
Wall Street analysts have issued fresh ratings on major biopharma stocks, with Jefferies initiating a Buy on Gilead Sciences and a Hold on Amgen, while JPMorgan maintained an Overweight rating on clinical-stage oncology firm Oric Pharmaceuticals. These moves reflect a nuanced market view where Gilead is seen as well-positioned for long-term cash generation, Amgen is viewed as fairly valued after a significant recent run-up, and Oric is considered undervalued following a competitor-driven stock dip. Gilead reported strong Q4 2025 results with revenue of $7.93 billion, beating estimates, driven by growth in its flagship HIV therapies Biktarvy and Descovy. The company benefits from a clean intellectual property runway extending to 2036, allowing for predictable cash flow and shareholder returns. Conversely, Amgen delivered solid Q4 earnings but faces headwinds from biosimilar competition on key products like Prolia and XGEVA, as well as declining revenue in its Enbrel franchise. Oric Pharmaceuticals, a clinical-stage oncology company with no current product revenue, saw shares drop 16% due to unrelated competitor news. Analysts view this pullback as unjustified given the differentiated data of its lead asset, rinzimetostat, which showed a high response rate in prostate cancer trials. The company holds substantial cash reserves providing a runway into late 2028, though it carries binary risk associated with upcoming Phase 3 trial readouts expected in 2026. Analysts highlight specific financial metrics and risks for each ticker. Gilead trades at a forward P/E of 16x with a low beta of 0.37, offering a dividend yield of 2.2%. Amgen's stock trades above Jefferies' $350 price target, limiting near-term upside despite strong execution. Oric presents a high-risk, high-reward profile with a consensus analyst target significantly higher than its current price, contingent on successful clinical data readouts in the second half of 2026.