Three pharma companies to buy from Goldman Sachs

Jami Rubin, senior analyst at Goldman Sachs, says pharmaceutical companies need to start investing their funds sooner or else they will lose interest to their investors faster than they expect. The sector has made significant profits in recent years, with much of the revenue being concentrated in the pharmaceutical giants. Rubin offers three of them for purchase, based on the fact that they will risk and undertake investments in new technologies that will in turn raise profits.

Merck & Co. - Merck is the only company on Goldman's list to register more than 13.2% growth since the beginning of the year and Rubin remains optimistic that Keytruda's cancer drug developer will lead to future growth in the company. Rubin also expects the company very soon to announce the termination of its livestock care business, which is largely a loser in the financial statements. This would boost Merck by $4 to $6 per share.

AbbVie Inc. - One of the few companies in the sector with the most positively revised financial reports, which are expected to be record-breaking in the Q2 of 2018. AbbVie's first-quarter results surpassed analysts' expectations and Rubin expects additional revenue from Mayvret, Imbruvica and Venclexta, which will also contribute to the growth of the company in the future.

Bristol-Myers Squibb Co. - The success of Bristol-Myers Squibb in the short term is due to higher sales of Opdivo, while the competitive product of Merck, KN-189 is slowing down. Opdivo sales are expected to fall by as much as 70% over the next two years, according to Goldman Sachs, but if Bristol-Myers' expectations for a 30% decline are true, Rubin will make approximately $ 1 billion. until the end of 2019.

Rubin increased its pricing target to $65 from $62.

Source: Yahoo Finance

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