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

Core Insights - Jefferies has initiated coverage on Gilead Sciences with a Buy rating and a $180 price target, while assigning a Hold rating to Amgen with a $350 price target, indicating a nuanced view on the biopharma sector [3][5][10] Gilead Sciences - Gilead is positioned as one of the best large-cap biotechs, benefiting from a clean intellectual-property runway until 2036, high operating margins, and overlapping franchises [2][4] - Q4 2025 revenue was $7.93 billion, exceeding the consensus estimate of $7.85 billion, with a full-year revenue of $29.4 billion, reflecting a 2% year-over-year increase [7] - Non-GAAP EPS for Q4 was $1.86, slightly above the estimate of $1.85, and full-year non-GAAP EPS rose significantly to $8.15 from $4.62 in 2024 [7] - The HIV therapy Biktarvy generated $3.97 billion in Q4, up 5%, while Descovy surged 33% to $819 million, with the newly launched Yeztugo expected to be a commercial catalyst [7] - Gilead's stock is currently trading at $146.63, up 19.46% year-to-date, with a forward P/E of 16x reflecting guidance of non-GAAP EPS of $8.45 to $8.85 in 2026 [5][11] Amgen Inc. - Amgen reported Q4 revenue of $9.87 billion, surpassing the estimate of $9.66 billion, with non-GAAP EPS of $5.29, well above the $4.83 estimate [8] - The growth driver was Repatha, which increased by 44% to $870 million, while Enbrel saw a significant decline of 48% to $532 million [8] - Amgen shares are currently trading at $376.97, reflecting a 15.96% year-to-date increase, but are above Jefferies' $350 target, indicating limited near-term upside [5][12] Oric Pharmaceuticals - Oric is a clinical-stage oncology company with no product revenue, but its lead asset, rinzimetostat, has shown a 55% PSA50 response rate in metastatic castration-resistant prostate cancer [9] - The company holds $392.3 million in cash, providing a funding runway into the second half of 2028, despite a recent 16.07% drop in shares due to competitor news [6][9] - The consensus analyst target for Oric is $21.23, while its current price is $11.65, indicating potential upside [9] Analyst Perspectives - Gilead's long IP runway and diversified revenue base, along with a 2.2% dividend yield, make it attractive to income-oriented investors [13] - Amgen's stock has largely priced in strong execution, with risks from biosimilar competition and an unproven obesity pipeline [12][14] - Oric's binary risk nature is highlighted, with significant implications for stock performance based on upcoming clinical data readouts [15]