Amgen (AMGN), Biogen (BIIB), Celgene (CELG) and Gilead Sciences (GILD) could look to M&A following Donald Trump’s election as 2017 sets up with fewer regulatory hurdles and a likely biotech resurgence, RBC analyst Michael Yee said Monday.
Biotech stocks have surged since Trump’s election, largely on the notion that he will be less likely to pressure drug prices than Hillary Clinton and likely to push business-friendly legislation, including tax incentives to repatriate cash to the U.S.
With the election uncertainty over, Yee expects the big four biotechs to make good on M&A plans as capital remains inexpensive and organic growth slows. Trump appears poised to embrace innovation within his administration, Yee wrote in a research report Monday.
