CI - Cigna upgraded Anthem downgraded at Morgan Stanley citing Humira biosimilars

Morgan Stanley has raised its rating on Cigna (NYSE:CI) and lowered the recommendation for Anthem (ANTM), citing the launch of copycat versions to AbbVie’s (ABBV) blockbuster anti-inflammatory medication Humira in July 2023. Upgrading Cigna (CI) to Overweight from Equal Weight, the analysts led by Ricky R Goldwasser argue that the managed care player, which also operates Evernorth pharmacy benefits manager, could profit from the launch of Humira biosimilars. Since it acquired the unit, formerly known as Express Scripts, in 2019, Cigna’s (CI) trading multiple has contracted 1.1x amid concerns such as increased exposure to the commercial market and PBM-related risk, the analysts point out. “But sentiment should turn more favorable in 2023 as Accredo, Express’s legacy specialty pharmacy, has an opportunity to play a major role” with a potentially high demand for biosimilars when bioequivalent Humira reaches the market, they added. The price target raised to $296 from $283 per

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Cigna upgraded, Anthem downgraded at Morgan Stanley citing Humira biosimilars