11:35 AM EDT, 09/27/2024 (MT Newswires) -- Option Care Health ( OPCH ) is facing some pressure on gross margins and profit dollar growth even though its headline revenue and earnings before interest, taxes, depreciation and amortization results in 2024 have been "solid" compared with consensus, Deutsche Bank said in a note Friday.

"A major part of the [Option Care Health ( OPCH )] narrative over the last few quarters has been investor fears around Stelara going biosimilar in early 2025 and what that means for the business' outlook," Deutsche Bank said.

The overhang around Stelara is one of the reasons fuelling the "bear narrative" and capping the upside to Option Care Health's ( OPCH ) multiple, according to the note.

Deutsche Bank has a buy rating on Option Care Health ( OPCH ) with a price target of $36.

Stelara is a brand of ustekinumab developed by Johnson & Johnson's ( JNJ ) Janssen Pharmaceuticals for the treatment of Crohn's disease, psoriatic arthritis, plaque psoriasis and ulcerative colitis.

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