R u guys following Gilead Sciences?
PE is 30 rev and eps growth rates r off the charts.
The stock price is smothered by controversy over their Sovaldi solution’s cost; the efficacy is unquestioned.
Sovaldi is a dynamo of a drug.
Rizzz,
I posted this on the Pro Board a couple weeks back:
I just heard Dr. Harvey Alter (NIH) refer to the new generation of HCV anti-virals as cost-effective despite the sticker shock related to the up-front cost of treatment. He also suggested that triaging or tiered treatment regimens would raise ethical questions and only push the high cost of treatment to a later date.
Alter is an influential government scientist: http://en.wikipedia.org/wiki/Harvey_J._Alter. Should Congress actually get around to hearings to fully address treatment costs, I would expect him to testify.
The stock is actually up about 9% after languishing a bit after earnings. If revenue continues in a vein similar to Q1. The P/E would drop to <$15 assuming no movement in stock price. However, I would expect each quarterly earnings release to stoke increased interest.
Regardless of all the hand wringing over price, government health officials worldwide are extremely excited about this drug and the new treatment regimes that it facilitates.
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I posted on the Pro Board last week in response to an alert about this article: http://www.bidnessetc.com/21991-gilead-sciences-likely-to-be…
Not surprising, really. U.S. Government health care agencies have had a huge stake in addressing chronic blood-borne pathogens like HCV, HBV and HIV and ensuring a safe blood supply. Now that the tools are at hand to effectively deal with HCV, there is no way the U.S. Government can back away from a major public health victory.
The EU, although philosophically committed to this solution, will struggle with the burden on the multititude of socialized health care systems, as well as the economic disparity across the region.
There will be tremendous pressure by the EU for a reduction in the cost of treatment.
The competitive landscape will open up in 2015 somewhat, but Sovaldi will continue to have a major piece of the action as it will be paired with other complementary drugs for combo treatments aimed at reducing the length of treatment, while ensuring efficacy among harder to treat cases.
These comments were based on a recent presentation by J-M Pawlotsky, http://f1000.com/prime/thefaculty/member/4903744522533906.
Rizzz,
I posted about GILD a few months ago:
http://discussion.fool.com/gild-31221053.aspx?sort=username
In April, I purchased a 3% position at around $74. Their HIV business is not really growing fast. The growth is due to Solvaldi which has led to a 200% y/y earnings growth last quarter. Yes, if they repeat for the next 3 quarters then the ttm EPS will be around $6/share. I plan on holding my position for 1-3 more quarters as I believe that GILD is currently undervalued by 20% and that Solvaldi sales will be better than expected.
Chris
i follow them pretty closely. This was from 2 months ago when they bottomed at $64. Thought they were a no brainer buy and a strong conviction idea. They have appreciated some since then and are around $82 up 28%
http://discussion.fool.com/gillead-best-biotech-to-buy-now-31196…
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Rizz,
R u guys following Gilead Sciences?
Are you still buying at this price?
Mykie
Rizz,
R u guys following Gilead Sciences?
Are you still buying at this price?
Mykie
Yes