Rev growth last 1/4 was 97%
This 1/4 est is 103% at 5.62 B
[Yahoo Finance #'s r a little diff’t]
And this:
UBS analyst Matthew Roden and team are feeling pretty bullish on Gilead Sciences (GILD) heading into earnings on July 23:
Special to The ChronicleIn the large caps, estimates look beatable across the board, none more than GILD, where we are now 26% ahead of consensus (we raise our PT to $115)…Based on strong Rx trends for Gilead’s Sovaldi, we increase our 2Q sales est. by $1.3bn to $3.25bn (that’s not a misprint), $650m above consensus. Also not fully appreciated is the 3Q settlement of the 2014 convert in cash, amounting to a 39m share repo…
Beware: the pricing of their main drug is being questioned by U S Gov’t.
Yes, I have a 3.3% position and am happy with my basis, $81.17.
I’ve been trying to buy more CELG but I really hate buying when it is in an up swing. Saul has told me over and over to not get anchored but I haven’t found the key yet to get my a** in gear and get it done (that’s because I should be concentrating on my brain, not my a**).
Wow…look at AMZN today! It finally may make it back to what I paid for it last year…and in this strange market. Go figure.
Mykie
Can you elaborate on that statement? Is this still just general background noise, or has Congress actually initiated hearings?
Hi Tomagi,
Yes, they have begun asking GILD about their pricing. I read it somewhere but ignored it as the company had said they could substantiate the price based upon other similar drugs, and I believed them. You could probably just go to Yahoo, put in GILD and then look below the graphs/charts for the list of articles. That’s where I think I saw it.
At some point during the congressional investigation, there will probably be a buying opportunity for a couple of reasons:
If the investigation shows the pricing is too high and force them to lower it…so what? The drug still works and the margin (and volume) is so high I don’t think the lower margin would depress the price for long;
If the investigation shows the pricing is justified, you better get in now.
If the investigation is a lot of fluff, (most probable case in my mind) the market price will continue rising naturally with the incredible revenue they are generating.
Thus the worse case scenario would be a delay in the price rising which is not impactful to us buy and holders.
Mykie
Caveats: Don’t do as I say nor as I do, just opining since you asked
The Senate Finance Committee is asking the Foster City-based drug maker (NASDAQ: GILD) for information about the drug and its pricing. Meanwhile, 14 European countries have vowed to press for deep discounts of the drug’s price on the continent.
I consider it background noise up until they actually hold public hearings in Washington, and then, mainly, just a spectacle. I don’t think anything will happen this year, except big profits. I think that with the other drugs coming out in the next year, Congress will(and should) wait for a free-market solution. When that doesn’t happen, then they will hold hearings. It won’t happen, because Gilead will continue to have the most efficacious drugs used in treatment and will be integral to the combo treatments on the horizon for the hard-to-treat cases.
Europe is another story. The EU governments are really worried about the cost and impact to their socialized healthcare systems. Some of the member states already have well-publicized budgetary issues. The more fiscally responsible countries must feel significant anxiety about having to subsidize costly hepC treatment programs for the whole EU. I think that they will force the price down for the EU.
It will be interesting to watch from a social policy standpoint. But, there are two things that seem to have some Americans up in arms and for that reason will be leveraged by some in Congress: 1) this drug is cheap to make (but, product development costs were huge) and 2) they are practically giving it away in the 3rd World (not, really when you adjust for GDP and per capita income).
If Congress tears into this, it will also have to come to terms with its own orphan drug policies. There are plenty of quality of life-sustaining/enhancing treatments that run well into the hundreds of thousands of dollars over multi-year periods. Also, public health bureaucrats are pretty stoked about finally having a tool for dealing with this rather silent epidemic. This will be debated in a briar patch.
Caveats: Don’t do as I say nor as I do, just opining since you asked
Fair enough, but I’ve already got skin in the game.