Gilead Sciences (GILD:US)

Last update - 25 November 2020 By Rivkin

Gilead Sciences Inc. (GILD) is a pharmaceutical company that researches, develops and produces therapeutics for patients suffering life threatening diseases including HIV, AIDS, liver disease, hepatitis B & C, cancer, cardiovascular and respiratory conditions.

Key Statistics
52-Week Range Avg. Daily Vol (3 Mo) Market Value Dividend Yield Float %
Target Price Consensus Rating
(5 strong buy – 1 strong sell)
Next Earnings Announcement
39.19 – 62.34 12,931,357 172,855.10 1.7% 62.0% 62.81 3.62 13/12/2021

 

GILD’s virology products, mainly for the treatment of HIV, accounted for 69% of sales as of Q3 2020 and an estimated 80% of U.S. HIV patients taking a Gilead product. Gilead’s hepatitis C franchise was once the centrepiece of Gilead’s drugs had slowed in recent years and is expected to continue with a steady decline. It’s COVID-19 therapy, Remdesivir, may deliver a short-term boost to revenue although the emergence of other vaccines is likely to undercut demand which is also dependant on hospitalisations. Gilead’s oncology franchise has so far failed to produce significant revenue, accounting for roughly 2.5% of sales in 2019. The HIV franchise is expected to provide stable revenue through to 2023 however its other franchises, including pipeline and existing drugs, provide few meaningful growth drivers.

 

 

Geographically the U.S. accounts for a significant portion of sales, totalling 74% in 2019, followed by Europe 16%, and 10 from other markets. Products are distributed through direct sales teams to physicians, hospitals, clinics and healthcare providers as well as through third-party distributors who have the exclusive right to promote the drugs within a territory.

For the year ending 2020 revenue is forecast to rise modestly +2.1% to US$23,621m and flat in 2021 again at US$23,621m. Adjusted earnings per share is expected to remain unchanged in 2020 and 2021 at US$6.60 and US$6.59 respectively. Based on these figures the stock trades on forward P/E multiples of 9.1 for 2020 and 2021, a 10 and 14 discount to peer’s which trade on an average of 10.1 and 10.6 respectively.

The average target price of analysts covering the stock is $73.77 with 45% of analysts rating the stock as a buy, compared to 6% as a sell and 48% as a hold.

 

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