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BUY Recommendation: Gilead
Sciences (GILD)
Company Overview
• Gilead Sciences, Inc. is a research-based
biopharmaceutical company found in 1987 that
discovers, develops and commercializes
innovative medicines in areas of unmet medical
need.
Current Portfolio
HIV/AIDS
Number of
Product
6
In
Development
3
Liver Disease
2
8
Cardiovascular 3
3
Respiratory
2
3
Other
3
5
Type
HIV vs Hepatitis
Characteristic
HIV
Hepatitis C
U.S Death Annually
12,700
15,000
Infected Population
Worldwide
34 Million
170 Million
HIV Drug
-Stribild (QUAD): First HIV treatment
regimen that combine drugs from the
same company.
-4 in one pill
-#1 HIV regimen in the US
Company Profile
• In 2012, Gilead was ranked #2 in Fortune magazine’s
list of fastest-growing corporations by 10-year profits
• In 2012, Harvard Business Review ranked Gilead’s
Chairman and chief executive officer, John C. Martin,
#5 on its list of the 100 best-performing CEOs in the
world, as well as the top-ranked health care CEO.
Medicine Patent Pool (MPP)
Gilead is the first pharmaceutical company to sign an
agreement with the Medicines Patent Pool, which is
working to increase global access to high-quality, lowcost antiretroviral therapy through the sharing of
patents. The Patent Pool has been granted similar
licensing terms for Gilead HIV medicines as our generic
manufacturing partners.
Gilead has Medicines Patent Pool the right to develop
and distribute its in 100 developing countries.
Medicine Patent Pool (MPP)
Medicine Patent Pool (MPP)
HIV vs Hepatitis
Characteristic
HIV
Hepatitis C
Risk of reinfection
Reinfection with HIV
happens. In many cases
it may not have serious
implications unless the
new virus is drug
resistant
Reinfection with hepatitis
C occurs, and being
reinfected with a different
genotype may make it
more difficult to treat.
How infectious outside
the body
HIV is a fragile virus.
Dies quickly when
outside of the human
body
HCV is a tougher virus.
Can live for days outside
of the human body.
Speed of progression
People can live with HIV
for many years without
symptoms (average 5-8
without treatment).
People can live with
HCV for many years
without symptoms
(average over 10-15 for
people with coinfection).
Sofosbuvir vs Competitors
• Gilead’s Sofosbuvir is all-oral treatment that has
100% cure rate through 2 stages of clinical trail.
• Sofosbuvir is a once a day, single pill treatment
that eliminates the need for interferon
Sofosbuvir vs Competitors
• Bristol Myers Squibb Co. (BMY) made its own big
hep-C acquisition, but the experimental drug
turned out to cause one patient death and
complications with others, forcing the company
to drop development.
• Idenix Pharmaceuticals, Inc. (IDIX) had two of its
hep-C prospects put on clinical holds back in
November due to safety concerns. Idenix
discontinued their clinical development programs
for 2 hep-C drug candidates in February
Sofosbuvir vs Competitors
• Vertex Pharmaceuticals Incorporated
(VRTX) and Merck & Co., Inc. (MRK) ’s Hep-C
treatment require intravenous administration
and can cause flu-like symptoms for nearly a
year during treatment. Vertex’s Hep-C drug had
79% cure rate through 3 stages of clinical trail.
Sofosbuvir vs Competitors
Striblid
approved
Analyst Opinion: 20 Buy, 2 hold, 0 sell
GILD’s nearest nine competitors averaged 54%
buys
Investment Information
Striblid
approved
Prev Close: 47.72
1y Target
49.23
Est:
52wk Range: 22.67 – 49.48
Avg Vol (3m): 9,559,490
Market Cap:
P/E (ttm):
EPS (ttm):
Div & Yield:
Forward P/E:
GILD vs S&P Biotechnology Index
74.99B
30.03
1.64
N/A
30.03
Portfolio Placement / Recommendation
•
•
•
•
•
Sector : Healthcare
Current Holdings: ABT, ABBV, HLF, XLV
Target Sector Allocation: 6%
Current Sector Allocation: ~4.9%
Remaining Allocation:~ 1.1%, ~$6000
• BUY 125 shares of SGYP at market value (approx. $6000, 21% of
portfolio)
• Holding Period/Exit Strategy: 2-3 years. Aiming for long-term
profitability and potential