Should I Buy Gilead Sciences (GILD)? A Trade Idea

Gilead Sciences is a big player in the biotech space, focused on antiviral drugs and therapies for HIV, hepatitis B and hepatitis C. As you look at this company, keep in mind its strong position in HIV with drugs like Biktarvy, Descovy and Truvada being the foundation of its portfolio.

The stock is trading under the ticker GILD and has been mixed lately. Up 8.17% in the last month but down 10.57% in the last 52 weeks. As of June 28, 2024 GILD closed at $68.61 with a market cap of $85.478 billion.

Gilead’s HIV franchise is a pillar of stability for the company. Its PrEP medications, particularly Descovy, are gaining share in HIV prevention. But be aware competition is increasing in this space.

Gilead has been trying to diversify and has been expanding into oncology. The acquisition of Kite Pharma brought Yescarta into the portfolio and entered the cell therapy space. But recent cancer drug trial setbacks have raised concerns about the oncology franchise.

Gilead’s hepatitis C drugs, Epclusa, Harvoni and Sovaldi have been big winners but are declining due to cure and competition. The company is now focusing on hepatitis B with clinical trials for potential breakthroughs.

Innovation is key to Gilead’s future growth. Lenacapavir, a long-acting HIV treatment, could change the face of HIV care if approved. It has been given breakthrough therapy designation by the FDA.

gilead stock forecast

Financials to watch:

  • Q1 2024 total product sales: $6.1 billion (6% increase)
  • Growth areas: HIV, oncology, liver disease

Risks: • US pricing • Patents expiring on key drugs, regulatory hurdles for new drug approvals, clinical trial setbacks

Investment thesis: • Cash flow from HIV franchise, dividend yield, oncology and cell therapy, pipeline of new medicines

As you look at Gilead Sciences weigh its HIV strength against the challenges of diversifying the portfolio. The company’s ability to navigate pricing, launch new products and expand into new therapeutic areas will be key to its long term growth.

Tools for GILD Stock Analysis

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Do your own due diligence. Always research before you trade. Different trading styles require different exit strategies so make sure you have one that fits your goals and risk.