Morningstar Rating

Stock Research and Analysis

by Karen Andersen, CFA

Bulls Say

Gilead markets the three single-tablet regimens for HIV: Atripla, Stribild, and Complera. Once-daily dosing greatly increases patient compliance and reduces the risk of drug resistance.
Guidelines that aim to improve diagnosis and treatment rates provide strong tailwinds for growth in the HIV and hepatitis C markets.
With the approval of Sovaldi, Gilead holds claim to the only all-oral hepatitis C treatment regimen. None of Gilead's competitors have other proven nucleotide analogs approaching the market, making the $11 billion acquisition of Pharmasset look like a bargain. Read more 

Bears Say

Gilead's HIV franchise provides three fourths of the firm's revenue. Heavy dependence on tenofovir, which loses exclusivity in 2018, puts pressure on Gilead's hepatitis C portfolio to support growth.
Pricing pressure and reduced willingness to pay for convenience could weigh on Gilead's growth. Atripla will become a formidable generic competitor to Gilead's newer HIV products by 2021, and hepatitis C regimens from Bristol and AbbVie could spark price wars if PBMs negotiate aggressively.
Ongoing litigation with Roche, Merck, and Idenix could shave off some of Gilead's Sovaldi profits. Read more 

Management

We assign Gilead exemplary marks for stewardship based on the firm's moat-building investment strategies, good allocation of capital, and superior board independence and qualifications. Gilead has made several acquisitions and collaborative deals over   Read more 

Profile

Gilead Sciences develops and markets therapies to treat life-threatening infectious diseases, with the core of its portfolio focused on HIV and hepatitis B and C. The acquisitions   Read more 

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