GILD - Embedded Expectations Analysis - 2021 01 05
Gilead Sciences Inc. (GILD:USA) currently trades near historical lows relative to UAFRS-based (Uniform) earnings, with a 7.3x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, and management may have concerns about Veklury efficacy, filgotinib trials, and their portfolio management processSpecifically, management may lack confidence in their ability to meet the demand for Veklury in Europe and they may be concerned about the progress of their filgotinib trials with the FDA. In addition, they may lack confidence in their ability to improve their portfolio management process, manage low marketing costs, and maintain their liquidity position. Furthermore, they may be overstating the impact of Trodelvy on their medicine pipeline, the potential of the Immunomedics acquisition, and their commitment to having a balanced portfolio. Also, they may lack confidence in their ability to forecast the uptake in Veklury and submit certain supplemental BLA submissions to the FDA by Q4. Finally, they may have concerns about disease severity and clinical outcomes of the coronavirus, the efficacy of Veklury, and the lack of PCR-confirmed patients for WHO's coronavirus study
Gilead Sciences is a research-based biopharmaceutical company that discovers, develops and commercializes medicines. The company's primary areas of focus include viral diseases, inflammatory and fibrotic diseases and oncology. The company's products include: Biktarvy for the treatment of HIV-1 infection in certain patients; Vosevi?, a single tablet regimen of sofosbuvir, velpatasvir and voxilaprevir for the re-treatment of chronic hepatitis C virus infection in adults; Vemlidy? for the treatment of chronic hepatitis B virus infection in adults with compensated liver disease; and Yescarta (axicabtagene ciloleucel) for the treatment of adult patients with relapsed or refractory large B-cell lymphoma.
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