Gilead has had a flat trajectory since February 2021 and there was little improvement after the latest financial result as well. While the company did witness a 16% growth in overall product sales, this was largely driven by Veklury (the remdesivir brand catering to Covid-19 patients) and the company’s top-line was hit by loss of exclusivity for key HIV drugs like Truvada and Atripla. The company is facing heavy competition from generics and biosimilars in the HIV category and its Hepatitis C business is also down as a result of fewer patients given the Covid-19 pandemic. The company was in the news for its collaboration with Merck to develop and commercialize long-acting, investigational treatment combinations of its own lenacapavir and Merck’s islatravir in HIV. There are rising concerns with respect to the increasing number of vaccines and the rising vaccine penetration resulting in a much lower demand for Veklury in the coming quarters. We maintain our ‘Hold’ rating on the stock.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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