Gilead Still A 'Top Pick' For Barclays

May 1, 2015

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In a report published Friday, Barclays analysts maintained an Overweight rating on Gilead Sciences Inc (NASDAQ: GILD), with a price target of $125.

Gilead Sciences reported robust 1Q results, with upside in both top line and bottom line, driven by Harvoni’s impressive performance. “Notably, strong 1Q performance was differentiated versus large cap biotech peers,” the analysts mentioned.

The company announced that it now has the capacity to treat around 250-300 K hep C patients in 2015. “While hep C discounts may increase over 2015, we view the 46% gross-to-net guidance as a worst case scenario and expect the conversation to increasingly focus on broader patient access – which is just beginning to play out,” the analysts stated.

Gilead Sciences increased its 2015 net product sales guidance, besides reporting steady progress across its NASH, HBV, RSV and oncology pipelines. The company also outlined strategies for launching its next generation therapies for treatment of HIV.

The EPS estimate for FY15 has been raised from $10.00 to $10.40.

The company’s market leadership in hep C is expected “to be further strengthened with Harvoni, despite competition,” the report said, while adding, “We expect Gilead to continue to innovate and raise the bar in hep C with a pangenotypic regimen and a shorter duration of therapy. Additionally, we expect the core HIV business to remain strong.”