ONC - Gilead Sciences' Best Days May Be Ahead - Here's Why

2025-05-26 10:32:36 ET

Summary

• Despite a sharp decline in sales of COVID-19 blockbuster Veklury, Gilead Sciences once again beat consensus revenue and EPS forecasts.
• The drugs whose performance impressed me greatly in Q1 2025 and which played a key role in maintaining Gilead's EBIT margin above 38% are Biktarvy, Livdelzi, and Yescarta.
• Meanwhile, the sales dynamics of its oncology franchise left me with mixed feelings, including due to the increasing pressure from more effective CAR T-cell therapies, bispecific antibodies, and ADCs.
• However, my faith in Trodelvy's commercial prospects has increased after Gilead published promising results from the ASCENT-04 and ASCENT-03 clinical trials.
• In addition to Gilead's net debt/EBITDA ratio remaining below 1.2x, later in the article, I will comprehensively explain why I am upgrading its rating from 'Buy' to 'Strong Buy.'

Gilead Sciences, Inc. 's ( GILD ) stock price has fallen 4% over the past two months, which I estimate is mainly due to continued apathy and fear on Wall Street even after progress in tariff negotiations between the U.S. and India and an end to Trump's attacks on Federal Reserve Chairman Jerome Powell....

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