J.P. Morgan's healthcare analyst Cory Kasimov weighed in with a few insights on Gilead Sciences, Inc. (NASDAQ:GILD), after hosting a call with the company’s COO John Milligan, as part of J.P. Morgan 2015 Spring Biotech Conference Call Series. The analyst had a detailed discussion on HCV, HIV, the company’s earlier stage pipeline, as well as business development. 

The following bullets contain some highlights from Kasimov's note:

  • The capacity of the system to treat HCV patients is expanding in the US driven by 1) increased desire to treat, 2) more docs willing to treat given the relative ease of the new wave of therapies vs. past options, and 3) more kinds of doctors (e.g. IDs, GPs) willing to treat.
  • While data on the effectiveness of the exclusionary formularies is anecdotal at this point, GILD noted that, for example, docs with patients who are truly intolerant to ribavirin have been able to get access to Harvoni. On the flip side, there are very few patients where Viekira Pak is appropriate and Harvoni is not, so the company isn’t seeing much of the reverse.
  • The company is “healed” following the Pharmasset acquisition and now has the capacity/is more open to larger acquisitions than they have been in the past, though a more significant deal/partnership would still have to have the right characteristics – either cutting edge/unique OR synergy with current assets/expertise.

The analyst rates the stock an Overweight with a price target of $116, which implies an upside of 18% from current levels.

According to TipRanks.com, which measures analysts' and bloggers' success rate based on how their calls perform, analyst Cory Kasimov has a total average return of 8.3% and a 46.3% success rate. Kasimov has an -1.8% average return when recommending GILD, and is ranked #788 out of 3568 analysts.