Leerink analyst Geoff Porges was out with a few insights on Gilead Sciences, Inc. (NASDAQ:GILD), after hosting an R&D deep dive call with Gilead’s Chief Scientific Officer Norbert Bischofberger, and EVP and Chief Financial Officer Robin Washington on Wednesday. The discussion focused on the company’s mid- and late-stage pipeline programs.
Porges wrote, “Dr. Bischofberger conceded that Gilead’s current R&D portfolio was inadequate to support a company of Gilead’s size today. He indicated that this was an inevitable result of its rapid growth since 2013, and of its continued high quality bar for taking on, acquiring, or advancing new programs. Dr. Bischofberger reminded investors of the recent acquisitions of filgotinib (licensed from Galapagos) and the acetyl-CoA carboxylase (ACC) inhibitor program (acquired Nimbus Apollo), but readily admitted that the company needed to do considerably more to build the pipeline, whether through acquisition, partnership, or licensing.”
Furthermore, “Dr. Bischofberger also reviewed Gilead’s HIV development programs. He admitted that while Gilead’s new integrase inhibitor (INSTI) bictegravir (BIC) has a different resistance profile in comparison to Viiv’s INSTI’s dolutegravir (DTG), he didn’t believe this difference would be clinically or commercially important. Rather, he confirmed that the key differentiation for BIC will be the single tablet regimen Gilead is developing around BIC with emtricitabine (FTC) and tenofovir alafenamide (TAF); unlike DTG, BIC will not be available as a separate agent thus making use of the STR obligatory.”
The analyst maintained an Outperform rating on shares of Gilead Sciences, with a price target of $120, which represents a potential upside of 48% from where the stock is currently trading.
According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Geoff Porges has a yearly average return of -6.9% and a 7% success rate. Porges has a -5.8% average return when recommending GILD, and is ranked #3561 out of 3980 analysts.