According to Cowen analyst Phil Nadeau, third party sources indicated that Gilead Sciences, Inc. (NASDAQ:GILD) increased today the U.S. prices of several products by 7-10%. The products are Cayston, Complera, Letairis, Ranexa, Stribild, and Zydelig.
Nadeau noted, “Gilead typically takes one price increase each year on its HIV products. Therefore, today’s price increases deviate from the historical pattern. We suspect that these increases were taken on the TDF-based regimens to help accelerate the switch from TDF to TAF in advance of TDF patent expirations beginning in 2018. In fact, with this morning’s price increase Complera is now at a premium Odefsey (TAF version of Complera), and the premium of Stribild over Genvoya (TAF version of Stribild) has increased. The WACs of Gilead’s Odefsey and Genvoya remain at $2,346/month and $2,578/month respectively. Beyond Gilead’s HIV franchise, price increases were also taken on Cayston (+10%), Letairis (+7%), Ranexa (+10%), and Zydelig (+10%).”
Nadeau maintained an Outperform rating on shares of Gilead Sciences, with a price target of $125, 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 Phil Nadeau has a yearly average return of -0.9% and a 38% success rate. Nadeau has a -6% average return when recommending GILD, and is ranked #2881 out of 4001 analysts.
Out of the 22 analysts polled by TipRanks, 15 rate Gilead Sciences stock a Buy, while 7 rate the stock a Hold. With a return potential of 34.1%, the stock’s consensus target price stands at $113.50.