Third party sources are saying Gilead Sciences, Inc. (NASDAQ:GILD) domestic Wholesale Acquisition Costs (WACs) of various products have seen a price boost, to the tune of 6.9%, which Phil Nadeau at Cowen takes in bullish stride. The analyst continues to bet on the biotech giant’s long-term revenue longevity, dismissing investor sentiment that underestimates and undervalues the franchise’s financial prospects.
Therefore, the analyst reiterates an Outperform rating on shares of GILD with a $90 price target, which represents a 27% increase from where the stock is currently trading.
Not only were prescriptions in the HIV franchise in the process of an evolution to a TAF-based regimen raised 6.9%, but notably, even extending past Gilead’s HIV belt, including Complera and Stribild, medicines like Cayston, Letairis, Ranexa, and Zydelig also have seen the same price lift.
Nadeau asserts, “These increases are consistent with Gilead’s historical practice, as it has typically raised the prices of most of its medicines once per year. Most significantly, Genvoya’s discount to Stribild was restored to 11%. This should help maintain the momentum of TAF’s launch,” adding, “This price gap should help continue Gilead’s momentum in transitioning its HIV franchise to TAF-based regimens with longer patent protection.” Not only do cash flow opportunities entice Nadeau to vouch in favor of buying Gilead shares, but the analyst concludes emphasizing the giant’s trading price boasts a competitive (and discounted) edge when considering other competitors in the biotech arena. (To watch Nadeau’s track record click here.)
TipRanks analytics demonstrate GILD as a Strong Buy. Out of 12 analysts polled by TipRanks in the last 3 months, 10 are bullish on the stock while 2 remain sidelined. With a return potential of 16%, the stock’s consensus target price stands at $82.14.