Deutsche Bank Maintains Buy On Gilead Sciences Following Release Of Top Line Data For Stribild-TAF


In a research note released today, Deutsche Bank analyst Robyn Karnauskas maintained a Buy rating on Gilead Sciences (NADAQ:GILD) with a $142 price target, following the company’s release of positive top line data for Stribild- TAF from two phase 3 studies against Stribild.

Karnauskas wrote, “The study met its primary objective of non-inferiority as HIV RNA suppression was similar in both treatment arms in both studies. More importantly, these studies could differentiate TAF vs. Viread on bone and renal safety with stat sig differences.” The analyst continued, “Stribild TAF replaces viread with TAF in the single pill Integrase inhibitor regime. These data are in-line with expectations and previous phase 2 studies. As we highlighted before, TAF is important part of sustainability of the HIV franchise as TAF increases the patent life of HIV franchise beyond the ~2021 patent expiry of Viread (street was concerned about that). GILD is expected to file in 4Q’15.”

Karnauskas added, “GILD is conducting a study in renal impaired patients (N=245) and this open label study is expected to read out in 1Q’15. We expect this study to help characterize the benefit of TAF in this subpopulation which cannot take Viread containing regime due to renal issues. This study is recruiting patients with GFR 30-69mL/min (normal 90 mL/min). In speaking to mgmt, we believe that they are confident that this study will work & be supportive of data we saw today. In addition, GILD is also doing switching studies which could help doctors switching patients from current PI and Integrase inhibitor based treatments to Stribild-TAF. The co expects these data to be part of the final Stribild-TAF label.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Robyn Karnauskas has a total average return of 11.4% and a 69% success rate. Karnauskas has an 52.4% average return when recommending GILD, and is ranked #244 out of 3319 analysts.

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