Jason McCarthy’s Take on Gilead Sciences, Inc. (GILD) Following ASH Data

ASH data offers insight into Gilead Sciences' lymphoma drug Yescarta; Maxim's Jason McCarth weighs in.


The annual meeting for the American Society of Hematology (ASH) has come to an end. Running from Dec. 9 through Dec. 12 in Atlanta, ASH is always a key meeting for many of the companies involved in hematological cancers and hemoglobinopathies.

Today, Maxim analyst Jason McCarthy was out with a research note on Gilead Sciences, Inc. (NASDAQ:GILD), after its Kite cell therapy subsidiary announced long-term followup data for Yescarta from the ZUMA-1 pivotal study in refractory large B cell lymphoma. The data, which were presented at the ongoing American Society of Hematology (ASH) meeting, demonstrated that complete remissions (CR) of 40% were maintained for over one year (median followup of 15.4 months).

McCarthy commented, “Yescarta for late stage B cell lymphoma is just the beginning for Gilead. Expansion to late stage leukemia, earlier lines of therapy, combination approaches and new CARs and TCRs targeting myeloma and solid tumors (Kite’s pipeline) should follow as Gilead is now a leader in the cell therapy space.”

“The launch of Yescarta is underway in the U.S., approval/launch is expected in Europe in 2018 and we expect both China and Japan to follow as CAR-T cell therapy integrates into the oncology treatment paradigm on a global scale,” the analyst added.

As such, McCarthy reiterated a Buy rating on Gilead Sciences shares with a price target of $94, which represents a potential upside of 24% from where the stock is currently trading. (To watch McCarthy’s track record, click here)

The word on the Street rings largely bullish on this biotech giant, backing McCarthy’s confident move, with TipRanks analytics demonstrating GILD as a Buy. Out of 14 analysts polled in the last 3 months, 9 are bullish on Gilead stock, while 5 remain sidelined. With a return potential of nearly 16%, the stock’s consensus target price stands at $88.22.

 

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