In a research report sent to investors today, Needham analyst Alan Carr reiterated a Buy rating on Gilead Sciences (NASDAQ:GILD) with a price target of $120, following the company’s fourth quarter results, which were released yesterday after the market closed.
Carr observed, “WW 4Q14 Sovaldi sales were $1.73B, compared to our $1.90B estimate. Ex-U.S. sales were lower than we expected. Mgmt guided for step up in growth in EU in 2015 given recent completion of Sovaldi price negotiations in key countries. Harvoni was launched in Oct 2014 in the U.S. and generated $2.11B in WW sales, compared to our $1.28B estimate. Gilead reported $7.22B in total product sales, above our $6.15B estimate. Mgmt issued guidance for $26-27B in 2015 product sales, slightly under our and consensus expectations. Recent pressure from payers around HCV drug costs has had an impact and mgmt guided for Sovaldi/Harvoni gross-net margin growing from 22% at YE14 to 46% in 2015.”
Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines for the treatment of life threatening diseases in North America, South America, Europe, and the Asia-Pacific.