Cowen Shares Key Insights on Gilead Sciences, Inc. (GILD) Following Management Meetings

Gilead is very confident on the successful commercial launch of Axi-Cel.

Top analyst Phil Nadeau of Cowen is sharing key insights on Gilead Sciences, Inc. (NASDAQ:GILD) after organizing meetings between investors and senior management in Boston last week.

Notably, the company’s COO, CFO the SCO were among a number of top management officials in attendance to field investors questions, especially surrounding the pending acquisition of Kite and its CAR-T platform Axi-Cel. Along with management’s enthusiasm on the potential for Axi-Cel to successfully penetrate the hematologic malignancies market of 200,000 patients in the U.S. and Europe by 2022, the company is additionally confident on its ability to expand Kite’s platform with other technologies moving forward.

Gilead further believes that the application of T cell therapy could extend beyond treating hematologic malignancies. Nadeau notes, “Gilead is also hopeful that, over the very long term, T cell therapies against solid tumors could also prove viable.” While Gilead notes that “appropriate antigens are particularly difficult to find and there is certainly risk to their development, there is enough solid science supporting the concept that it has a reasonable chance of succeeding.” Moreover, the company will eventually look to expand to tackling diseases, such as nonalcoholic steatohepatitis (NASH) and the currently incurable human immunodeficiency virus (HIV) “and therefore could acquire attractive technologies,” opines the analyst.

However, perhaps one of the more important metrics for GILD shareholders and potential investors at the moment is ensuring the commercial viability of Axi-Cel. Nadeau believes that “Gilead has been impressed by Kite’s commercial team, and expects Axi-Cel to have a successful commercial launch,” and further reports “that Gilead has “conducted months of due diligence on Kite’s commercial preparations, and it believes the team is ready today. Kite has 10 centers that it has accredited to prescribe Axi-Cel as soon as it is available, and has an additional 15 that will soon be fully prepared.” Underscoring management’s confidence on Axi-cel’s long-term success, even as the CAR-T field thickens with competitors, the analyst remarks: “While Gilead expects other CD19 CAR-T therapies will eventually be launched to compete with Axi-Cel in aNHL, it expects Axi-Cel to remain the market leading therapy.”

As such, Nadeau maintains an Outperform rating on GILD with a price target of $90.00 representing a close to 7% rise over current trading levels.

Phil Nadeau has a good TipRanks score with a 60% success rate and a high ranking of #140 out of 4,633 analysts. Nadeau realizes 16.0% in his annual returns. When recommending GILD, the analyst posts gains of 2.0%. 

Tipranks analytics reveal GILD as a Strong Buy. Out of 15 analysts polled by TipRanks (in the past 3 months), 10 are bullish, while 5 are sidelined on Gilead stock. The stock’s consensus price target stands at $86.69.

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