Gilead Sciences, Inc. (GILD): This Biotech Leader Is Poised to Outperform

Page 1 of 2

Investing in biotech companies can be risky; developing new drugs is a long, expensive, and uncertain process, and there is always considerable regulatory risk in the industry. When it comes to Gilead Sciences, Inc. (NASDAQ:GILD), however, its dominant position in HIV treatment and the company’s growth prospects make it look like a long term winner.

Leadership

Gilead Sciences, Inc. (NASDAQ:GILD)

Gilead Sciences, Inc. (NASDAQ:GILD) is the undisputed leader in HIV treatments; the company makes more than 75% of its revenue from different drugs to fight the disease. Viread, Emtriva, and combo drug Truvada have been the key growth drivers for Gilead over the last years, but the all-in-one triple combination pill, Atripla, has been the most recent winner, and it now generates more than 30% of the company´s revenues.

Atripla combines Gilead Sciences, Inc. (NASDAQ:GILD)´s Truvada with Bristol Myers Squibb Co. (NYSE:BMY)’s Sustiva, and it’s the first pill approved by the FDA as a one single pill for HIV treatment. By providing a much simpler treatment, Atripla has material positive effects on patient compliance, which is a key factor when it comes to effectiveness in treatments. Besides, it makes the treatment more affordable.

Truvada, which has traditionally been used for HIV treatment, recently received approval from the FDA to be used as the first HIV prevention drug. This has raised some controversy among experts, but it has the potential to be a real game changer. The drug is approved for uninfected people who are at high risk of contracting HIV thorough sex, these include sex workers and people with partners who are HIV-positive or engage in high-risk behaviors, such as using IV drugs.

In the middle term, Stribilid is showing promising potential. This all-Gilead regimen containing a new integrase inhibitor entered the market in 2012, and it could lead Gilead Sciences, Inc. (NASDAQ:GILD) into the next phase of growth in HIV treatment. Stribilid will be facing strong competition from Merck & Co., Inc. (NYSE:MRK)´s well established drug Isentress which generated sales of 1.5 billion for the company in 2012, an increase of 11% versus 2011.

Although Merck has the leadership position in this segment, Gilead´s competitive strength in HIV treatment should not be underestimated, especially considering that Stribilid is off to an auspicating start.

Growth prospects

Speaking at the UBS Global Healthcare Conference in May of this year, Gilead´s management said that the company currently has the biggest amount of products in Phase 3 studies in its history. Not only when it comes to HIV treatment, but also for cardiovascular, respiratory, and oncology diseases, Gilead Sciences, Inc. (NASDAQ:GILD) has a promising pipeline.

Source Gilead investor fact sheet

One particularly exciting opportunity for the company is hepatitis-C treatment, and Gilead´s sofosbuvir drug has some very real chances at becoming a blockbuster in a gigantic market.

According to the company, the global prevalence of hepatitis-C virus is estimated to be 160 million people across all continents. Focusing specifically on the major markets: EU, U.S., Canada, Australia, Japan and Brazil, Gilead Sciences, Inc. (NASDAQ:GILD) estimates that there’s a prevalence about 12.6 million patients around the world, of which only about 36% are currently diagnosed and 4% currently in treatment.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

The 10 Most Expensive Boarding Schools In the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!