Citi Raises Gilead (GILD) Price Target Ahead of Q1 Biopharma Preview

Gilead Sciences, Inc. (NASDAQ:GILD) is included among the 10 Healthcare Stocks with Highest Dividends.

Citi Raises Gilead (GILD) Price Target Ahead of Q1 Biopharma Preview

On April 13, Citi analyst Geoff Meacham lifted the firm’s price recommendation on Gilead Sciences, Inc. (NASDAQ:GILD) to $165 from $156. It reiterated a Buy rating on the shares. The update came as part of a broader Q1 preview in the biopharma space.

On April 7, Reuters reported that Gilead said it would acquire Germany-based Tubulis GmbH for up to $5 billion, as it looks to strengthen its cancer drugs pipeline. The move adds to Gilead’s recent deal activity. The company has been pushing beyond its core areas as it faces patent expiries and weaker sales from its COVID-19 treatment.

With this acquisition, Gilead gains access to Tubulis’ experimental drugs. These are part of a class known as antibody-drug conjugates, or ADCs, often described as “guided missiles” because they deliver chemotherapy directly to cancer cells while limiting damage to healthy tissue. Gilead will acquire all outstanding equity of Tubulis for $3.15 billion in upfront cash, payable at closing, along with up to $1.85 billion in milestone payments.

The two companies have worked together before through licensing agreements focused on ADC development. Tubulis also has a partnership with Bristol-Myers Squibb. Once the deal closes, which is expected in the second quarter, Tubulis will operate as an ADC research organization within Gilead.

Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company focused on developing treatments for life-threatening diseases. Its work spans HIV, viral hepatitis, COVID-19, cancer, and inflammation.

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