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Is Gilead Sciences, Inc. (GILD) Still A Buy?

ViiV competes against Gilead with Combivir, but the drug went off patent in the U.S. last year.However, the FDA granted priority review status to ViiV’s integrase inhibitor dolutegravir in February. Clinical studies found that dolutegravir combined with another ViiV drug performed better than Atripla.

Dolutegravir could launch by the fourth quarter of this year. It might impact sales of Stribild, but I still think Gilead will do well. One reason behind this thinking is that Gilead split profits with Bristol-Myers on Atripla but won’t have to with Stribild since the components of the combo drug are all owned by Gilead Sciences, Inc. (NASDAQ:GILD).

The hepatitis C market presents a significant opportunity for Gilead’s growth. AbbVie Inc (NYSE:ABBV) seemed to be in the lead for the market last fall after the release of study results showing that its four-drug regimen achieved a 99% cure rate for hep C patients after 12 weeks. That lead didn’t last very long, though.

A couple of weeks ago, Gilead struck back with its own study results. These results found patients in one arm of the study were completely cleared of hep C after only eight weeks of taking the company’s drug combo. Even better, Gilead’s regimen included three drugs at most compared to AbbVie’s four-drug combo.

Should investors buy stock in Gilead after the $0.48 per share versus $0.50 per share earnings miss? Here’s my two cents: Yes.

The article Should You Buy Stock in Gilead After the Earnings Miss? originally appeared on Fool.com and is written by Keith Speights.

Fool contributor Keith Speights has no position in any stocks mentioned. The Motley Fool recommends Gilead Sciences.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

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