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Opinions Gordon Reid
Gilead Sciences Inc.GILDSELLDec 17, 2014
Stock price when the opinion was issued
As of Jun 17, 2026. Market Open.
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It's a biopharma which as a group did very well last year. Compare that to the smaller biotechs which have not done well the past 3 years. This year, biopharma and staples have underperformed. This boasts a high free cash flow yield and has a great product cycle coming.
In past years, biotech was the safe trade, but this year risk is back, so these stocks have fallen out of favour. Also, there are so many drugs in trials now and big pharma needs new product. She's looking at Gilead and Moderna, because they have low PEs and alot of drugs in development. However, the overall sector is risky.
Has long owned this, because it's a value stock and keeps raising its dividend.
Brian Belski
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He has concerns. This company is often recommended, but he feels the stock price has been largely built on Solvaldi, a hepatitis C drug, which has been incredibly successful, but they have built their financial fortune on the fact that they sell it for $1000 a day in the US. There are competing products coming to market. One is through AbbVie (ABBV-N) and one through Merck (MRK-N). He fears the competitive landscape will change and, although Solvaldi will continue to be an effective drug, it will not get anywhere near the $1000 a day, which will be a big financial headache for the company. If you own, he would recommend that you take profits.