Gilead Sciences (GILD) Stock: Is Now The Time To Get In?

Gilead Sciences, Inc. (NASDAQ: GILD)

Gilead Sciences went through a bit of a roller coaster ride in 2015. However, 2016 looks like it’s going to pan out to be a very good year for the stock. After recent downtrends, GILD is trading at an incredible discount. Additionally, yesterday the company reported positive news with regard to its hepatitis B drug candidate. Today, we’ll talk about the news with regard to the hepatitis B candidate as well as other reasons that I believe that GILD is currently primed for picking!

Gilead Sciences Releases Positive Hepatitis B Data

On Tuesday, Gilead Sciences reported the results of two Phase 3 trials focused on a once-daily drug known as tenofovir alafenamide. Both of which proved to be overwhelmingly positive. In the studies, GILD proved that tenofovir alafenamide demonstrates better renal and bone safety than Viread, the company’s currently approved drug for treating this condition. As a result of the positive news, Gilead is planning its next step, which is to seek regulatory approval in both the United States and Europe. The company is expected to submit New Drug Applications to regulatory agencies in these regions during the first quarter of fiscal 2016. Considering that the new drug, tenofovir alafenamide, has been proven to be better than the currently approved drug, Viread, GILD should have no problem getting the new treatment approved.

Other Reasons That GILD Is A Strong Investment At The Moment

While the hepatitis B studies proved to be a hit, they are not the only reasons that investors should be excited about Gilead Sciences. In fact, there are several reasons for investors to get involved in this stock. To name a few:

  • New Hepatitis C Treatment – Gilead Sciences has been working on a new hepatitis C combination drug that’s likely to be better than anything out there, including the company’s own Harvoni. Recently, GILD announced that the United States Food and Drug Administration has granted the combination treatment a priority review. As a result, the FDA is hoping to announce whether or not the new treatment will be approved by June 28th.
  • Current Standing In The Hepatitis C Market – One of the reasons that Gilead Sciences had a bit of a rough year last year was due to the competition the company was facing in the hepatitis C market. Early in the year, AbbVie was approved for its own hepatitis C drug that came with a lower cost. However, AbbVie’s drug also came with horrible side effects and included a component that was known to be dangerous. As a result, GILD held its position as the leader in the treatment of the ailment.
  • GILD Is Trading At A Big Discount – Because of the recent downward movement we’ve seen on GILD, the stock is now trading at an incredible discount. In the biotechnology market, stocks are generally considered healthy when they trade at rates that are around 16 or 17 times earnings. However, Gilead is trading at a far better rate. In fact, investors can pick this stock up for less than 10 times earnings! This is an incredible discount for those that want to get in on the gains Gilead is likely to generate.

The Bottom Line

The bottom line here is that Gilead is an incredible company that’s known for meaningful innovation in the biotechnology space. The company has maintained control in the hepatitis C market, even though few thought they could. Now GILD is pushing two new treatments to the FDA and European health authorities for approval, which will likely lead to profits in the long run. With the stock trading at such an incredible discount, it’s hard to find a reason not to invest!

What Do You Think?

Where do you think GILD is headed moving forward and why? Let us know your opinion in the comments below!

[Image Courtesy of Flickr]

Never Miss The News Again

Do you want real-time, actionable news delivered to your inbox? Join the CNA Finance mailing list below!

Subscribe Today!
* indicates required

Add Comment