Gilead Sciences (GILD) | Why Bigger Gains Are Coming

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Gilead Sciences Stock NewsGilead Sciences, Inc. (NASDAQ: GILD)

Gilead Sciences is one of the strongest stocks in biotech, and for good reason. The company is currently the world’s leader in hepatitis C treatments as well as HIV treatments; that’s huge! However, as competitors veer into GILD’s way, they continue to innovate in order to make their treatments better. Most recently, they announced that they are making a small change to the HIV treatments that could yield big bucks!

Small Change To Gild Treatments Could Make A Big Difference

The small change that I mentioned above is that Gilead Sciences is working on swapping medications in their HIV cocktail. The plan is to take out Viread (tenofovir disoproxil fumarate) and replace it with TAF. TAF shares the same structure, but makes a big change. Here’s how it would help

  • Stronger Safety Ratings – The old drug used in the cocktail could cause kidney failure and decrease bone mineral density. However, TAF seems to be different. As a matter of fact, according to lab tests, TAF seems to help the tissues that Viread is know to damage.
  • Lower Dose – While the current Viread in the cocktail requires a 300 milligram dose, TAF requires just a fraction; with dose amounts at 10 milligram.

The Bottom Line

While consumer safety and lower doses are great things, there is another reason for the change. The reality is that Gilead is a company that needs to profit. The reality is that Viread’s patents will start to expire in 2018; opening the doors to competitors. By switching from Viread to TAF cocktails, the patent life of the cocktails is extended; hence giving Gilead a way to keep an upper hand in the industry.

Where GILD Is Headed From Here

As mentioned above, GILD is one of the key players in biotech; and they got there for a reason. This is just another way that the company continues to innovate and stay ahead. With that said, I’m expecting to see more upward price movement in both the short term and long term outlooks.

What Do You Think?

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

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