Gilead Sciences: renewed growth story after years of stagnation
Company shares Gilead Sciences $GILD have risen by 44 %indicating a significant turnaround after years of stagnation. This growth trend is supported by new opportunities in innovative drugs and potential entry into the obesity market.
Key growth drivers for $GILD
1. Innovative medicines
- Lenacapavir: A promising HIV prevention treatment that could generate sales of up to USD 10 billion. Launch expected in mid-2025.
- TrodelvyThis year's estimated sales of a breast cancer drug $1.3 billionand is expected to reach 2 billion USD.
2. Obesity research
- GS-4571: A potential breakthrough treatment for obesity that could open a market with value up to $100 billion.
3. Growth margins and cost efficiency
- Analysts expect profit margins to improve due to revenue growth and a more efficient cost structure, which should contribute to further growth earnings per share (EPS).
Valuation and future outlook
- The stock is trading at 12 times expected earnings, which is below its all-time high but still an attractive level for investors.
- Analyst Michael Yee predicts that a strong launch of Lenacapavir could push the stock to 100-105 USD.
Conclusion
Gilead Sciences $GILD is emerging from a period of stagnation and offers significant upside potential thanks to new drugs and strategic investments. For investors, the current valuation is an opportunity to benefit from potential future growth in HIV, oncology and obesity.
Interesting company, however I was probably most intrigued by $NVO.
Looks pretty interesting, but here it's probably fine or necessary to buy at the bottom and then sell as this stock moves up and down over the long term.