The article from StreetInsider does not speak about Sovaldi, and the $115 is only justified by next-gen HIV pill, with Phase II on tap next month.
It should be interesting to find the RBC Capital, M.Yee article or writing on the subject to see the importance he sees between HIV and HCV pipelines, but in any case this HIV pipeline positive information is another strong point regarding GILD fundamentals.
Here is the M. Yee writing:
"Extended TAF (son-of-Viread) Phase II data coming up at ICAAC in Sept and Phase III data on track to read-out in next month. We predict TAF results to be solid and increase investor comfort in the sustainability of GILD's HIV tail. Thus, we increase our price target to $115/share based on 13.5x (from 12x) on our 2015E EPS," said Yee
"TAF is a more potent pro-drug of Viread and has similar efficacy but less long-term kidney damage and bone mineral density loss (BMD). Also, it's much smaller size makes it amenable to "co-formulate" with protease inhibitors so Truvada can be combined with Prezista (JNJ) and make what is a 2-pill regimen now into a 1-pill simple regimen. We are confident over the long run, most developed nations won't be "splitting up pills" and ruining compliance so we model a -20% erosion post 2019, versus consensus which is -25% to -50% erosion expectation after Viread generic launches in 2018," he added.