actual PE 250 --- easy short
BABA is an accounting fraud. Just a matter of time til it goes the way of Enron, Countrywide, Lehman, etc.
$45 hahahahahahahaahahahaha never again dumbo in a million years unless we have 100% inflation hahahahahahahahahahahahahha
Gilead Sciences: ‘We Remain Positive’ Despite Hepatitis C Decision, Leerink Says
By Ben Levisohn
Yesterday, Gilead Sciences (GILD) came out on the losing end in its hepatitis C patent dispute with Merck (MRK). Wall Street analysts, however, aren’t ready to throw in the towel on the biotech giant just yet. Leerink’s Geoffrey Porges explains why he remains “positive on Gilead”:
Despite the events of today, given Gilead’s comments and a review of Merck’s position, we reiterate our initial position that the ultimate impact on Gilead will be minor…We continue to expect that any damages awarded in this case will be relatively modest, the equivalent of a single-digit royalty, significantly less than the 10% Merck was seeking. In spite of whatever damages the jury awards Merck, Gilead has already indicated that it will appeal. Should both parties agree to settle to avoid continued litigation, Merck will likely need to come down significantly from its initial demand of 10%. Alternatively – as we noted before – should the courts compel Gilead to pay or reserve for this liability, the amount is likely to be equivalent to a low-to-mid-single digit royalty on US sales. Accounting for our recent model updates, every 100 basis points of royalty translates to approximately $0.24/ share, including $171mm in retrospective cash obligations and $167mm in future royalty obligations through the current US patent life of the later to expire (February 2027). Should the court or two parties agree to a 5% royalty, the total cash obligation on prior sales of Sovaldi and Sovaldi-containing combinations would be $854mm ($0.64/share), and the present value of the royalty obligation on US sales of Sovaldi and Sovaldi-containing combinations (weighted for value) would be an estimated $730mm ($0.55/share), a combined value of $1.18/share…
Gilead’s confidence in its position – as well as its historical performance defendin