I find it interesting/puzzling that Gilead is up today (so far) considering the 2018 budget proposal is going to be released momentarily (which will include significant reductions in Medicaid spending) and the budget assessment related to the Obamacare replacement plan will be released in this week. It's my understanding both proposals will have a negative impact on Gilead's revenue.
GILD is now back again with it's normal trend which is to go down and to take back it's gain on the past 2 days in order to pacify the worried shareholders who are clamoring for milligan and BOD to move and act now for a M&A. GILD lacks a momentum for an immediate catalysts to help move it's stock price up until there is an action on the part of milligan and BOD and the stock price will be cruising along towards it's 52 week low range for the meantime
Ford replaced its CEO today. I wish the news was for GILD instead. May the BOD get a clue from Ford to see it is okay to fire a CEO who doesn't deliver shareholder results.
I think it would be beneficial to revisit the risks I've raised. I'll list the risks then the status: Risk 1) My guess is Obamacare will eventually be replaced and the replacement will negatively impact Gilead's revenue. Status 1) When I originally posted this comment many questioned the likelihood this would pass the House of Representatives. Low and behold, it did pass the House and now it moves to the senate. Risk 2) Legislators will give Medicare the authority to negotiate drug prices which would be another negative against revenue. Status 2) The House of Representatives did not include this in their proposal. That said, I suspect the senate may add the Medicare proposal to the bill they are currently crafting Risk 3) The loss of the TDF patent will negatively impact HIV sales despite the better safety profile of TAF. Status 3) At the recent BOA/ Merrill Lynch healthcare conference Kevin Young indicated the loss of the TDF patent would negatively impact HIV sales once generics are introduced into the market. Risk 4) I suspect Idenix/Merck will prevail in the patent litigation case and Gilead will be forced to pay a huge award. Status 4) Let me remind everyone that the jury's quick verdict in late 2016 against Gilead was supported by the straight forward memorandum order issued by the United States district judge Leonard P. Stark who presided over the case. In addition, Gilead has mentioned in their SEC filings that they will continue to argue the same points already presented to the courts. Based on the current circumstances, one would logically assume the verdict will remain unchanged and Gilead will be forced to pay $2.4 billion. In addition, the judge has the authority to triple the size of the penalty given the circumstances of the case. In closing, based on the aforementioned risks I think it would be prudent for investors to focus on sectors that fit into the current economic trends and avoid this risky stock.
There was a time when I really understood Gilead's growth strategy and general direction, but even hearing everything about "cure vs. treat", "HIV reduction", pipeline issues, etc. etc., I remain lost on what the actual turnaround approach is. Wish minimally I could see the bottom. Trying to still believe in GILD but getting ready to throw in the towel. Any new or novel insights are appreciated. Please do not repeat all that which has been said over the past 12 mo. Anything truly new would be helpful, as other companies seem to be holding their heads up just fine.
Goldman just put out its VIP list of the top new stocks hedge funds picked up and Gilead is a new name on the list. Four times a year, hedge funds file their long positions with the SEC, and the information is released to the public 45 days after each quarter ends.
Gillead is in the top 13 out of 50 stocks
Folks, look at 'CALL' volumes at strike prices 66 $ and 69 $ vs Open Interest (June 16th). Institutions are buying these CALLs !!! Not the ordinary investors. They should know something.....that others don't
GILD has to make a bold but sure acquisition to become a dominant force in pharma market of one major disease category as it did in HCV or HIV. IDO inhibitor in INCY proves not so strong and many other RTK inhibitors look like no way to meet the requirement of revenue generation simply because of too competitors around. NASH competitors are not so mature to make close call. Only sure thing is PARP inhibitor drugs left to consider. Medivation PARP drug is not a good competitor among its counterparts due to lack of potency and narrow spectrum of anti cancer efficacy. ANZ drug is fairly potent but seems to have too many side effects. So far the best two of potent PARP inhibitor drugs are one of Tesaro and one of Clovis, both approved by FDA for ovarian cancers. But there are a lot of solid preclinic and clinic evidence that these two drugs can equivalently treat other solid tumors and leukemia. Basic research and clinic research strongly point out that PARP may be essential key for all cancers to pivotal Tesaro market value is only 7bln and Clovis is 2.6bln, It would cost only about 20 bln for GILD to double down for each of them. GILD can use the rest of cash reservoir to fund the clinical trials on leukemia, pancreas, lung, colon, prostate and stomach cancers, each of which could generate 1-2 bln revenue.
BTW, Abbvie's PARP inhibitor is 100, even 1000 fold less potent than those of Clovis and Tesaro, and recently has already failed in its crucial clinical trial.
Dump the CEO and BOD! They are worthless.
The lack of communication to the street shows the inexperience of the leadership team. If they were looking at any acquisitions there would be rumors by now. I don't think they are serious at doing anything other than staying in their comfort zone.
somebody please buy GILD. so we can see a 20 point jump.
Could set a record today, up 2 days in a row! What are the odds?
How's it going today here in jim's diary?
The CBO score on the house healthcare bill is due to be released. Remember, the senate has the opportunity to modify the bill. That said, they could add the ability to negotiate Medicare drug prices. If added, I'm assuming the bill would easily meet the CBO requirements. Time will tell.
I concur completely!! Looks like they're getting rid of Fields after a 40 % decline over 3 years, GILD is down 40% over two years. I still can't believe, we the stockholders, gave (G)illigan a vote of confidence 10 May; unbelievable. Not sure if there's any GILD investor relations trolls monitoring chat boards, but if yes, please fire the CEO!!!! Please have the guts the shareholders lacked and get rid of the guy. He may be a great scientist, but he's a lousy leader.
Management still sitting on their hands. Giving themselves a thumbs up, so they are the only ones smiling. Shareholders continue to suffer from paralysis of management which cannot make decisions. Time to give these guys the boot and drive their thumbs up into their throats.
I haven't seen any positive news released. That said, is it possible the current change in price is caused by investors covering/closing positions?
Can the CEO enter another earnings season without a big time acquisition???
This stock has been over sold. Any rumors or purchase by GILD should send this stock up. GILD needs to be active, time for some M&A. GILD has been beaten up over and over, all It takes is 1 good trial, even if revenues were flat this stock would jump back to the hundreds.
GILD needs speedier decisions and hard actions, Milligan and BOD lacks these traits and had under performed with their duties which is evident on stock price of GILD which is closer to it's 52 week low. FORD is setting a good example with it's CEO being replaced because their stock had been harboring on the low range. Perhaps these maybe a wake call for GILD to follow and it is now time for Milligan and BOD not to make and keep on promising for M&A because they have lost so much time and opportunities, it is now high time to act and make bold moves for a M&A .