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Portland, Oregon
Market Wizard
Experience: Intermediate
Platform: F-16CM-40
Trading: GBU-39
Posts: 6,190 since Sep 2013
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Summary
- The political flack over Gilead's HVC pricing continues.
- Pricing concerns are overblown.
- As a best in class market leader, Gilead will dominate and shares will eclipse $150 within 12 months.
The other day I was rifling through the comments on one of my previous articles on Gilead Sciences (NASDAQ:GILD), and a commenter requested an article about the politics surrounding Gilead's pricing of its Hep C drugs Sovaldi, and more recently, Harvoni. So, I began going through various articles, news reports and company statements focused on the uproar on pricing. I came to the conclusion that no article could discuss the politics of this issue without also addressing pricing and profits. I posit that these three "Ps" are the only thing holding back Gilead's price at this point. One only has to look at the company's fundamentals, exponential growth in sales and profits, and robust pipeline to understand that the company is grossly undervalued. I believe once pricing concerns subside and the market sees just how many patients Sovaldi/Harvoni are curing, the stock will take off.
Gilead Sciences: Pricing, Politics And Profits - Gilead Sciences, Inc. (NASDAQ:GILD) | Seeking Alpha
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