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Should You Invest in Gilead Sciences, Inc. Today?

Shares of biopharma giant Gilead Sciences  (NASDAQ: GILD  )  were up today after it announced a strong quarter, which included revenue doubling to $5 billion and earnings per share tripling from $0.43 to $1.33.

Most of the company's strength this quarter came from its hepatitis C drug Sovaldi. Sales of the drug hit $2.3 billion this quarter, which was incredible considering it was the first full quarter the drug was on the market. It also didn't hurt that sales of Stribild, Gilead's HIV pill, were up 134% year-over-year.

So should investors get in on the action? On today's Stock of the Day, Motley Fool analyst Michael Douglass says Gilead is worth watching, but it's important to be aware of the risks. One of his concerns is payer pushback, a very real threat to Gilead's hit drug Sovaldi considering that a 12-week treatment costs $84,000. Another thing Michael is keeping his eyes on is the competition--AbbVie and Enanta Pharmaceuticals both have products that should hit the market soon, while Bristol-Myers Squibb and Merck both have some competing products in their pipelines as well. 

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Read/Post Comments (3) | Recommend This Article (4)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On April 23, 2014, at 8:18 PM, Nala wrote:

    The entire article and video clip focuses around the same short sighted and narrowly focused $1k a pill garbage. When put up against the life saving benefits, the cost of liver transplants, the improved quality of life, this is not even an issue.

    Competition is not until next year. Present efficacies from other drugs are more costly and inferior.

    Gilead has a CURE for a deadly disease and the media will not stop harping. Please move on.

  • Report this Comment On April 23, 2014, at 11:55 PM, santoshps wrote:

    Very short sighted article....this guy is still on the old bandwagon of the 84K cost thing.

    NONE of the other drugs match up to Sovaldi.

    this is an intentional panic creation article

  • Report this Comment On April 24, 2014, at 5:06 AM, Svenquist wrote:

    I think this article represents a problem for Motley Fool as a company!

    Motley Fool articles, like this, usually lack profound fundamental insights!

    Compare the reasoning in this article with the following:

    Lets say that Tiger Woods is 20 below par after 36 holes in a golf tournament.

    Motley Fool comment: Well, Tiger played the first 36 greatly, but what will happen during the next 36 out...he has competitors!

    Does not make any sense, wright!

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DocumentId: 2926776, ~/Articles/ArticleHandler.aspx, 9/3/2015 11:24:29 AM

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9/3/2015 10:54 AM
GILD $103.73 Down -0.54 -0.52%
Gilead Sciences CAPS Rating: *****