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Jefferies Says Too Early To Judge The Impact Of AbbVi Competition On Gilead (GILD)

|Includes: ABBV, ESRX, Gilead Sciences, Inc. (GILD)

Jefferies Says Too Early to Judge the Impact of AbbVi Competition on Gilead (GILD)

Jefferies analyst Thomas Wei reiterated a Hold rating on Gilead Sciences (NASDAQ: GILD) while bumping his price target to $84.00 (from $82.00) following news yesterday that Express Scripts (NASDAQ: ESRX) said they will only cover AbbVie (NYSE: ABBV) HCV therapy, Viekira Pak - which sent shares of GILD down 14.3%.

Wei said it is still too early to judge the impact of AbbVie competition for Gilead.

"Express Scripts' decision to exclusively offer its genotype 1 HCV infected patients ABBV's Viekira Pak was in line with our expectations after a year of outspoken anti-GILD protests from ESRX management," Wei commented. "Nonetheless, the stock reaction suggests investors see heightened risk of price and market share competition than previously expected, but whether other payors covering the other 95% of U.S. HCV patients will follow suit is uncertain."

The firm bumped FY 2014 EPS from $8.07 to $8.08 and lowered FY 2015 EPS from $9.92 to $9.30.

Disclosure: The author is long GILD.