• GILD - low valuation biotech with a 5% free cash flow yield that will grow to 7% in next 3 years and it is trading at a discount to its earnings growth rate . P/E 2010 13x - G 16%
• Solid BUY in this volatile market with fingers crossed on its pipeline and Tamiflu for upside.
•Atripla and Truvada are currently enjoying expanding growth on its core products which represents 68% of revenues.
Core products in HIV experienced sequential increases in sales from new gov’t testing programs and more doc’s prescribing the drugs for treatment in naive patients.
• TamiFlu sales may see boost from stronger viral activity in next few years.
• To justify significant upside, GILD must realize success in its pipeline for HIV and PAH.