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Gilead Sciences A Solid Investment

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

Summary

A stock long term growth and international exposure.

Price War and Gilead Sciences continuing to grow.

New dividend payouts for investors.

A Stock with Long Term Growth

Gilead Sciences (NASDAQ:GILD) is among the top of biotechnology companies in its industry. With a market capitalization of with 152.4 B. The multi-billion dollar company has managed to maximize their revenue growth by producing drugs to cure chronic illnesses.

The company ability to gain international exposure through marketing their drugs to the European Union will improve their drug sales. Right now the stock proves that it is extremely attractive for its potential upside and long term growth. Helping investors to maximize their returns. The company is expecting 25% of their revenue to come the European Union.

New Dividends for Gilead Sciences Investors

Investors of Gilead Sciences reap the benefits of the new approval for a quarterly dividend payout of 43 cents per share. And the stock is yielding at 1.7%. As a result of the massive amount of revenue and the ability for the company to produce more lifesaving drugs. Giving their investors some income for holding their positions with the biotech giant. With Solvadi driving revenue to 45% of its drug sales.

Price War and Potential Risks

Some people may worry about the price war with major competitor AbbVie (NYSE:ABBV). As Express Scripts (NASDAQ:ESRX) has agreed to supply their customers with AbbVie hepatitis C drug due to the lower cost. The management team is very confident the price war will not have a negative impact on their revenue. The CEO John Martin has strategically diversified the company's drug portfolio to stream in revenue from multiple areas. The patent drugs in this portfolio is the future of this biotech era.

The major risk that are associated with the insurance companies being willing to cover the cost of Gilead Sciences lifesaving drugs. On top of including political pressure into the mix of healthcare issues. The company may have to discount the drugs to fit the needs of the consumer health insurance. The positive side to this is the stock still continues to grow as other drugs come out of phase II and phase III to hit the market. Gilead Sciences is prepared for war and potential risks.

Conclusion

Investors looking for a way to establish long term growth and to make solid investment decision should consider this stock. The company is doing extremely well with increasing revenue and maximizing the returns of its investors. This stock is a major player and possess a lot of potential upside.

Disclosure: The author has no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

The author wrote this article themselves, and it expresses their own opinions. The author is not receiving compensation for it (other than from Seeking Alpha). The author has no business relationship with any company whose stock is mentioned in this article.