Seen in Barron's Blog today:
Earlier this week, we had the opportunity to host John Milligan, President and incoming CEO of Gilead, for a group dinner and other investor meetings. Topics of discussion were wide-ranging, and included corporate development, commercial, and pipeline… [We] walked away from the meetings seeing a re-energized Gilead that acknowledges investor concerns and wants to tackle challenges head-on.
The most important takeaways, in our view: *HCV can grow in 2016, contrary to current expectations; *China is a big opportunity for SOF/VEL (2017e launch)...
If Dr. Milligan's comments on SOF/VEL (the new pan-genotypic combo awaiting FDA approval with a PDUFA date in June) are being represented fairly, a "big opportunity" given Gilead's large size would have to imply decent pricing.
Based on this, I have begun to reaccumulate GILD. Interest rates on high quality debt have moved a lot lower (I have a draft article exploring this unfortunate event), and healthcare is as far away from the fundamental issues that I see driving interest rates so low as I can get within equities while retaining the spirit of equities, i.e. growth and innovation.
Disclosure: I am/we are long GILD.
Additional disclosure: Not investment advice. I am not an investment adviser.