Barclays analyst urges Gilead to take action before numbers erode further; shares slip 1%

Mar. 10, 2017 3:40 PM ETGilead Sciences, Inc. (GILD)GILD, INCYBy: Douglas W. House, SA News Editor128 Comments
  • Barclays senior analyst Geoff Meacham has apparently lost his patience with Gilead Sciences (GILD -0.9%). In an open letter to management, he urges the company to make an acquisition or possibly restructure if the numbers deteriorate further.
  • Mr. Meacham's "reach-out" is one of many that company has received over the past year or more as its numbers have eroded as its hepatitis C franchise ages. Sales and profit growth, for example have decelerated in each of the past five quarters.
  • He says orphan drugs fit well with Gilead's cost structure adding that diversifying beyond antivirals would be "well-received" by investors.
  • Even if it avoids an acquisition, Mr. Meacham believes in-licensing deals are always a viable option to beef up the pipeline.
  • In short, Gilead needs to DO SOMETHING.
  • Update: Incyte (INCY +5.2%) perks up on the news that Gilead is about to make a formal bid. Source: StreetInsider
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