Leerink's Porges says Incyte good target for Gilead

|About: Gilead Sciences, Inc. (GILD)|By:, SA News Editor

Apparently with a bit of time on his hands, Leerink's Geoffrey Porges ponders attractive takeover candidates for Gilead Sciences (GILD +0.3%), considering its declining growth and $10B cash hoard.

A while back, he speculated that Vertex Pharmaceuticals would be a good target, but nothing came of it. Now, he says it should take out Incyte (INCY +0.9%), citing its attractive pipeline and potential synergies with Gilead's existing roster of products. He adds that, assuming a reasonable acquisition premium, a deal would dilute earnings through next year but would be accretive thereafter. He claims that long-term earnings synergies could be 20% or higher.