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Deutsche Bank Would Buy Gilead Sciences (GILD) on Weakness

February 17, 2012 7:40 AM EST
GILD Hot Sheet
Rating Summary:
    12 Buy, 7 Hold, 0 Sell

Rating Trend: = Flat

Today's Overall Ratings:
    Up: 16 | Down: 9 | New: 35
Deutsche Bank said they would buy Gilead Sciences (NASDAQ: GILD) on this morning's weakness related to disappointing GS-7977 data.

The firm said the fair value of GILD under "disasters" scenarios is: 1. Only in GT2-6 No GT1: GILD $40-$44 - "This assumes the Base Biz $35.5-39 + $5 Hep-C. Range in HIV base biz assumes 20-35% new patient share for QUAD." 2. Low 15% overall share with 7977 in Gt1: GILD $48-$52 - "60% share in GT2-6 (assuming ~30% GT-1 are treatmetn naives): (Base biz $35.5- 39 + $13 Hep-C)."

However, Deutsche Bank said a "disasters" scenario is not likely, citing:
(1) THIS IS NULL DATA- Navies are likely to look better. Likely GILD can take
more than 15% market share.

(2) GILD has an arsenal of OTHER DAAs they can combine to get a combo
that can take 60% share. They likely can move that into clinic this summer
in phase 2..and still be on track for phase 3 early 2013.

(3) ALL THESE ASSUME LOW HIV- there is still potentially $10/share of
UPSDIE IN HIV in 2012 is possible.

The firm maintained their Buy rating and price target of $66 on GILD.

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences are down 19% to $44.11.


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