Gilead Sciences (GILD): Why Splitting GILD Is A Bad Idea - Piper Jaffray
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Piper Jaffray analyst, Joshua Schimmer, reiterated his Overweight rating on shares of Gilead Sciences (NASDAQ: GILD) along with his price target of $108 while shedding light on the myth that breaking up GILD is a good idea.
The analyst believes that breaking up GILD into its HIV and HCV franchises could reduce the hyper-focus on HCV which is distracting the company from a materially undervalued and robust HIV business (that includes bictegravir/Descovy). The analyst thinks splitting up the company is a poor idea and the probability of this occurring is negligible.
Separating HIV and HCV will require replication of sales forces, commercial infrastructure, administrative efforts and virology R&D. It would also have to address tax considerations and ex-US cash.
Shares of Gilead Sciences closed at $80.59 yesterday.
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