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Gilead Sciences (GILD): Investors Are Undervaluing The Pipeline - Leerink

June 29, 2016 7:17 AM EDT
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Price: $73.25 +0.33%

Rating Summary:
    24 Buy, 16 Hold, 2 Sell

Rating Trend: Down Down

Today's Overall Ratings:
    Up: 13 | Down: 11 | New: 11
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Leerink Partners analyst, Geoffrey Porges, noted that his positive view on Gilead Sciences (NASDAQ: GILD) includes the optionality of its pipeline (an aspect of the company generally overlooked by investors) in addition to its dominant HIV and HCV franchises. This pipeline includes GS-5745, an anti-MMP9 (matrix metalloproteinase 9) antibody, currently in development for a wide-range of indications, including gastric cancer (GC), ulcerative colitis (UC), cystic fibrosis (CF), Crohn’s Disease (CD), chronic obstructive pulmonary disease (COPD), and rheumatoid arthritis (RA). Inhibitors of the MMP class have had a poor history, with nearly 50 different molecules failing in development. Investors could be forgiven for being circumspect about the potential of GS-5745. Following the presentation of intriguing phase I data in gastric cancer at 2016’s ASCO, along with the recent publication of favorable phase I UC data, he has reviewed the potential of GS-5745 with four MEDACorp specialists with long experience in the discovery and development of MMP inhibitors and modulators. Overall, while these KOLs were intrigued by GS-5745’s mechanism of action and the preliminary data, they were very hesitant to raise expectations about the prospects for this drug. With scientific evidence supporting a more prominent role for MMP9 in inflammation compared to oncology.

No change to the Outperform rating or price target of $120.

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 closed at $82.31 yesterday.



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