Gilead Sciences (GILD): 'Acquisition Wanted! - Please Apply Within'
Following its 'kitchen sink' HCV guidance and subsequent 9% sell-off, the urgency for Gilead Sciences (NASDAQ: GILD) to make an acquisition continues to intensify. On the call, the company essentially admitted that it cannot grow over the next few years without a deal.
On the call, Evecore ISI analyst Mark Schoenebaum asked management flat out "can you grow the company without an acquisition?"
Responding to the question, CEO John Milligan said it would be "challenging for us to grow without some sort of acquisition."
So, it's just a matter of 'when' not 'if' the company does a deal.
Commenting on potential takeover targets analyst, Gabelli's Jing He said Incyte (NASDAQ: INCY) is a good fit due to Gilead's interest in growth oncology asset, as well as BioMarin (NASDAQ: BMRN) which has the size Gilead favors and also provides growth. However, they would not rule out large transaction like Bristol-Myers Squibb (NYSE: BMY) due to its recent setback in lung cancer.