RBC Capital analyst Brian Abrahams reiterated an Outperform rating and $91.00 price target on Gilead Sciences (NASDAQ: GILD) and believes the company should acquire if they can get it for less than $9.6B. The acquisition of Otezla and its associated commercial infrastructure just became available from CELG due to BMY merger FTC considerations. He believes it would represent a bolt-on strategy to accelerate GILD's entrance into the I&I space.

The analyst stated "After constructing a sensitivity analysis (available upon request) that accounts for the potential synergies from assumption of expenses GILD would have had to take on anyway, we believe GILD could bring in the asset for $7.3-9.6B (breakeven point $8.5B), and it would provide ~17% earnings accretion and good business rationale with negligible (+/-1%) impact on its valuation – making it a potentially wise use of capital, and another important step as Dan O'Day implements his vision for the company's future".

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Shares of Gilead Sciences closed at $66.93 yesterday.