All Is Well That Ends Well; Acquisition By Gilead Sciences Pays Off

Gilead Sciences, Inc. (GILD) on Saturday posted spectacular interim results for the Phase 2 of its Electron Study, the results of which will be presented today at the annual meeting of the American Association for the Study of Disease in Boston. The study examined 25 patients with genotype 1 chronic HCV infection who were treated for 12 weeks with three drugs: sofosbuvir, ribavirin and GS-5885. The study revealed that patients who had never received the combination of the drugs before witnessed a reduction in the infection to undetectable levels. The results point towards the effective use of sofosbuvir-based all-oral regimens. We reiterate our positive stance on the stock.

The stock is up ~11 % since our last  buy recommendation. We pointed out that results from the aforementioned study should be watched closely by investors. Although we remain optimistic about the performance of the company once the HCV drug hits the market in 2015, we additionally based our investment thesis on the idea that Stribild will continue to drive revenue growth due to its dominant position in the HCV market. This position will be bolstered further with the launch of the product. Read more