UPDATE: Oppenheimer Raises Gilead PT on Promising Oncology Pipeline
Oppenheimer analyst David Ferreiro published a report Wednesday that maintained an Outperform rating on Gilead Sciences (NASDAQ: GILD) and increased the price target from $45 to $50.
Ferreiro wrote, "We reviewed GILD's oncology pipeline, focusing on lead candidates idelalisib (PI3K inhibitor) for NHL/CLL and CYT387 (JAK inhibitor) for myelofibrosis. Based on their MoAs and favorable ph.I/II datasets, we see a high probability of ph.III success for these compounds. Although both face significant competition, we believe little to no value is priced into shares for these compounds. We are now including very conservative base-case estimates for idelalisib/CYT387, with room for upside potential. Although ph.III readouts will not occur until 2014-2016, we believe value for these candidates and the overall oncology pipeline will begin to creep into shares toward year-end."
Gilead closed Wednesday at $45.90.
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