Near-Term Headwinds And Long-Term Promise For Gilead Sciences

UBS says the focus on Gilead Sciences, Inc. GILD is shifting to NASH amid weaker HCV sales. The brokerage maintains its Buy rating, as it remains encouraged by the top-line ' 4997 data in NASH and the company's plan to enter Phase 3 in the first quarter 2017 with combo studies beginning in mid-2017.

“We continue to believe that the NASH (non-alcoholic steatohepatitis) franchise is well-positioned to address the large market opportunity,” analyst Marc Goodman wrote in a note.

Goodman cut his total 2016 HCV estimates by $954 million to $15.3 billion after HCV sales globally fell 17 percent sequentially for the third quarter. Gilead reported third-quarter top-line product sales in line but missed on the bottom line by $0.11 on higher costs and taxes.

However, the company’s HIV sales came $190 million above consensus of $431 million.

Goodman reiterated his $118 price target on the stock, which was down 1.51 percent to $72.95 at last check.