Oppenheimer Reiterates Outperform Rating, $61 PT on Gilead Sciences Following Initial Idelalisib Ph.II Results

In a report published Monday, Oppenheimer analyst David Ferreiro reiterated an Outperform rating and $61.00 price target on

. In the report, Oppenheimer noted, “GILD reported initial ph.II results evaluating idelalisib (PI3K inhibitor) monotherapy in refractory indolent NHL. The results were within our expectations with idelalisib producing a 53.6% ORR, generally consistent with that seen in the prior ph.I single-agent study. We believe these results are compelling, given the study's heavily refractory patient population (~4 median prior therapies). Further, we believe this level of efficacy remains generally competitive with other investigational agents for NHL. Idelalisib's main area of uncertainty remains around its market potential, given the crowding NHL/CLL space. We currently model very conservative peak idelalisib sales of ~$700M in NHL/CLL, but see the potential for meaningful upside. We reiterate Outperform.” Gilead Sciences closed on Friday at $52.23.