Gilead's 'R&D Day' Points To Upside For Shareholders

On Tuesday, Jefferies issued a company note on Gilead Sciences, Inc. GILD after an "R&D Day" showed that potential drug candidates in the hepatitis B market may prove effective. Currently, analysts at Jefferies rate Gilead as a Hold with an $100 price target.

Brian Abrahams and Gregory Renza, analysts at Jefferies, wrote, "On 2/29, we hosted an 'R&D Day' with expert views on GILD's non-HCV pipeline. We came out believing their candidates have good scientific rationale; outside of HIV, it will take additional time/data to address outstanding mechanistic, clinical, and commercial unknowns and determine how GILD's agents can differentiate to generate meaningful revs. Overall, we see a pipeline of promise, but one that could also benefit from more transformative later stage assets."

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Key Takeaway: HBV Treatment

Jefferies gave one key takeaway following the analyst day: HBV treatment.

Analysts at Jefferies noted that Gilead is one of the leaders in the hepatitis B cure market with drugs in their pipeline that could provide strong revenue and profit growth. Research analysts also said that the pipeline could benefit from more transformative later-stage assets. According to prominent leaders in the medical community, the population eligible for HBV treatment may increase which has the potential to drive revenue opportunities for Gilead and provide upside for shareholders.

Gilead opened Tuesday trading at $87.87.