Market Overview

Raymond James: Gilead In NASH For The Long Haul

Share:
Raymond James: Gilead In NASH For The Long Haul

Gilead Sciences, Inc. (NASDAQ: GILD) announced a strategic collaboration Wednesday with Scholar Rock Holding Corp (NASDAQ: SRRK). Although not strictly a nonalcoholic steatohepatitis, or NASH, deal, the initiative could be a sign that “Gilead is in NASH for the long haul,” according to Raymond James.

The Analyst

Analyst Steve Seedhouse maintains a Strong Buy rating on Gilead with an unchanged $94 price target.

The Thesis

Given the limited scope of Gilead’s in-house NASH assets, the company will need to enter into more NASH deals over the next 12-18 months, Seedhouse said in a note. 

A significant possibility exists of Gilead’s ongoing Phase 3 STELLAR3 and STELLAR4 trials failing, which would lead the company to consider more deals to grow within the NASH market, the analyst said. 

Gilead could purchase a commercial-ready NASH asset, Seedhouse said, which points to two options: Intercept Pharmaceuticals Inc (NASDAQ: ICPT) and Genfit SA.

There’s a higher probability of Gilead buying Intercept, given the better prospects of Ocaliva versus elafibranor, as well as the likelihood of success of the Phase 3 REGENERATE trial,he said. 

Data from the trial is expected in the first half of 2019, and there’s a 90-percent probability of at least one approvable endpoint being met, Seedhouse said. 

Another strategic option that Gilead may take is to acquire or develop a good cardiometabolic asset, according to Raymond James. 

Price Action

Gilead shares were trading near-flat at $64.22 at the time of publication Thursday. 

Related Links:

Roche Executive Daniel O'Day to Succeed John Milligan As Gilead CEO

Intercept Pharma Notches 2 Upgrades On Ocaliva Prospects

Latest Ratings for GILD

DateFirmActionFromTo
Jul 2019MaintainsNeutral
Jul 2019MaintainsStrong Buy
Jul 2019UpgradesOutperformTop Pick

View More Analyst Ratings for GILD
View the Latest Analyst Ratings

Posted-In: Raymond James Steve SeedhouseAnalyst Color Biotech Price Target Reiteration Analyst Ratings General Best of Benzinga

 

Related Articles (GILD + ICPT)

View Comments and Join the Discussion!

Latest Ratings

StockFirmActionPT
IINDoughertyAssumes34.0
PNRJefferiesInitiates Coverage On
YYUBSUpgrades
ROKUOppenheimerMaintains155.0
IPHIBank of AmericaMaintains80.0
View the Latest Analytics Ratings
Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Trading Daily
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Daily Analyst Rating
A summary of each day’s top rating changes from sell-side analysts on the street.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com

Sell-Side Slashes DBV Tech Price Targets After Withdrawal Of BLA For Peanut Allergy Immunotherapy

5 Biggest Price Target Changes For Thursday