- RBC Capital Market views Gilead Sciences Inc's GILD Q1 as a solid quarter, with a bottom-line beat reflecting Veklury cash flow boost, solid core business performance despite seasonal headwinds, and in-line operating expenses.
- The analyst notes that the story remains somewhat catalyst light, especially with transformative M&A likely off the table.
- HIV sales, particularly Biktarvy, were generally in line.
- The analysts expect a rebound 2Q-4Q with aggregate sales of $12.8 billion and see little risk to HIV contributing substantially to $90 billion in base business cash flow over the next ten years. The management notes no overall changes in HIV gross/net patterns.
- Core business performing well, with strong Veklury helping offset typical 1Q seasonality and setting the stage for improving HIV growth throughout the rest of the year.
- Raymond James says 1Q was a benign print for Gilead, which appears focused on turning the flywheel for its existing portfolio of HIV products and oncology programs spanning cell therapy.
- The analysts note that splashy M&A and biz dev has not helped GILD's valuation in recent years and may be unlikely to help now since it could simply be interpreted as waning confidence in Trodelvy, Magrolimab.
- Price Action: GILD shares are down 2.79% at $59.84 during the market session on the last check Friday.
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