Rumours indicate a deal with Incyte worth between 35 to 42 billion may happen quite soon. While not clear if this will be a good long term deal it may be seen as a bold move to increase revenue by investors not too keen to look into the fine print.
Looking at $GILD itself - the price also is quite low in terms of EPS and we are also served a good dividend.
The negative story was declining revenue in 2016 and weak guidance for 2017. The decline of revenue from their HVC hepatitis C fighting drugs will be somewhat offset by the rise of the HIV treatments they are selling successfully. In addition to that they are actively looking to increase patient numbers through advertising to baby boomers who may be carriers of hepatitis C without knowing it. Also, it's possible guidance was much more negative than reality (but will see about that in q1 reveal of numbers).
At the current price, valuation and cash that Gilead has it seems like a value play. Their increased R and D spending from last years also means the company was looking in the future. I don't see the stock going below 65 and right now it's 67.58 USD.
Disclaimer: I am a shareholder who bought at 70 and considering buying again.
Submitted March 13, 2017 at 12:07PM by SmartBets http://ift.tt/2lTFJQI
