Gilead Sciences, Inc. (NASDAQ:GILD) is under pressure amid weaknesses in the HCV business. Gilead’s revenue in the third quarter slumped 13% while net income in the period declined by 18% year-over-year. Thanks to it consistent mergers & acquisitions practice the company has exposure to several other industries. Gilead stock is up over 3% since the start of this year.
Gilead Sciences, Inc. (NASDAQ:GILD) management is expecting to see a revival in the HCV business. Its CEO John Milligan recently said at a Credit Suisse conference that the effect of pricing wars in the Hepatitis C industry will die down in 2018, and the market will start evaluating the drugs based on their performance. As a result, according to Milligan, Gilead will rise as its Epclusa drug is better than its competitor launched by AbbVie.
Gilead Sciences, Inc. (NASDAQ:GILD) is rapidly expanding in China, one of the biggest growth markets in the world. Investors are also excited about Gilead’s $11.9 billion acquisition of Kite Pharma, which was announced back in August. Kite Pharma will give Gilead exposure to the lucrative oncology market. One of its other biggest growth catalysts after the buyout of Kite is Yescarta, a cell-based gene therapy to treat large B-cell lymphoma. The treatment was granted approval by the FDA last month. Gilead Sciences, Inc. (NASDAQ:GILD) has plans to revamp, train and certify some of its sites for CAR-T therapy. The company’s CEO recently said that there will be 70 sites by the end of 2018 where patients will be able to get admitted for CART-T therapy.
Analysts also think that investors should understand that Gilead’s future is not solely dependent upon its HCV business. Hepatitis B and HIV sales are thriving. In the third quarter, HIV and Hepatitis B revenues increased by 3% to reach $3.6 billion. In October, Gilead Sciences, Inc. (NASDAQ:GILD) announced positive results regarding a study on the switch to the company’s new experimental combo (bictegravir/F/TAF combination) for HIV. The combination of drugs could bring in about $5 billion in annual sales. The combo is expected to get a response from the FDA if the combination is approved or rejected by February 2018. The new combinational drug has very little side effects.