Gilead: After the data come the commercial realities

Gilead’s (NASDAQ:GILD) Q1 results were unsurprisingly overshadowed by discussions on remdesivir, Barclays analyst Carter Gould writes in a note to clients.

Disclosures of up to $1B in remdesivir spend this year and the lack of any meaningful color on its economics will likely weigh on shares near term.

Importantly, donating 1.5M doses also delays any clarity on pricing strategy for at least the next month.

GILD is appropriately reading the room. But the market “has priced in such an optimistic view of remdesivir’s commercial potential that we suspect the near-term uncertainty will weigh on shares notably.”

Upcoming data from the NIAID and SIMPLE studies over the next few weeks should provide further characterization of remdesivir’s profile.

Retains Sell rating. Price target of $67 from $62 implies 24% downside.

Shares are -3.5% on light premarket volume.

Read Gilead’s Q1 earnings call transcript.

https://seekingalpha.com/news/3567471-gilead-after-data-come-commercial-realities