Goldman Sachs Comments on Gilead Sciences (GILD) Q1

Goldman Sachs maintained a Neutral rating on Gilead Sciences (NASDAQ: GILD) and raised its price target to $65.00 (from $63.00).

Analyst Terence Flynn said, "Sovaldi posted an impressive beat in its first full quarter on the US market and we raise our 2014 sales estimate. Sovaldi 1Q US sales of $2.1bn were driven by demand and increased inventory (GILD noted inventory is difficult to quantify, but looking back on Incivek suggests 2-3 weeks or $400mn vs. $70mn in 4Q13). To date in the US ~30K patients have initiated treatment (70% G1) and the payer mix is roughly 45% commercial, 45% Medicare and 7% Medicaid. GILD noted that negotiations with payers are progressing in line with expectations and it remains confident in the drug’s value proposition. Some payers are trying to restrict Sovaldi to later-stage patients and some EU countries are likely to take a staged approach to treatment, which could somewhat gate sales. Our focus is on our TAM analysis and sustainability, which suggests expectations remain high."

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences closed at $72.86 yesterday.

You May Also Be Interested In

• Gilead Sciences (GILD) Reiterated at Overweight by Cantor Fitzgerald: Yeztugo Total TRx Down
• Kroger (KR) PT Lowered to $63 at UBS as Execution Challenges Persist
• Allegro MicroSystems (ALGM) PT Raised to $70 at TD Cowen: 'Secular + Cyclical Growth Combo'