On Monday, Oppenheimer maintained an Outperform rating on Gilead Sciences (NASDAQ:GILD) and increased the price target to $115 from the previous $105. The biotech giant, with a market capitalization of $113 billion and an impressive "GREAT" financial health score according to InvestingPro analysis, has seen its stock surge over 45% in the past six months.
The adjustment comes as Gilead's partner, Arcellx, is set to present results from its study on a novel multiple myeloma CAR-T therapy, anito-cel, at the American Society of Hematology (ASH). Gilead, which owns a 50% stake in the program, could see significant progress towards its long-term revenue goals if the data are positive.
The new therapy, developed in partnership with Arcellx, has the potential to meet Gilead CEO Dan O'Day's ambition for oncology to account for one-third of the company's total revenues by 2030. The analyst believes that the treatment could perform as well as, or even better than, the competing therapy Carvykti, developed by Legend Biotech in partnership with Johnson & Johnson (JNJ).
The multiple myeloma market is not seen as a zero-sum game by the analyst, who suggests that there is ample opportunity for multiple players. With a market potential exceeding $12 billion, and JNJ currently facing challenges in meeting the demand for Carvykti due to manufacturing constraints, this presents an ideal scenario for Gilead to leverage its capabilities in cell therapy production. The company's strong position is reflected in its $28.3 billion trailing twelve-month revenue and robust free cash flow yield.
Oppenheimer's stance reflects confidence in Gilead's ability to capitalize on this opportunity and strengthen its position in the oncology market. The price target increase to $115 from $105 reaffirms the firm's positive outlook on Gilead's prospects in the space.
With 16 analysts recently revising earnings estimates upward, InvestingPro subscribers can access detailed analysis and 12 additional key insights about Gilead's future potential through the comprehensive Pro Research Report.
In other recent news, Gilead Sciences and biotech firm Tubulis have entered into an exclusive agreement to develop an antibody-drug conjugate for solid tumor treatment, with potential payments totaling up to $415 million. In financial developments, Gilead issued $3.5 billion in senior notes aimed at general corporate purposes.
Analysts from RBC Capital Markets and Citi have maintained a Sector Perform and assigned a Buy rating respectively, reflecting confidence in Gilead.
Gilead's investigational HIV prevention drug, lenacapavir, has shown a 96% reduction in HIV infections in a pivotal Phase 3 trial, supporting global regulatory filings expected to commence by the end of 2024.
The company also reported promising interim results from its Phase 3 ASSURE study on Livdelzi, a treatment for primary biliary cholangitis, with 81% of patients achieving a composite biochemical response.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.