Gilead Sciences (Nasdaq:GILD) is about to release earnings. Follow this Bear Case Scenario as you ponder management comments.
Litigation with Roche, Merck, and Idenix will shave Gilead’s Sovaldi profits.
Gilead’s HIV franchise generates 75% of the firm’s revenue. Mission critical dependence on tenofovir, puts pressure on Gilead’s hepatitis C portfolio to support growth. Exclusivity expires in 2018. Not that long away in the drug world.
Hep C regimens from Bristol and AbbVie will spark price wars when PBMs learn to negotiate aggressively.
Atripla becomes a formidable generic competitor to Gilead’s newer HIV products by 2021.
George Gutowski writes from a caveat emptor perspective.