NEW YORK (TheStreet) -- Shares of Gilead Sciences (GILD) are slumping by 1.87% to $84.17 in mid-afternoon trading on Friday, as Leerink expects that sales of the company's hepatitis-C treatments will continue to decline through 2016.
The biopharmaceutical company reported that first-quarter sales of its hepatitis-C treatments dropped by 12% compared to the fourth quarter and by 6% compared to the year-ago period, Leerink notes, Barron's reports.
"Given that Gilead has one of the most dominant franchises in recent industry history, GILD's investors and analysts experienced a rude awakening (as apparently did Gilead's management) when the company disclosed softening HCV sales in Q1 2016 based on growing rebates, more government purchases, and shorter treatment duration," the firm wrote in a note.
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Leerink estimates that revenue from hepatitis-C treatments will continue to erode steadily, and now expects the company to report full-year hepatitis-C sales of $8.7 billion, which is 5% less than its previous $9.2 billion estimate.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Gilead's strengths such as its revenue growth, notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: GILD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
The biopharmaceutical company reported that first-quarter sales of its hepatitis-C treatments dropped by 12% compared to the fourth quarter and by 6% compared to the year-ago period, Leerink notes, Barron's reports.
"Given that Gilead has one of the most dominant franchises in recent industry history, GILD's investors and analysts experienced a rude awakening (as apparently did Gilead's management) when the company disclosed softening HCV sales in Q1 2016 based on growing rebates, more government purchases, and shorter treatment duration," the firm wrote in a note.
The markets may be unpredictable, but Jim Cramer can show you how to navigate it like a pro. Follow his blue-chip portfolio of stocks at Action Alerts PLUS. Join today and try it for 14 days—FREE!
Leerink estimates that revenue from hepatitis-C treatments will continue to erode steadily, and now expects the company to report full-year hepatitis-C sales of $8.7 billion, which is 5% less than its previous $9.2 billion estimate.
Separately, TheStreet Ratings team rates the stock as a "buy" with a ratings score of B.
Gilead's strengths such as its revenue growth, notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: GILD
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
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