GILD – Markets are pricing in expectations for Uniform ROA to drop to historical lows, but management is confident about their pipeline, acquisitions, and treatments

• Gilead Sciences Inc. (GILD:USA) currently trades well below corporate averages relative to UAFRS-based (Uniform) Earnings, with a 7.7x Uniform P/E. At these levels, the market is pricing in bearish expectations for the firm, but management is confident about their pipeline, acquisitions, and treatments

• Specifically, management is confident that their HIV sales rose by 12% to $16.4bn, that the durability of their existing pipeline is underappreciated, and that they have a broad oncology portfolio. Moreover, they are confident their Pharmasset acquisition helped build sustainable top line growth and their Galapagos transaction extended their inflammatory disease portfolio. In addition, they are confident Biktarvy is an important part of their ending-the-epidemic initiatives and that results from Yescarta’s Phase III DLBCL trial will be announced in the second half of the year