Analyst Terence Flynn from Morgan Stanley maintained a Buy rating on Gilead Sciences and keeping the price target at $143.00.
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Terence Flynn has given his Buy rating due to a combination of factors surrounding Gilead Sciences’ strategic positioning and legal developments. A significant aspect is the potential extension of exclusivity for Biktarvy, a key product in Gilead’s HIV franchise, which is crucial as it represents a substantial portion of the company’s projected revenues. The ongoing litigation with generic challengers mirrors a similar situation faced by AbbVie’s Rinvoq, where a settlement extended exclusivity, positively impacting the stock.
Flynn notes that Gilead has already settled with two of the three generic filers, with the remaining litigation involving Cipla set for trial. The favorable outcomes in previous patent disputes, such as the denial of Cipla’s request for inter partes review, bolster confidence in Gilead’s ability to maintain exclusivity. Additionally, historical precedents suggest a high likelihood of settlement with remaining challengers, which could further secure Gilead’s market position and revenue streams, justifying the Buy recommendation.
According to TipRanks, Flynn is a 3-star analyst with an average return of 3.2% and a 53.09% success rate. Flynn covers the Healthcare sector, focusing on stocks such as BioNTech SE, Gilead Sciences, and Royalty Pharma.
In another report released today, J.P. Morgan also maintained a Buy rating on the stock with a $145.00 price target.