Gilead Sciences shares: Price analysis before buying or selling

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ISIN code: US3755581036

Ticker: NASDAQ: GILD

Index or market: Nasdaq

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Elements to consider before selling or buying Gilead Sciences shares

Analysis N°1

In particular, it will be important to monitor the research activities carried out by Gilead Sciences with its various ongoing clinical trials and the outcome of these trials.

Analysis N°2

The marketing of the various treatments developed by Gilead Sciences will also be important and will enable the group to generate new revenues.

Analysis N°3

It will also be important to monitor the strategic partnerships set up by this company, mainly research partnerships or distribution partnerships that can improve its growth.

Analysis N°4

The competition will also be closely monitored as well as the innovations of the various other players in this market, as well as their major publications and the evolution of the market shares of each of them.

Analysis N°5

Strategic growth operations by this company, such as acquisitions or divestments, will also be events that you should monitor closely and that may affect the share price.

Analysis N°6

Finally, you should also keep an eye on Gilead Sciences' annual and quarterly earnings announcements, comparing them to previous years' results as well as to analysts' expectations and the group's roadmap forecasts.

Analysis before buying or selling Gilead Sciences shares

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General presentation of Gilead Sciences

In order to understand how the Gilead Sciences share price is likely to evolve over the long term, you need to have a thorough understanding of the company, its activities and its main sources of profitability before buying or selling this stock. This is what we are offering you right now with a complete presentation of this company.
Gilead Sciences Inc is an American company that operates in the bio-pharmaceutical sector. The company specialises in the production and sale of products for therapeutic use.
To better understand the activities of the Gilead Sciences group, they can be divided into different divisions according to the share of turnover they generate, as follows

The sale of medicines represents the largest source of revenue for the group with 98.9% of turnover. The treatments marketed are notably intended for the treatment of HIV for more than 50%, Covid-19 for nearly 7.4%, the hepatitis C virus for 4%, the treatment of hepatitis B for 1.4% and for other health problems such as cytomegalovirus retinitis or advanced Kaposi's sarcoma due to HIV.
The remaining 1.1% of the group's revenue comes from royalties and income from research and development services and the outsourced production of pharmaceutical products.

It is also interesting to know the geographical distribution of Gilead Sciences' revenues, which currently generate 70.6% of its sales in the United States. The rest comes from Europe (17.8%) and the rest of the world (11.6%).
Gilead Sciences currently employs around 14,400 people, mainly in its laboratories in the US but also in the rest of the world.

Photo credits: ©unitysphere/123RF.COM

The major competitors of Gilead Sciences

To carry out a good analysis of the Gilead Sciences share price, it is necessary to study the competition of this company and thus to know the principal adversaries of this laboratory. This is what we propose to discover here through a quick presentation of the main players in this sector:

Pfizer

The American company Pfizer is a pharmaceutical company that operates in more than 150 countries around the world and is one of the leaders in its sector in terms of turnover and market capitalisation. Pfizer employs more than 81,800 people worldwide and is best known for its numerous mergers with rival companies such as Warner-Lambert in 2000, Pharmacia in 2003 and Wyeth in 2009.

Novartis

Another competitor to Gilead Sciences is the Novartis Group which is a Swiss pharmaceutical company and one of the world's leading companies in this sector. It was created in 1996 as a result of the merger between Ciba-Geigy and Sandoz.

Roche

This holding company is one of the largest Swiss pharmaceutical companies in the world. It operates in two segments, pharmaceuticals and diagnostics, and specialises mainly in individualised medicine. Roche is present in more than 150 countries worldwide and is currently headquartered in the Roche Tower in Basel, Switzerland. The group currently employs over 94,000 people.

Sanofi

Of course, the French transnational company Sanofi is also one of Gilead Sciences' competitors. The group's activities include the pharmaceutical segment with prescription drugs for diabetes, rare diseases, multiple sclerosis and oncology as well as consumer health products and vaccines. In healthcare, Sanofi is the third largest company in the world in terms of sales but ranks eleventh in terms of market capitalisation. The group currently generates most of its turnover outside the European Union and employs more than 100,000 people.

Merck & Co

Also known as Merck Sharp and Dohme or MSD, this American pharmaceutical company employs more than 68,000 people worldwide and is one of the world's five largest pharmaceutical companies. It is a former subsidiary of the American group Merck KGaA which has been autonomous since 1917 and is no longer linked to this group.

GlaxoSmithKline

Also known as GSK, this British multinational is one of the ten largest pharmaceutical companies in the world. It was formed from the merger in 2000 of Glaxo Wellcome and SmithKline Beecham.

The major partners of Gilead Sciences

Bristol-Myers Squibb

In 2004, Gilead Sciences formed a joint venture with the American group Bristol-Myers Squibb to develop and sell a fixed-dose combination of three HIV drugs called "triple therapy".

Johnson & Johnson

In 2014, the Gilead Sciences group secured a partnership with a subsidiary of Johnson & Johnson in Ireland aimed at selling a new triple therapy against HIV.

Galapagos

In 2016, following the agreement of the United States Federal Trade Commission, a partnership with the Galapagos group was signed by Gilead Sciences regarding Filgotinib. Gilead paid the Galapagos Company for its license fee and invested $ 425 million in the company, obtaining approximately 15% of its shares.

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The factors in favour of a rise in the Gilead Sciences share price:

To understand the possibilities of the Gilead Science share increasing on the stock market, you need to be aware of the strengths of the company along with its weaknesses. Let's start by summarizing the strengths of the group.

First of all, Gilead Sciences has proven experience in innovation and the development of new products. The group's clientele shows a high level of satisfaction, particularly thanks to the customer relationship management department set up by the group, which contributes to the good brand image of the company.

Gilead Sciences can also count on a highly qualified workforce thanks to its advanced training and learning programs in which the group invests large sums each year.

The group also benefits from the strong diversity of brands in its portfolio with numerous investments over the past few years. The brands in question allow the company to extend its activities to new types of products.

Another advantage of this company is the reliability of its suppliers built on strong foundations which allows the group to obtain raw materials quickly and without a hitch.

Gilead Sciences has also shown true performance in new markets due to its expertise know-how in infiltrating them easily. With this expansion strategy, Gilead Sciences has been able to diversify its sources of income and limit the risks linked to economic cycles in the markets in which it is already present.

Finally, a true asset of the group is the significant distribution network which it has to sell its products. In addition, a very strong community of resellers also works for the company. On top of marketing Gilead Sciences products, the sellers also invest in training the sales teams to promote these products effectively.

The factors in favour of a drop in the Gilead Sciences share price:

Obviously, the Gilead Sciences group doesn't only have strengths, it also has its weak points which you should also analyse before taking your position on this stock market share. Here is a summary of the weaknesses of this company.

First, Gilead Sciences has a high workforce attrition rate compared to its competitors, which generates additional training and development costs.

There's also a lack of choice in the range of products marketed by Gilead Sciences which often leads to a loss of customers looking for more diversity. As a result, the group has recently lost market shares in niche categories due to the arrival of new competitors on the market.

It would also be good for Gilead to invest more in new technologies aimed at integrating processes at all levels, particularly regarding its geographic expansion.

Another weak point of Gilead Sciences is its organization which does not really coincide with the business model targeted by the company. This organization does not promote the expansion of certain adjacent product segments. The same goes for the group's financial forecasts with asset and liquidity ratios suggesting that the use of the company's liquidity is not at its maximum efficiency.

Finally, the company's last weak point involves the difficulties it encounters when integrating companies with a different work culture. As a result, certain merger operations end in failure.

The information supplied here is only for indicative purposes and should not be used without the completion of a comprehensive and complete fundamental analysis of this asset notably taking into account exterior data, future publications and announcements and all fundamental events and news that could influence the strengths and weaknesses or make them more or less significant. This information does not in any way constitute recommendations relating to the completion of transactions or a solicitation to buy or sell an asset.

Frequently Asked Questions

What are the latest figures published by the Gilead Sciences Company?

The Gilead Sciences Group recently published the results for the financial year 2019. In this report we can observe that the turnover of the group achieved 22,449 million American dollars in this period and the net result amounted to 5,386 million American dollars. We also know that the total stock market capital of this company in March 2020 was 93,774 million U.S. dollars at the end of the first quarter.

What are the major shareholders of the Gilead Sciences Group?

According to the data available in March 2020 the capital of the Gilead Sciences Company is divided among the following major shareholders: Capital Research & Management with 13.49% of the shares, The Vanguard Group that owns 8.03% of the shares, Putnam with a 6.59% shareholding, SSgA Funds Management with 4.59% of the shares, Geode Capital Management with a 1.52% shareholding, Dodge & Cox with 1.38% of the shares and Renaissance Technologies with 1.34% of the shares. The remainder of this company’s capital is floating.

What type of events related to Gilead should be followed in priority?

If you wish to trade in the share price of Gilead Sciences you will need to stay informed of all significant news and events relating to this company that could have an effect on its stock market share price. We would notably keep an eye on new products under development and the results of clinical trials as well as authorisations obtained for the marketing of new treatments.

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Analysis before buying or selling Gilead Sciences shares