Gilead Sciences' Tubulis Buy Underscores Shift Beyond HIV, Oppenheimer Says

MT Newswires Live04-08 23:06

Gilead Sciences (GILD) agreed to acquire Tubulis for $5 billion, its "third takeout" in six weeks as it pushes to diversify beyond its "core focus on HIV," Oppenheimer said in a report Wednesday.

The deal follows the recent takeovers of Arcellx (ACLX) and Ouro, representing a total capital outlay of roughly $15 billion. Analysts at the firm view the latest moves as a strategic effort for "adding shots on goal" to Gilead's pipeline, particularly in oncology and autoimmune diseases, the report said, adding that Gilead currently generates about 30% of its revenue outside of infectious diseases.

While the "shopping spree" highlights a decade-long shift toward cancer and inflammatory treatments, near-term focus for investors is squarely on the launch of Yeztugo, a drug in the company's HIV prevention and treatment lineup, according to the report.

Gilead is also supported by high operating margins and a "dividend yield" of about 3% to 4%, positioning the company for further growth, Oppenheimer said.

Oppenheimer reiterated an outperform rating on Gilead with a price target of $165.

Price: 139.77, Change: +0.97, Percent Change: +0.70

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment