| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 56.00 | -53 |
| Intrinsic value (DCF) | 45.45 | -62 |
| Graham-Dodd Method | n/a | |
| Graham Formula | 4.60 | -96 |
Gilead Sciences, Inc. (GIS.DE) is a leading biopharmaceutical company headquartered in Foster City, California, specializing in the discovery, development, and commercialization of innovative medicines for unmet medical needs. Operating globally, Gilead focuses on critical therapeutic areas, including HIV/AIDS, liver diseases, hematology, oncology, and cell therapy. The company's flagship products, such as Biktarvy and Veklury, have solidified its reputation in antiviral treatments, while Yescarta and Tecartus highlight its advancements in oncology. Gilead's strategic collaborations with firms like Arcus Biosciences and Galapagos NV enhance its R&D pipeline, ensuring sustained innovation. With a market cap exceeding €116 billion, Gilead is a key player in the healthcare sector, leveraging its strong portfolio and partnerships to address complex health challenges worldwide. Its commitment to tackling diseases like HIV, COVID-19, and cancer positions it as a vital entity in global healthcare.
Gilead Sciences presents a compelling investment case with its robust portfolio of antiviral and oncology treatments, generating steady revenue streams. The company's strong cash position (€9.99 billion) and operating cash flow (€10.83 billion) provide financial stability, supporting R&D and dividends (€3.02 per share). However, high total debt (€26.71 billion) and modest net income (€480 million) pose risks. Gilead's low beta (0.282) suggests lower volatility, appealing to conservative investors. Its leadership in HIV and expanding oncology pipeline offer growth potential, but competition and patent expirations could pressure margins. Investors should weigh its innovation capabilities against financial leverage.
Gilead Sciences holds a competitive edge in antiviral therapies, particularly HIV and hepatitis C, with blockbusters like Biktarvy and Epclusa. Its oncology segment, bolstered by Yescarta and Tecartus, is gaining traction but faces stiff competition. Gilead's collaborations (e.g., with Arcus Biosciences) strengthen its immuno-oncology pipeline. However, the company's reliance on HIV drugs (≈60% of revenue) exposes it to pricing pressures and generics. Competitors like GlaxoSmithKline (HIV) and Merck (oncology) challenge its market share. Gilead's acquisition strategy (e.g., Immunomedics for Trodelvy) diversifies its portfolio but integration risks persist. Its financial health—strong cash flow but high debt—requires careful management. Overall, Gilead's innovation and global reach position it well, but diversification beyond antivirals is critical for long-term dominance.