Gilead Sciences (GILD) Stock Declines Today as Generic Sovaldi Alternative Launches in Bangladesh

Gilead Sciences (GILD) shares are falling after Bangladesh pharmaceutical company Incepta announced the launch of a $10 per pill generic version of Sovaldi.
By Tony Owusu ,

NEW YORK (TheStreet) -- Gilead Sciences (GILD) - Get Report shares are down 0.89% to $100.90 in trading on Monday after a $10 version of the biotech company's Sovaldi went on sale in Southeast Asia today.

Bangladesh-based Incepta Pharmaceuticals launched a $10 per pill version of Sovaldi today, which normally sells for about $1,000 a pill in countries that recognize Gilead's patent on the drug.

Incepta does not have permission from Gilead to sell its version of the drug though the company said that it has plans to sell the drug in other markets overseas that do not recognize the company's patent.

Under its agreement with the World Trade Organization, Bangladesh does not have to recognize or protect pharmaceutical patents.

Gilead has received criticism in the past for pricing the hepatitis C treatment at $84,000 for a 12-week treatment program.

TheStreet Ratings team rates GILEAD SCIENCES INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:

"We rate GILEAD SCIENCES INC (GILD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, impressive record of earnings per share growth, compelling growth in net income and notable return on equity. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results."

Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • GILD's very impressive revenue growth greatly exceeded the industry average of 35.5%. Since the same quarter one year prior, revenues leaped by 134.4%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Looking at where the stock is today compared to one year ago, we find that it is not only higher, but it has also clearly outperformed the rise in the S&P 500 over the same period. Although other factors naturally played a role, the company's strong earnings growth was key. Turning our attention to the future direction of the stock, it goes without saying that even the best stocks can fall in an overall down market. However, in any other environment, this stock still has good upside potential despite the fact that it has already risen in the past year.
  • GILEAD SCIENCES INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, GILEAD SCIENCES INC increased its bottom line by earning $7.38 versus $1.83 in the prior year. This year, the market expects an improvement in earnings ($9.47 versus $7.38).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 340.6% when compared to the same quarter one year prior, rising from $791.41 million to $3,486.72 million.
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, GILEAD SCIENCES INC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: GILD Ratings Report
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