NEW YORK (TheStreet) -- Shares of Gilead Sciences (GILD) stock are up 10 cents to $79.94 despite a "low value" rating given to the company's hepatitis C drug treatment Sovaldi by a California medical group.
Citing its high cost, the California Technology Assessment Forum concluded that not all hep C patients need the most expensive drugs on the market. The insurance group estimated that treatment using the Sovaldi regimen would cost the state of California $84,000 per patient or $6 billion for the entire state. Meanwhile, a cheaper alternative produced by Johnson & Johnson (JNJ) costs $66,000.
Medicaid authorities in Pennsylvania and Colorado already limit Sovaldi treatments to only the sickest patients citing the drugs high cost.
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, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."