Gilead Sciences (GILD) Stock Rises After European Commission Market Authorization for Harvoni

NEW YORK (TheStreet) -- Shares of Gilead Sciences  (GILD) rose 1.74% to $102.19 in morning trading Tuesday after the European Commission granted marketing authorization for its hepatitis C treatment Harvoni.

Gilead touts Harvoni, which the FDA approved in October, as "the first once-daily single tablet regimen to treat the majority of chronic hepatitis C genotype 1 and 4 infection in adults." The company recommends a treatment cycle of 12 or 24 weeks based on prior treatment history and cirrhosis status.

"Genotype 1 patients living with hepatitis C in Europe and the physicians who treat them have been waiting for a treatment advance like this for decades," said Graham Foster, MD, Professor of Hepatology, Queen Mary University of London, in a Gilead statement.

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"With Harvoni, we have the potential to transform the way we treat people living with the most prevalent form of hepatitis C in Europe. We can now expect very high SVR rates, and for many patients, we can eliminate the need for interferon injections and ribavirin and offer a cure in a once-daily tablet."

Separately, 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 41.4%. Since the same quarter one year prior, revenues leaped by 117.1%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • Powered by its strong earnings growth of 255.31% and other important driving factors, this stock has surged by 52.11% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, GILD should continue to move higher despite the fact that it has already enjoyed a very nice gain 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 $1.83 versus $1.64 in the prior year. This year, the market expects an improvement in earnings ($7.96 versus $1.83).
  • 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 246.3% when compared to the same quarter one year prior, rising from $788.61 million to $2,731.27 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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