NEW YORK (TheStreet) -- Shares of Gilead Sciences (GILD) were lower in mid-afternoon trading on Monday despite Leerink maintaining an "outperform" rating and $122 price target on the stock, Barron's reports.
The firm said that Gilead could see a "slight uplift" in its research and development strategy following positive results from a phase II trial run by the company's Belgian partner Galapagos (GLPG).
Galapagos announced this weekend that filgotinib, the company's treatment for gastrointestinal Crohn's disease, showed "positive trends" in endoscopic and tissue data in a recent study.
Leerink said that "these data, while not overwhelming, continue to support the potential of filgotinib as a treatment for Crohn's," and could boost Gilead's research and development strategy.
The companies expect to begin a phase III trial of the drug for Crohn's disease next quarter, Leerink notes.
The biopharmaceutical company, based in Foster City, CA, recently "took a hit" when it announced it was discontinuing a drug for ulcerative colitis, the firm said.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "buy" with a ratings score of B.
The company's strengths can be seen in multiple areas, such as its notable return on equity, attractive valuation levels and expanding profit margins. We feel its strengths outweigh the fact that the company has had sub par growth in net income.
You can view the full analysis from the report here: GILD