On Tuesday, BMO Capital Markets maintained its Outperform rating on Gilead Sciences (NASDAQ:GILD), with a steady price target of $94.00. The firm's analysis highlighted recent data from Gilead/Arcellx's Phase 2 iMMagine-1 study, which assessed anito-cel in treating 4L+ RRMM, a type of relapsed or refractory multiple myeloma. The data, according to BMO, suggests that anito-cel has a competitive profile when compared to Carvykti, a similar treatment.
The analyst pointed out that while efficacy enhancements are modest and the data is preliminary, the safety profile, particularly regarding neurological toxicity, is a critical aspect for Gilead's product to gain market share over Carvykti in the RRMM treatment landscape. The anticipation for further Phase 2 data set to be revealed on December 9 adds to the current findings.
In addition to the Phase 2 results, the analyst noted longer-term Phase 1 data with a 38.1-month follow-up. This longer-term data indicated a median progression-free survival (mPFS) of 30.2 months, with median overall survival (mOS) not yet reached, potentially underscoring the treatment's durability and long-term efficacy.
BMO's position reflects confidence in Gilead's ongoing research and its potential impact on the company's standing in the treatment of multiple myeloma. The upcoming presentation in December is expected to provide further insights into anito-cel's efficacy and safety, which could be pivotal for its commercial success and Gilead's growth in this therapeutic area.
In other recent news, Gilead Sciences has been the focus of numerous analyst reports. BMO Capital maintained its Outperform rating for Gilead, despite recent challenges in its solid tumor oncology division, emphasizing the importance of other aspects of the business, such as cell therapy and HIV treatments.
TD Cowen sustained its Buy rating on Gilead, with adjustments to revenue projections for Veklury and the liver disease franchise, setting a third-quarter non-GAAP earnings per share estimate at $1.75. Leerink Partners upgraded Gilead's stock from Market Perform to Outperform, following positive Phase 3 results for the HIV drug lenacapavir.
Gilead's HIV drug, lenacapavir, demonstrated a significant 96% reduction in HIV infections in a Phase 3 trial, with plans to file for approval by the end of 2024. The company reported a 6% year-over-year rise in total product sales, driven by an 8% rise in sales for its HIV treatment, Biktarvy, and a 23% increase for the oncology drug, Trodelvy.
Despite Gilead's decision to withdraw mUC indication from its Trodelvy label, TD Cowen maintained its Buy rating on the company, forecasting approximately $1.4 billion in revenue from breast cancer indications for Gilead by 2025. Wells Fargo (NYSE:WFC) maintained its Overweight rating on Gilead, projecting Veklury sales around $260 million.
InvestingPro Insights
Gilead Sciences' recent positive data from its Phase 2 iMMagine-1 study aligns with several key financial metrics and insights from InvestingPro. The company's strong market position is reflected in its substantial market capitalization of $112.22 billion. Gilead's revenue of $27.8 billion in the last twelve months, coupled with a healthy gross profit margin of 77.44%, underscores its financial strength in the competitive biotechnology sector.
InvestingPro Tips highlight Gilead's status as a "prominent player in the Biotechnology industry," which is consistent with BMO Capital Markets' Outperform rating. The company's ability to sustain research and development efforts, crucial for advancements like the anito-cel treatment, is supported by its strong cash flows that "can sufficiently cover interest payments."
Moreover, Gilead's stock performance has been noteworthy, with a 21.18% price total return over the last three months and a 41.7% return over six months. This upward trajectory aligns with the positive outlook on the company's research outcomes and potential market share gains in the RRMM treatment landscape.
For investors seeking more comprehensive analysis, InvestingPro offers 12 additional tips for Gilead Sciences, providing a deeper understanding of the company's financial health and market position.
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