Company Name: Gilead Sciences Inc.
Ticker Symbo: GILD
Market Sector: Health Care / Biotechnology
Gilead Sciences develops and markets pharmaceutical drugs for life-threatening diseases. The most common is HIV and then hepatitis B and C. We all need biotechnology companies to research and develop drugs to treat many people with diseases and illnesses. But most often the pharmaceuticals (drugs) get harsh commentary on their high cost. It is true, that most drugs are very expensive and we have no choice but to pay for them, but it is also true that if a company such as Gilead does not recoup their expenses on research then there will not be any drugs to treat ongoing diseases and illnesses.
Brand name drugs do get hurt when generic versions come to market because the generic drugs did not need to incur costs on the research and development. Therefore generic drugs are less expensive to us consumers.
I like Gilead at current price level of $99.00. It was beaten up earlier due to Express Scripts cancelling their order with Gilead for hepatitis C drug due to high cost. Their hepatitis C drug is only taken once a day with faster results. There is more to Gilead than hepatitis C and this pull back afforded an attractive entry point for the stock carrying a low P/E of 12.5. This is lower than competitors Amgen, AbbVie and Biogen. They have a nice growth rate even without paying a dividend. If you are a dividend investor then Gilead is not for you. I am okay holding some non-dividend paying stocks to offset those lower growth rate dividend paying stocks.
Let’s face it, health care is not going away and has assisted us in living our lives longer. Health care stocks belong in an investment portfolio.
Conclusion: If you are looking for a Health Care stock for your portfolio, take a hard look at Gilead Sciences.
Good Luck and know what you are invested in.
Here is a RealTime Snap Shot of GILD: