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How’s Gilead Sciences Positioned in October?

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Gilead Sciences

For Gilead Sciences (GILD), falling revenues and recent gains in the stock price have kept investors interested in the stock. A slew of key collaboration and licensing arrangements have piqued investors’ interest in the company’s research programs.

In this series, we explore Gilead Sciences’ valuations, financial performance, upside potential, and recent developments.

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Recent collaborations

In September, Gilead Sciences entered into a strategic collaboration with Precision BioSciences to develop therapies targeting HBV (hepatitis B virus). Gilead Sciences is making use of Precision BioSciences’ proprietary genome editing platform. The current treatments for the disease suppress the replication of the virus but don’t clear it entirely. According to Gilead Sciences, ~257.0 million people across the globe live with HBV.

On October 2, Gilead Sciences’ Kite and HiFiBio Therapeutics entered into a research collaboration and licensing agreement to develop technology that supports discovering neoantigen-reactive T cell receptors, which could treat different cancers. HiFiBio Therapeutics will receive $10 million as an upfront payment. The company will also be eligible for research milestone payments.

For 2018 and 2019, Gilead Sciences expects to incur research and development expenses of $3.73 billion and $3.77 billion, respectively. Bristol-Myers Squibb (BMY), Merck (MRK), and Pfizer (PFE) are expected to incur research and development expenses of $5.28 billion, $7.82 billion, and $7.86 billion, respectively, in 2018.

Next, we’ll discuss Gilead Sciences’ licensing agreement with Trianni, its major customers, and recent product approval.

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