01-03-2017, 03:03 PM
(01-03-2017, 01:04 PM)Kerim Wrote: For those of you picking GILD, can you share a few thoughts as to why the valuation is so low right now? Why is the market sour on it, and why is that perspective not accurate?
There are plenty of sound opinions out there which detail all aspects but in short, more competition from Merck and Abbvie, some patents on their top drugs going out of protection in the next couple of years, reduction in sales and sales guidance in 2016 vs 2015 and lastly some backlash on the exorbitant price on their HCV drugs (more PR than anything else).
IMHO, it justified a price correction in 2016, but not a P/E of 6.