10-26-2015, 07:53 AM
(10-25-2015, 09:16 PM)Dividend Watcher Wrote: If it were me, I'd add to my GILD position here. Since I don't foresee a big drop in the earnings any time in the near future, I'm wondering how long it will take for Mr. Market to realize GILD is just gushing cash and has a bright future. I still don't get it.
I own GILD in my IRA and I'm "never" getting rid of it but here are a few points regarding the future of their revenue:
Quote:Growth is slowing due to price push back from insurance companies for the very flagship hepatitis C drugs Harvoni and Sovaldi we just discussed. Further, The Motley Fool reported that AbbVie's competing combination drug, Viekira Pak, is starting to capture larger market share. To quote the article, "Put simply, we may have already seen the high-water mark for Gilead's hep C franchise."
Worse yet, Gilead's HIV drugs have their critical patents expiring in the period 2018 to 2022. When patents expire, those same drugs become available under generic labels.