Goldman Sachs Gilead Sciences (GILD.US): Management Meeting Frames Pipeline Portfolio Strategy
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Goldman Sachs reiterates a Buy rating on Gilead Sciences (GILD.US) following a management meeting that clarified the company's pipeline portfolio strategy. Management emphasized a strategic resource allocation heavily concentrated on oncology and HIV, with plans to direct over 60% of research and development spending to these two core therapeutic areas. In oncology, the firm anticipates Phase III data for Trodelvy in HR+/HER2- breast cancer during the second half of 2026, with management expressing cautious optimism. Within the HIV franchise, lenacapavir is advancing in Phase III trials as a twice-yearly injectable regimen, with regulatory submission targeted for 2027. Gilead intends to continue supplementing its internal pipeline through targeted mergers, acquisitions, and licensing agreements, particularly focusing on oncology and inflammation. The company reaffirmed its 2026 revenue guidance of 27 to 28 billion USD, with HIV products contributing approximately 17 billion USD. Additionally, Gilead plans to execute at least 5 billion USD in share repurchases during 2026 while maintaining an annual dividend of 3.08 USD per share. Although the company has discontinued internal development for NASH, it remains open to evaluating external opportunities. Goldman Sachs believes the current valuation does not fully reflect the potential of these emerging therapies.