Key insights
- Cantor Fitzgerald reiterated an Overweight rating on Gilead Sciences (GILD) following positive HIV trial data for its weekly islatravir/lenacapavir combination. While Gilead also reported mixed results in lung cancer trials, the analyst expects the HIV data to be the primary driver for GILD shares. The firm views the lung cancer data as more relevant to Merck shareholders. Gilead's stock appears undervalued based on InvestingPro metrics, offering a dividend yield and potential upside from the reiterated price target.
Investing.com - Cantor Fitzgerald reiterated an Overweight rating and $155.00 price target on Gilead Sciences stock (NASDAQ:GILD) following clinical trial results announced by the company. The target suggests upside potential for the biotech giant, which currently trades at a P/E ratio of 17.4 with a market capitalization of $159 billion. According to InvestingPro analysis, the stock appears undervalued based on Fair Value metrics, with shares offering a 2.56% dividend yield.
Gilead Sciences and Merck announced positive top-line data from the phase 3 ISLEND-1 and ISLEND-2 trials of weekly islatravir/lenacapavir for HIV treatment. The companies also reported negative data from the EVOKE-03 study of Trodelvy plus Keytruda compared to Keytruda monotherapy in first-line PD-L1 ≥50% non-small cell lung cancer patients.
Cantor Fitzgerald analyst Carter Gould said both sets of data played out largely as expected. The firm expects Gilead shares will largely shrug off the updates.
The analyst noted the EVOKE-03 results are expected to be of more interest to Merck shareholders. Cantor Fitzgerald said it doubts the data will move the needle on the discussion around Merck’s case for sac-TMT’s differentiation versus earlier Trop2 ADCs.
The firm’s assessment follows OptiTROP-Lung-05 data and presentations at ASCO that underscored Merck’s positioning for its therapy.
In other recent news, Gilead Sciences reported that its Phase 3 IDEAL study for the drug Livdelzi (seladelpar) met its primary endpoint. The study demonstrated significant improvement in patients with primary biliary cholangitis, achieving normalization of alkaline phosphatase levels compared to a placebo. Additionally, Gilead, in collaboration with Merck, announced that their investigational once-weekly oral HIV treatment met the primary efficacy endpoint in two Phase 3 trials, ISLEND-1 and ISLEND-2. Meanwhile, Gilead and Merck decided to discontinue the Phase 3 KEYNOTE-D46/EVOKE-03 study for a lung cancer treatment, following a recommendation from an external Data Monitoring Committee.
In other developments, Gilead and Lakefront Biotherapeutics completed the acquisition of Ouro Medicines, aiming to advance T cell engager therapies for autoimmune diseases. The acquisition involved a payment of $1,675 million with potential additional milestone payments. On the analyst front, RBC Capital reiterated a Sector Perform rating for Gilead Sciences, citing the potential of its in vivo CAR-T therapy technology to transform the cell therapy sector. These updates reflect Gilead’s ongoing strategic and clinical efforts in various therapeutic areas.
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