Analyst Note| Karen Andersen, CFA |
We're maintaining our $81 per share fair value estimate for Gilead following first-quarter results that came in slightly below our expectations, as pandemic-related headwinds have had a longer impact on demand for Gilead's drugs than we had anticipated. That said, Gilead is also in the process of launching novel cancer drug Trodelvy, and we've raised our long-term estimates for sales of the drug with recent expanded approval. Gilead is expecting key oncology data for Trodelvy (in new indications) and multiple other programs later this year that could begin to provide more support for long-term growth beyond HIV, which would further bolster the wide moat that Gilead has built with its infectious disease portfolio. We continue to see shares as undervalued at recent prices.