Biotech Values

[DewDiligence]

GILD—Do you know offhand how big their shelf is?

The new bond issue per se is $1B (http://www.reuters.com/article/2011/03/23/gileadsciences-debt-notes-idUSN2361273520110323 ), but you asked about the shelf registration.

The answer is that this is not a shelf registration in the usual sense that we encounter with loss-making biotech companies; rather, GILD’s bond issue is being made under a so-called automatic shelf registration (ASR) filed on Form S-3ASR:

http://sec.gov/Archives/edgar/data/882095/000119312511074544/ds3asr.htm

A filing on Form S-3ASR is automatic in the sense that that is deemed to be accepted by the SEC without any feedback from the Agency.

In other words, $1B of bonds is probably all that GILD is going to raise for the time being, but they could raise more money at any time.