Biotech Values

[DewDiligence]

GILD—The original idea with the "quad" was to bring all future HIV profits in-house. A move away from partnered Atripla and a chance to lock up the market. Btripla seemed like a step backward (using Tibotec's TMC278) but an understandable hedge against an unforeseen safety or development issue with the quad at the time. Now there's plans for another quad pill using Tibotec's Prezista and IMO another step backward. This doesn't say much for the R&D strategy at GILD and explains why the stock is trading at such a low multiple.

That’s unduly harsh, IMO. GS-7340 gives GILD a shot at developing what I’ll call Quad Prime: Elvitegravir + Cobicstat + Emtriva + GS-7340. If it works, this 4-in-1 pill will be 100% owned by GILD and will have patent protection for many years to come.