I think GILD is higher risk than you bc i think HCV can only go down at this point - more through pricing pressure than volume, but volume too sooner or later. It could be a great stock, but i don't think it will be great because of HCV and I think the lower PE is appropriate given the HCV market dynamics. e.g right now sovaldi has 100% gen-3 (i.e. all pts get sovaldi/daklinza), but ABBV can easily get half of that if the profile for next gen holds up. That's a 10% or so step down in total HCV sales for GILD. GT1 is going to get more competitive for them too..if JNJ has good results this puts more pressure on both price and volume, albeit that is further away. MRK triple regimen is a potential threat too. and given GILD ahs such dominant share it only stands to reason that more share will be lost from GILD than ABBV.
ENTA has such a small market cap and still low burn that after 3 or so years of multibillion sales they very well could have more cash than the present EV and residual royalty stream and pipeline is then pure upside
I know GILD is popular around these parts, but I think more is riding on the pipeline and any future acquisition than most think - although i do think they deserve a premium just based on track record and quality of management
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