June 25, 2007

Gilead Splits

Gilead started trading post-split today. It announced back in May that it would split 2:1, so now it is trading around $39. That adjusts my target price to $45.
The company also annouced that Viread, one of its HIV drugs met its primary endpoint goal in Phase III trials to treat Hepatitis B. Gilead said it will file a marketing application with the FDA to allow Viread to treat Hep-B.
If Viread were to gain this approval, it would mostly have a cannabalizing effect for the company because Viread would just replace Gilead's Hepsera, which Viread was compared to (and performed better than) in trials.
None the less, it is always good to see a company improving its offering of products.