STOCKWATCH: Gilead damned for doing the right thing
This article was originally published in Scrip
Executive Summary
The last thing you need on a Friday afternoon is for one of your biotech holdings to open the trading session down by more than 7%. And as the company in question was the large capitalization and profitable antiviral specialist Gilead Sciences, I did wonder if a new global conflict rather than a Ukrainian ceasefire had just been announced. But in this case, the news that took Gilead's share price down was entirely of its own making and, even worse, the reaction was in response to Gilead's best of intentions.
You may also be interested in...
Stock Watch: Risk And The Pharmaceutical Discount Rate
In contrast to the SEC’s view that public companies’ regulatory filings give investors all the information needed to make an investment decision, the discount rate used to value a company may not reflect all its risks.
Stock Watch: Pharma Businesses That Leave Consumer Behind
Healthcare conglomerates that divorce consumer, animal health and even generics businesses from their pure-play branded pharmaceutical groups could leave a less diversified and riskier sector in uncertain times. But the advantages are apparent.
Stock Watch: Acadia And Amylyx Trial Failures Were No Shock
The overused phrase ‘pipeline in a product’ translates to ‘disappointment in a product’ when the number of indications in the pipeline contracts towards zero.