Research-based biopharmaceutical company Gilead Sciences, Inc. (NASDAQ: GILD) announced Monday it has named
Daniel O'Day as its chairman of the board and CEO, effective March 1.
What Happened
O'Day joins
Gilead after more than three decades of experience at Roche Holdings AG Basel ADR (OTC: RHHBY) with a focus on diagnostics, Raymond James' Steve Seedhouse said in a
note.
The executive has seen or was personally involved in multiple high-profile diagnostics or personalized medicine acquisitions at
Roche, the analyst said. While it's unlikely O'Day will "abandon" his prior experience in diagnostics, his appointment is probably
not a signal that Gilead is seeking to transform itself into a pure diagnostics company, he said.
Raymond James maintains a Strong Buy rating on Gilead's stock with an
unchanged $94 price target.
Why It's Important
Many investors expressed a concern to Raymond James that Gilead is "not hat interesting" to invest in, Seedhouse said.
It appeared that Gilead is content in growing its HIV business by single digits while building out a CAR-T business and merely
"hoping" its NASH and gilgotinib pipeline will become growth drivers, he said. That reputation could change for the better given
O'Day's experience and expectations for the incoming CEO to be open to "consider any acquisition or company evolution, however
large or small," according to Raymond James.
What's Next
Under new leadership, Gilead will be run with the "breadth of experience" that could only be possible by poaching talent from a
top-tier company like Roche, the analyst said.
Related Links:
9
Policy Catalysts For Health Care Investors To Watch Before Year's End
Raymond
James Reviews Gilead Pipelines, Takes Bullish Stance On Pharma Stock
Latest Ratings for GILD
Date |
Firm |
Action |
From |
To |
Oct 2018 |
Raymond James |
Maintains |
Strong Buy |
Strong Buy |
Oct 2018 |
Cantor Fitzgerald |
Maintains |
Overweight |
Overweight |
Oct 2018 |
PiperJaffray |
Downgrades |
Overweight |
Neutral |
View More Analyst Ratings for
GILD
View the Latest Analyst
Ratings
© 2018 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.