Fermion
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One interesting thesis on Gilead is that they spin off the Hep C business, which has great profits but declining growth, and keep the core HIV plus the pipeline (NASH, etc.).
The Hep C business is probably worth $40B to $50B even with the declining revenues. The HIV drugs had a growth of 17%, but because of the decline in new HCV business, they had an overall decline in YoY revenue. If they dump the HCV and bring the market cap down to about 60B with $15B revenue from HIV and 17% growth, the stock will sport a PE much greater than the current 7.
Just one of the many ways the current $79 share price could make you a ton of money.
The Hep C business is probably worth $40B to $50B even with the declining revenues. The HIV drugs had a growth of 17%, but because of the decline in new HCV business, they had an overall decline in YoY revenue. If they dump the HCV and bring the market cap down to about 60B with $15B revenue from HIV and 17% growth, the stock will sport a PE much greater than the current 7.
Just one of the many ways the current $79 share price could make you a ton of money.