Idaho, nice to be able to consider a $300,000 position "nostalgia". I can't say I'm in the same situation, but I'm not complaining. My only Trodelvy exposure at the moment is via shares of Royalty Pharma.
As for Trodelvy, I explain it this way. There's a chance this is the next Keytruda. More likely, it is Keytruda-lite. Which means it is both a blockbuster business and a drug helps a huge number of people.
As for Gilead, I do think it is pretty attractive at this level. My sense, and its nothing more than that, is Gilead is trying to figure out what they want to be. What does this mean? It means they'll acquire assets in fields that fit their core and get rid of assets which do not fit their core. I suspect Gilead wants to become a very major player in oncology and IMMU is a big step in that direction.
Does this mean they'll sell certain business units (Descovy, for example)? They could. There is no reason to sell anything at a discount, there's time to wait for the right sort of offer. But if they are 'sharpening their focus', selling some things makes sense. I think oncology tends towards higher P/E ratios.
When I look at what Gilead does now, the phrase mishmash comes to mind. I suspect the CEO is going to change this.
Is Gilead a buyout candidate? Sure. But its a big gulp for anyone who wants it. Is Roche the top candidate to buy Gilead? No idea, but the list is short. That said, I can also see Gilead in a 'merger of relative equals' situation. One name which comes to mind -- Seagen (formerly Seattle Genetics). |
