The valuation multiples in biotechnology companies keep growing exponentially. And even though companies like Novavax (NASDAQ:NVAX) added 2270% in market cap year-to-date and Moderna rose 220%, investors will want to own Gilead (NASDAQ:GILD) for the long-term.
Gilead Sciences is the only antiviral drug selling in significant volumes on the market today. The company posted additional data that showed a 62% mortality risk reduction. 74.4% of treated patients recovered within 14 days, compared to 59% in those receiving standard of care.
Stuck in a trading range of between $73 - $76, the stock is not getting much investor attention. If vaccine developers take longer than though to bring a product to market, Gilead shares may re-visit the $85.97 intra-day peak. It is also trading far below the $100+ levels from a few years ago.
Remdesivir may save lives and is the best option people may have at this time. Gilead’s fair value is $105.01. It scores highly on quality and value.
Growth is healthy, too. And while the market looks to potentially fast-growing emerging vaccine developers, Gilead’s core business continues to produce profits. It has the cash flow to fund Remdesivir research. Sales of the drug should offset operating costs while its development will fuel future demand.
