Gilead (GILD) is known for its R&D prowess and its strong portfolio of HIV drugs. Its $11 billion acquisition of Pharmasset changed the game. Pharmasset was in the latter stages of developing sofosbuvir, the compound used in the treatment of HCV. Shortly after the acquisition Gilead received FDA approval for its compound to be used in HCV regimens Sovaldi and Harvoni. Gilead launched Sovaldi in 2013 – one of the most successful drug launches in history. While it paid $11 billion for Pharmasset, Gilead has garnered over $50 billion in HCV sales.

Sovaldi and Harvoni have performed miracles in finding a cure for HCV. That said, the HCV runway has since declined. Competition for AbbVie’s (ABBV) Mavyret have also cut in HCV sales. In Q4 2018 Gilead’s product sales of $5.7 billion grew 4% sequentially. HCV fell by 18%, while total HIV sales were up 9%. Over 70% of total product sales now comes from HIV. As far back as Q2 2015 HCV represented over 60% of product sales. It has now fallen below 15%.

GILD has languished but the company maintains a $30 billion war chest for acquisitions. The question remains, “What is Gilead’s next move?” Shocking The Street and Torian Mitchell (COO of AYCE Network) believe Endo International and Gilead could be a marriage made in heaven. Is Endo Pharmasett 2.0?

Video: Gilead: Is Endo International Pharmasset 2.0?

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