EFTA01446908.pdf

Deutsche Bank Markets Research Rating Company 6 March 2014 Buy Gilead Sciences Alert Breaking News North Anterica United States Re...try t 4. enOn Tgte; Price at 5 Mar 2014 (USD) 82.87 Health Care GILD.00 GILD US NMS GILD Price target 132.00 Biotechnology 52-week range 83.95 - 44.38 Atripla recall is NOT an issue - DB Research Ana at thoughts post mgmt convo We have gotten many questions around Gilead's Atripla and the voluntary recall that posted to the FDA site. We spoke to mgmt and here is their take .ketaia 'coking MGMT COLOR. Research Analyst • On a typical quality check Gilead found small particles and proactively issued a voluntary recall of 39K bottles ONLY. Gilead took it upon themselves to contact the agency and issue the voluntary recall of these lots. :on Market cap (USO) 125.731.5 • This is from their 3'd party manufacturer in China that only makes Shares outstanding (n) 1.517.2 Atripla. Gilead has multiple manufacturers for Atripla. Free float 1%) 100 • Management reiterates that this is a very minor issue The company has Volume (5 Mar 2014) 2.096.512 more than enough Atripla supply. Option volume fund. shrs.. 1M 678.195 avg.) Here is the link to the FDA report seise omen* an htto://www.accessdataida.qov/scriots/enforcement/enforce rnt-Product- Tabs cfm7action-select&recall number-D-1090- Key data —"— 20148m=03052014&langreng EYE 12/31 2013A 2014E 2015E Nle \•vould be buyers on the weakness today. The fundamental story on base 10 EPS 0.48 0.98 biz and Sovaldi buy case intact. Reiterate Buy and $ 132 TP. 20 EPS 0.50 1.28 30 EPS 0.60 1.03 40 EPS 0.55 0.96 FY EPS (USO) 2.13 4.25 7.76 P/E Ix) 26.3 19.5 10.7 Soave Dutch* Sent • includes Me •flgoci alfurl IR requmg s. apensinp ae 'tea Deutsche Bank Securities Inc. The views expressed above accurately reflect the personal views of the authors about the subject companies and its(their) securities. The authors have not and will not receive any compensation for providing a specific recommendation or view. Deutsche Bank does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. FOR OTHER IMPORTANT DISCLOSURES PLEASE VISIT http://gmdb.com/ger/disclosure/Disclosure.eqsr?ricCode-GILD.OQ MICA(P) 054/04/2013. CONFIDENTIAL — PURSUANT TO FED. R. CRIM. P. 6(e) DB-SONY-0101342 CONFIDENTIAL SDNY_GM_00247526 EFTA01446908