EFTA01462405.pdf

Deutsche Bank Markets Research Rating Buy North America United States Health Care Biotechnology Company Gilead Sciences Alert Reuters GILD.OQ Bloomberg GILD US Exchange NMS Ticker GILD Atripla recall is NOT an issue - DB 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 MGMT COLOR: 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. This is from their 3rd party manufacturer in China that only makes Atripla. Gilead has multiple manufacturers for Atripla. Management reiterates that this is a very minor issue The company has more than enough Atripla supply. Here is the link to the FDA report http://www.accessdata.fda.gov/scripts/enforcement/enforce_rpt- ProductTabs.cfm?action=select&recall number=D-10902014&w=03052014&lang=eng We would be buyers on the weakness today. The fundamental story on base biz and Sovaldi buy case intact. Reiterate Buy and $132 TP. Date 6 March 2014 Breaking News Price at 5 Mar 2014 (USD) Price target 52-week range Robyn Karnauskas Alethia Young Research Analyst EFTA01462405 (+1) 212 250-5751 [email protected] Stock & option liquidity data Market cap (USD) Shares outstanding (m) Free float (%) Volume (5 Mar 2014) Option volume (und. shrs., 1M avg.) Source: Deutsche Bank Key data FYE 12/31 10 EPS 20 EPS 30 EPS 40 EPS FY EPS (USD) P/E (x) 82.87 132.00 83.95 - 44.38 125,731.5 1,517.2 100 2,096,512 678,195 2013A 2014E 2015E 0.48 0.50 0.60 0.55 2.13 26.3 0.98 1.28 1.03 0.96 4.25 19.5 7.75 10.7 Source: Deutsche Bank * Includes the impact of FAS123R requiring the expensing of stock options. Deutsche Bank Securities Inc. EFTA01462406 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 http://gm.db.com/ger/disclosure/Disclosure.eqsr?ricCode=GILD.Op MICA(P) 054/04/2013. PLEASE VISIT EFTA01462407