Restructuring also includes a headcount reduction in Europe. This step was taken due to a dip in the European market, as Siemens already generates maximum revenue there. The company is expecting to save $2.64 billion by November 2013 through its cost-restructuring program, which is likely to be completed by 2014.
Two drugs will drive this company to new heights
Recently, the FDA granted a priority review to Gilead Sciences, Inc. (NASDAQ:GILD) for its Hepatitis C drug, Sofosbuvir. The drug is likely to receive approval in December 2013. Sofosbuvir helps to cure liver damage and is a treatment for patients with liver transplants. About 170 million people suffer worldwide from liver damage, 4 million of whom are in the US. Hepatitis C is an increasing cause of liver cancer in the US. The company added Sofosbuvir to its pipeline after the acquisition of Pharmasset in 2012 for $11.1 billion. It is estimated that after approval, the company’s annual sales could be $6.42 billion by 2017. The reasons of high estimation are Sofosbuvir’s high potential to cure liver damage, and its reduced therapy duration.
Stribild is the third medicine developed by Gilead Sciences, after Atripla and Truvada, to treat adults suffering from HIV. It is comprised of four other Gilead compounds. Stribild was launched in August 2012 in the U.S. market and contributed $92.1 million of revenue in first quarter of 2013, as compared to $40 million in the last quarter of 2012. Stribild is as effective as the other two medicines; since Gilead now produces two compounds used in Stribild which were previously outsourced, the drug’s production cost is now lower, thereby increasing profits. The company also received approval from the European Commission on May 29, 2013. It is expected that Stribild will be available on the European market by mid-2014. Gilead Sciences is expecting to generate revenue of $2.7 billion by 2016, as forecasts suggest the HIV therapeutics market will increase at a 7% compound annual growth rate from 2011 to 2018.
Conclusion
Amazon.com, Inc. (NASDAQ:AMZN)’s expansion in e-commerce and advertising through mobile apps will generate high revenues.
Siemens AG (ADR) (NYSE:SI)’s policy of cost restructuring and the big Brazilian contract for infrastructure development will accelerate its sales.
With the launch of Sofosbuvir and Stribild tablets by Gilead Sciences, Inc. (NASDAQ:GILD) to cure diseases like Hepatitis C and HIV, the company’s sales and market share look poised for growth.
All three of these stocks are a buy.
The article Why You Should Consider These Three Stocks originally appeared on Fool.com and is written by Shweta Dubey.
Shweta Dubey has no position in any stocks mentioned. The Motley Fool recommends Amazon.com and Gilead Sciences. The Motley Fool owns shares of Amazon.com. Shweta is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.
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