The Key to Growth For Gilead Sciences, Inc. (GILD) Earnings

In the HIV treatment field, Gilead might face long-term storm clouds. Johnson & Johnson (NYSE:JNJ) and GlaxoSmithKline plc (ADR) (NYSE:GSK) have looked at a new combination HIV therapy that would require injections only monthly or perhaps even quarterly, avoiding some of the possible liver-related side effects that have been associated with Gilead’s oral Stribild treatment. Yet the treatment is early in the development process and could have years to go even if successful.

In the Gilead earnings report, watch to see whether the company makes any comments on the possible bidding war for Onyx Pharmaceuticals. With Gilead Sciences, Inc. (NASDAQ:GILD) rival Amgen having made a bid that Onyx rejected, Onyx is looking for higher bidders elsewhere, and a buyout would give Gilead greater exposure to the cancer-treatment space. Yet with a dearth of cash, the buy would tax Gilead’s finances and remove flexibility to consider other strategic options. Given so many other promising prospects, Gilead doesn’t need to buy Onyx in order to support earnings growth in the future.

The article The Key to Growth For Gilead Earnings originally appeared on Fool.com and is written by Dan Caplinger.

Fool contributor Dan Caplinger has no position in any stocks mentioned. You can follow him on Twitter @DanCaplinger. The Motley Fool recommends Gilead Sciences and Johnson & Johnson. The Motley Fool owns shares of Johnson & Johnson.

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