Why Gilead, which has been sluggish for a decade, is again getting hot Wall Street attention.

💊 Why Gilead, which has been sluggish for a decade, is again getting hot Wall Street attention.

Do you know the word Gilead Paradox?

Gilead Sciences, which had a share price of $122 as a cure for hepatitis C in 2015.
However, sales plummeted because the patients disappeared “because they treated so well.”
It was unprecedented for a new drug of destructive innovation to cure the disease itself.

However, Gilead’s stable cash flow disappeared as the pool of patients to be treated paradoxically disappeared.
But now this company, which has been forgotten for a decade, is now back in the spotlight on Wall Street.

📊 What has changed?

In the past, 90% of sales were treatment for hepatitis,
Now, HIV treatments are 70% and oncology is rapidly growing.
In particular, the demand for the HIV drug “Yesztugo” is exceeding expectations,
Analysts have raised their target price to $127. (Currently up about 14%)

💡 Gilead’s dilemma in the pharmaceutical industry and the cycle shift

“Cutting” is best for patients, but for companies, it means a drop in sales.
So, pharmaceutical companies have no choice but to focus on “chronic disease management” drugs rather than cure.
Gilead has now reorganized its business around drugs that need to be taken for life like HIV,
As a result, we have a predictable cash flow.

Now, Gilead is entering the “maturity” of the industrial cycle from biotech, which relies on innovative new drugs, to a pharmaceutical company that generates stable cash flow.

🎯 From an investor’s point of view

Undervalued area at 13x P/E in 2026
Dividend yield is about 4%
highlighting one’s attractiveness as a defensive player
Additional growth is possible as HIV prevention market enters

However, rather than expecting high growth
The view of “stable dividend + gradual recovery” is appropriate.

In the 📌 article, how Gilead’s business transformation took place,
And how the structural contradictions of the pharmaceutical industry have implications for investment
I analyzed it in detail.