Better Buy: Amgen vs. Gilead Sciences

Gilead Sciences (NASDAQ: GILD) has been struggling recently as the company's hepatitis C drug business is no longer performing as well as it used to. Last year, the pharma stock gained a meager 3.88% in part due to its declining hepatitis C Virus (HCV) drug sales.

By contrast, Amgen's (NASDAQ: AMGN) stock gained a healthy 23.84% last year, despite some of the company's products -- such as Neulasta, which treats a lack of white blood cells caused by chemotherapy -- encountering stiff competition from biosimilars. Will Amgen continue to outperform Gilead Sciences moving forward?

Though Gilead Sciences' HCV revenue is declining, this segment still includes products such as Harvoni and Epclusa, which generate decent sales. However, Gilead Sciences makes the bulk of its revenue from its HIV lineup. In particular, the company's HIV prevention medicine Biktarvy has been performing well. Gilead Sciences HIV products also include Genvoya, Descovy, and Truvada. But the U.S. government filed a lawsuit against Gilead Sciences last year alleging that Descovy and Truvada infringe on patents held by the U.S. Department of Health and Human Services (DHHS). Not much has come of this lawsuit yet.

Source Fool.com