Gilead Sciences: Patience Required
Gilead Sciences (NASDAQ: GILD) reported fourth-quarter and full-year results after the closing bell Tuesday. Investors were none too pleased with the big biotech's financial results or near-term outlook. Immediately after disclosing its latest financial figures, Gilead's shares dropped 1.68% in after-hours trading yesterday.
What's ruffling the feathers of shareholders? The core issue is Gilead's anemic top-line guidance for 2020. Despite years of promising to boost sales by bringing new drugs to market, the biotech is essentially calling for revenue to slightly dip this year.
The underlying problem is that Gilead simply hasn't had much luck with the progress of its internal clinical pipeline outside of HIV and cell-based cancer therapies. Last year, for instance, the biotech's nonalcoholic steatohepatitis pipeline basically went belly up, putting it well behind the front-runners in the space.
Source Fool.com
