Deutsche upgrades Gilead to Buy on ability to offset patent cliffs

Deutsche Bank upgraded Gilead (GILD) to Buy from Hold with a price target of $120, up from $80. The company’s core HIV treatment franchise should drive steady revenue growth deep into to the 2030s, the analyst tells investors in a research note. The firm says lenacapavir’s pre-exposure prophylaxis launch in the summer 2025 has the Street’s near-term attention, and more than offsets Descovy’s 2031 patent expiration. For Biktarvy’s 2033 patent cliff, Deutsche believes Gilead’s pipeline of long-acting orals and injectables can combine for $19B of HIV treatment revenues by fiscal 2023. The company’s “optionality” gives it scarcity value relative to its biopharma peers that are approaching or in the midst of patent cliffs, contends the firm.