Oppenheimer Discusses Phase III Results From Gilead

Oppenheimer & Co. is out with a research report on Gilead GILD, as the company released ph.III results for GILD's QUAD pill. It has an Outperform rating and a $45 price target. In a note to clients, Oppenheimer writes, "With ph.III results for GILD's QUAD pill vs. Truvada/Reyataz (Study 103) and, more importantly, Atripla (Study 102) expected in 3Q11/4Q11, we spoke with HIV specialists regarding expectations for the ph.III results and likely adoption of the FDC. Physicians we interviewed generally expect QUAD will show numerically better viral suppression and better tolerability vs. Atripla in Study 102. Surprisingly, they believe QUAD only needs to show non-inferior efficacy/better tolerability vs. Atripla to achieve significant penetration in front-line HIV. Based on this input, we believe Street consensus is overly cautious regarding the necessary quality of the ph.III QUAD results. We would be buyers of GILD ahead of these results, as believe QUAD will provide long-term stability to GILD's market-leading HIV franchise." Shares of GILD closed at $41.27 yesterday.