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Gilead Sciences Inc. known for its HIV treatments is re-entering the market for cancer drugs 10 years after selling its oncology unit, according to Bloomberg.The company hopes to draw on new findings in cancer research that help pinpoint how to treat tumors. Gilead hopes to replicate its success in using a combination of drugs used to prolong the lives of AIDS patients, with cancer patients as well.
Meanwhile, Gilead’s Quad HIV pill which combines four drugs into one tablet, met its main goal in a late-stage study this week as well.
What do analysts think of this stock though?
Despite future competition from GlaxoSmithKline plc, Gilead is expected to take a larger than anticipated market share from current HIV treatments, according to Deutsche Bank analyst Robyn Karnauskas. But, GlaxoSmithKline’s fixed dose pill 572-Trii, is being compared with Gilead’s Atripla drug in a trial that is expected to be out in the second half of 2012.
While Karnauskas is bullish on Gilead, she says risks to Gilead include worse than expected safety data for Quad, poor earnings and potential regulatory risk.