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Gilead Crash Sparks Biotechs' Biggest Drop In 7 Weeks To Key Technical Level
Despite headlines proclaiming better-than-expected earnings Gilead is collapsing this morning (down around 10%) on the heels of concerns that drug discounts were larger than expected (and thus 2015 revenue expectations will be lower). This has dragged the Broad Biotech index down by the most since Dec 23rd and all the way down to the key 50-day moving average.
Gilead is tumbling...
As Bloomberg reports,
Shares of Gilead Sciences Inc. dropped after the world’s biggest biotechnology company forecast 2015 revenue that will be weighed down by discounts for its blockbuster hepatitis C drugs.
Product sales this year will be $26 billion to $27 billion, said Foster City, California-based Gilead. Analysts had projected $28.5 billion on average for revenue. Discounts in the U.S. for Harvoni and Sovaldi, which treat the liver virus, will climb to an average of 46 percent this year from 22 percent in 2014.
The average discount “took investors by surprise and is higher than consensus of 25 to 30 percent or so,” said Michael Yee, a San Francisco-based analyst at RBC Capital Markets, in an e-mail.
DraggingBiotechs to the key 50DMA with the biggest drop sicne Dec 23rd...
What is perhaps just as fascinating is that Gilead tried to defend this weakness by announcing a share buyback... strongly suggesting (implicitly at least) that merger mania is over...
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Why would they bother...we have unlimited Obamacare Dollars. Everything for free...with printed money!
... is he still "Chairman"? >>> http://www.gilead.com/news/press-releases/1997/1/donald-h-rumsfeld-named-chairman-of-gilead-sciences ... no wonder it's collapsing ...
Well if they start buying back their stock now they are not buying at all time highs.
150 billion dollar market cap for a snake oil salesman. Unbelievable.
exactly. these biotechs and just like the dotcom stocks in the late 90's, nobody really understands what they do so everyone buys based on their story
... >>> "nobody really understands what they do "
... unless "swine flu" scam scare comes back in another form, these scumbag biotechs, creators of "Tamiflu" pills marketed by Roche, one wouldn't really know what they do ...
here's old news on how they made money on the "deadly swine flu" scam >>> "Now Gilead (GILD, Fortune 500) is in the spotlight again. As governments formulate their responses to the deadly swine flu outbreak, which has already claimed over 100 lives in Mexico and triggered a worldwide public health emergency, Gilead is one of the drugmakers that could benefit." >>> http://archive.fortune.com/2009/04/28/pf/gilead_tamiiflu_swine_flu.fortune/index.htm
Moar boner pills...
This is a bubble...these stocks are going to ZERO.