Gilead: Top Biotech Fights HIV

09/26/2003 12:00 am EST

Focus:

Ken Kam

CEO, Marketocracy, Inc.

Marketocracy monitors the activity of some 60,000 virtual portfolios. It then monitors the stocks bought by those with the best records. These elite investors have been buying biotech play, Gilead, which is also an ongoing 'buy' from top advisor Louis Navellier, editor of The Blue Chip Growth Letter. Here's the latest on Gilead.

"Gilead Sciences (GILD NASDAQ) is a biopharmaceutical company that commercializes therapeutics to advance the care of patients suffering from life-threatening diseases worldwide," notes Marketocracy's Ken Kam. "Its research and clinical programs are focused on anti-infectives, including anti-virals and anti-fungals. The best investors under our coverage increased their holdings of the stock by 16%, while the rest of the investors decreased their holdings by 3%. Indeed, the best investors first increased their position in GILD in early August when the price dropped more than 10%. When JP Morgan downgraded GILD on Sept. 16th, the price dropped 6% and our best investors bought more. Then on Sept. 19 when the price dropped another 3% our best investors bought again, putting GILD in the top 1% of their holdings."

"In the past 20 months, Gilead has won FDA approval for three promising new drugs," says Louis Navellier, in The Blue Chip Growth Letter. "The FDA recently approved Emtriva, which can treat HIV patients in conjunction with Viread, which is another HIV medication. Now Gilead is working on a drug that would combine Emtriva and Viread into a single pill. AIDS patients take a lot of pills, so the fewer pills they have to take, the more likely that they’ll comply with doctors’ orders. Gilead is aggressively capturing market share from GlaxoSmithKline’s Combivir, which is a combination of 3TC and AZT used to fight HIV. Glaxo’s AZT is the oldest drug approved for HIV treatment, but plenty of patients and HIV viruses have become resistant to AZT. That’s why Gilead continues to gain on Glaxo in the battle to suppress HIV. I anticipate that it will continue to capture market share and post steady sales and earnings for at least the next couple of years."

Related Articles on