General presentation of Gilead Sciences:
The American group Gilead Sciences is a specialist in the development, production and sale of therapeutic products. The group mainly sells antiviral drugs, in particular against HIV, but also research and development services, subcontracted manufacturing of pharmaceutical products.
Gilead Sciences generates most of its turnover in the United States and Europe.
The Gilead Sciences share price is currently listed on the Nasdaq Select Market in the United States and is included the calculation of the Nasdaq 100 stock market index.
The historical stock market charts of this share show an interesting volatility in the short term with well-defined micro-movements. In the long term, there has been a steady upward trend since January 2013, after a slight down, and the achievement of an all-time high at $ 119.79 in July 2015 followed by a slight market correction.
Knowing the competition of the Gilead Sciences stock:
The Gilead Sciences group is currently one of the largest pharmaceutical companies in the world. It ranks sixth in the ranking of the largest groups in this sector worldwide. As a result, it's in competition with several other companies which share the coveted drugs and medical treatments market.
To date, Gilead Sciences has been outranked by the Pfizer group, leader in its sector, but also by the other giants such as French Novartis, Swiss Roche, Sanofi and Merck.
Gilead isn't positioned at the end of the ranking however, since it achieves more turnover than some of its direct competitors like Johnson & Johnson, GSK (GlaxoSmithKline), Astrazeneca or Abvie.
It's important to follow the news of this sector closely in order to integrate the competition into your fundamental analyses of the Gilead Sciences stock. By doing so, you'll be able to better understand the challenges of market share and the innovations of these companies.
The strategic alliances set up by the Gilead Sciences group:
- Bristol-Myers Squibb: In 2004, Gilead Sciences formed a joint venture with the American group Bristol-Myers Squibb to develop and sell a fixed-dose combination of three HIV drugs called "triple therapy".
- Johnson & Johnson: In 2014, the Gilead Sciences group secured a partnership with a subsidiary of Johnson & Johnson in Ireland aimed at selling a new triple therapy against HIV.
- Galapagos: In 2016, following the agreement of the United States Federal Trade Commission, a partnership with the Galapagos group was signed by Gilead Sciences regarding Filgotinib. Gilead paid the Galapagos Company for its license fee and invested $ 425 million in the company, obtaining approximately 15% of its shares.
Benefits and drawbacks of Gilead Sciences shares as a stock market asset:
To understand the possibilities of the Gilead Science share increasing on the stock market, you need to be aware of the strengths of the company along with its weaknesses. Let's start by summarizing the strengths of the group.
First of all, Gilead Sciences has proven experience in innovation and the development of new products. The group's clientele shows a high level of satisfaction, particularly thanks to the customer relationship management department set up by the group, which contributes to the good brand image of the company.
Gilead Sciences can also count on a highly qualified workforce thanks to its advanced training and learning programs in which the group invests large sums each year.
The group also benefits from the strong diversity of brands in its portfolio with numerous investments over the past few years. The brands in question allow the company to extend its activities to new types of products.
Another advantage of this company is the reliability of its suppliers built on strong foundations which allows the group to obtain raw materials quickly and without a hitch.
Gilead Sciences has also shown true performance in new markets due to its expertise know-how in infiltrating them easily. With this expansion strategy, Gilead Sciences has been able to diversify its sources of income and limit the risks linked to economic cycles in the markets in which it is already present.
Finally, a true asset of the group is the significant distribution network which it has to sell its products. In addition, a very strong community of resellers also works for the company. On top of marketing Gilead Sciences products, the sellers also invest in training the sales teams to promote these products effectively.
The drawbacks and weak points of Gilead Sciences shares as a stock market asset:
Obviously, the Gilead Sciences group doesn't only have strengths, it also has its weak points which you should also analyse before taking your position on this stock market share. Here is a summary of the weaknesses of this company.
First, Gilead Sciences has a high workforce attrition rate compared to its competitors, which generates additional training and development costs.
There's also a lack of choice in the range of products marketed by Gilead Sciences which often leads to a loss of customers looking for more diversity. As a result, the group has recently lost market shares in niche categories due to the arrival of new competitors on the market.
It would also be good for Gilead to invest more in new technologies aimed at integrating processes at all levels, particularly regarding its geographic expansion.
Another weak point of Gilead Sciences is its organization which does not really coincide with the business model targeted by the company. This organization does not promote the expansion of certain adjacent product segments. The same goes for the group's financial forecasts with asset and liquidity ratios suggesting that the use of the company's liquidity is not at its maximum efficiency.
Finally, the company's last weak point involves the difficulties it encounters when integrating companies with a different work culture. As a result, certain merger operations end in failure.