Gilead Sciences (NASDAQ:GILD) Stock Still Worth Investing In?

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By Thomas Copeland on December 9, 2014 BioPharma

It isn’t surprising when we get to hear about fluctuating dips in the pharmaceutical industry. Gilead Sciences (NASDAQ:GILD)’s stock, which has been faring well, in fact great, for the past 11 months and hit its all-time high in November, is now waning since the past three weeks. What’ll hurt Gilead Sciences (NASDAQ:GILD) even more is that the investors are gradually dumping its stock and are investing in the rival company AbbVie (NYSE:ABBV).

The reason is perhaps that Gilead Sciences (NASDAQ:GILD)’s drug Harvoni might be overpriced as considered to the drugs AbbVie (NYSE:ABBV) is offering. That isn’t sitting well with investors. Investors are urging AbbVie (NYSE:ABBV) to undercut Harvoni’s price. The hepatitis C therapies works on the mechanism that the new drug replaces the old one. Vertex Pharmaceuticals (NASDAQ:VRTX)’s hepatitis C drug called Incivek sales plummet after Sovaldi was approved.

Same goes for Johnson & Johnson’s (NYSE:JNJ)’s Olysio when Harvoni gained the Food and Drug administration’s approval. The reason Harvoni will be hard to replace is because the drug has an excellent cure rate of 94 percent. Other drugs have tried to oust Harvoni by lowering the time duration of the therapy but that hasn’t worked at all. AbbVie (NYSE:ABBV) might have something to say with the inexpensive price tag on its drug but we don’t think it will be enough to wipe out Harvoni completely.

The investors are probably oblivious to the amazing pipeline Gilead Sciences (NASDAQ:GILD) holds. The company made several acquisitions in the past couple of years in order to expand its portfolio. Now it has got several drugs in the pipeline that can prove to be instant hits in the market. These drugs are for blood-based diseases. If anyone wants to measure the success of Gilead Sciences (NASDAQ:GILD), they should just take a look at what Gilead Sciences (NASDAQ:GILD) is holding for the future.

Gilead Sciences (NASDAQ:GILD) is attractive to the long term investors. It’s true the company lost 10 percent in one month but a visionary would always look ahead. We’re looking ahead and we see Gilead Sciences (NASDAQ:GILD) coming out with marvelous therapies that will hike the stock price and make Gilead Sciences (NASDAQ:GILD) one of the hottest companies to bet on, not only in the pharmaceutical category, but all of the stock market.

Our advice to Gilead Sciences (NASDAQ:GILD) will be to keep working on the drugs it has under development, because that is the only key to make sales in the pharmaceutical business. Once the drugs start rolling out to the market, revenue will start pouring in. Gilead Sciences (NASDAQ:GILD) shouldn’t be disturbed by the 10 percent hiccup as it can be easily covered in the oncoming months, given that the company takes the right steps at the right time in the right direction. Gilead Sciences (NASDAQ:GILD) should also be wary of AbbVie (NYSE:ABBV) that is closing in on the company.