Biopharmaceutical behemoth Gilead Sciences (GILD) is set to report detailed results for its Phase 3 study of Trodelvy at the European Society for Medical Oncology (ESMO) Congress 2022 on September 10.
In the meantime, the company has reported that new data from this phase 3 study (TROPiCS-02) evaluating Trodelvy against comparator chemotherapies indicate a progression-free survival (PFS) in breast cancer patients (irrespective of the status of their HER2 mutation).
Bill Grossman, MD, Ph.D., Senior Vice president, Therapeutics Area Head, Gilead Oncology commented, “Trodelvy is already transforming the standard of care in second-line metastatic triple-negative breast cancer, and we are excited about its potential in other breast cancers where there is a significant need for new treatment options.”
Trodelvy has been approved in over 35 countries and is also being evaluated in additional tumor types. While the drug has not yet been approved for HR+/HER2- metastatic breast cancer, Gilead has filed a supplemental biologics license application (sBLA) with the U.S. Food and Drug Administration (FDA) based on findings from the TROPiCS-02 study.
Gilead is Betting Big on Trodelvy
Last month, Gilead agreed to acquire the remainder of global rights for Trodelvy from Everest Medicines. This includes the development and commercialization of the drug in key geographies including Greater China, South Korea, Singapore, Indonesia, Malaysia, and Thailand.
Grossman had added at the time, “Trodelvy is the cornerstone of our solid tumor portfolio and we are committed to bringing this transformative therapy to as many patients as possible.”
What is the Target Price for Gilead Stock?
Ahead of the oncology congress on September 10, Jefferies analyst Michael Yee has reiterated a Buy rating on the stock alongside a $72 price target.
The analyst anticipates investor sentiment in the stock to turn positive post the congress. Overall, the Street has a Moderate Buy consensus rating on Gilead. The average analyst price target of $71.83 indicates a 12.55% potential upside in the stock.
On top of this expected price upside, Gilead’s 4.51% dividend yield makes the stock highly attractive in the current inflationary environment. The $0.73 quarterly dividend is payable on September 29 to investors of record on September 14.
Closing Thoughts
Gilead has a robust product portfolio with names such as Truvada, Biktarvy, Yescarta, and Harvoni. Its Trodelvy franchise continues to break new ground globally. Additionally, a TipRanks Smart Score of “Perfect 10” indicates the stock could outperform the broader indices in the coming periods.
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