Quality co, low vals and stable dividend. risk/concern is tied
entirely to drug pricing and the regulation change. risk to E, is
the unknown tied to price cuts, if any.
normalized multiple has been closer to 15x. (established pharma
12x) so at 6x, street is expecting eps to go down in
half.
probably priced in the bad news, but its hard to know what the
regulatory costs/hurdles will be.
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Quality co, low vals and
GILD
Posted by jdaswani on 9th of Dec 2016 at 08:32 am
Quality co, low vals and stable dividend. risk/concern is tied entirely to drug pricing and the regulation change. risk to E, is the unknown tied to price cuts, if any.
normalized multiple has been closer to 15x. (established pharma 12x) so at 6x, street is expecting eps to go down in half.
probably priced in the bad news, but its hard to know what the regulatory costs/hurdles will be.