Ronnie Moas Initiates Gilead At Buy; Models Show It's A Top 10 S&P Stock

• Gilead Sciences, Inc. (NASDAQ: GILD) shares have declined 29.82 percent over the past six months, to a low of $82.705 on Tuesday.
• Ronnie Moas of Standpoint Research has initiated coverage of the company with a Buy rating and price target of $110.
• According to Moas’ 155-variable computer model Gilead Sciences currently is among the the top 10 names in the S&P 500.

Analyst Ronnie Moas noted that at 30-45 percent below its 52-week high, the stock appears attractive at present.

“If GILD opens higher and call option premiums are high, investors/traders can sell call options against GILD shares and lower the break-even point,” Moas went on to say.

Related Link: Gilead Trounces Hep C Estimates; Harvoni International Footprint Nearly Equals U.S.

Moas also mentioned that American pay more for medication as compared to the rest of the world, with the International Federation of Health Plans estimating that “Americans pay anywhere from two to six times more than the rest of the world for brand name prescription drugs.”

Moreover, cancer and specialty drugs are usually the most expensive, although the high prices are also found in commonly used medication as well.

“According to PhRMA, the pharmaceutical trade group, high prices are a reflection of the research and development costs it takes to bring a drug to market,” the Standpoint Research report said.

In fact, PhRMA estimates that on average, it takes over 10 years and more than $2.6 billion dollars to bring a drug to market. The agency also noted that for every successful drug, there are several that do not make it to market.

Moas stated that if Medicare, one of the largest medication providers in the U.S., was provided the ability to negotiate by law, it could help drive down drug prices.