John Milligan became the CEO of Gilead Sciences, Inc. (NASDAQ:GILD) in March 2016. In April 2016, the company reported that its quarterly HCV revenues declined over 12% to $4.294 billion from $4.892 billion, after growing from almost nothing in FY2013. They are still declining. Milligan offers no overlook of any improvement on that front.
Gilead’s HCV juggernaut of Harvon/Epclusa/ Sovaldi hopefully will be crowned with FDA nod of VEL/VOX/ SOF, and it is not vanishing any time soon. However, it is in a long-term decline. Growth for the HCV unit is not in the cards. The fact that company has been vigorously growing and expanding its HIV assets never appears to draw appropriate attention.
In a recent CNBC interview, CEO Milligan determined his goal for company for 2018; he intends to change the conversation. The interview began with Meg Tirrell questioning and moving to Melissa Lee. Lee closed out her part with a question illustrating the combination of Gilead’s latest hire of Andy Dickinson from Lazard and potential return as the stars aligning for an M&A agreement.
Milligan responded, mentioning that Dickinson came in to help them to realign their business development initiatives, so it is not merely M&A that they are interested in but its associations and potentially creative associations that he’s particularly skilled at. So the question is does company wants to add to the existing pipeline. M&A cannot be stated as a foregone conclusion but they will be extremely active in bringing offering in so when they have this interview in year 2018.
The right sort of contracts are ones that build on company’s current assets bracing its pipeline. Milligan termed the major elements that establish a successful merger in the frame of the Triangle Pharmaceuticals and Pharmasset contracts. Milligan added that Gilead must show a high degree of confidence in understanding of the technical part of any deal.