(Reuters) - J.P. Morgan Securities raised its price target on Gilead Sciences Inc to $75 from $70, saying the company’s HIV pill could emerge as a “market leader” in three to five years, sending the drugmaker’s shares to a life-high.
U.S. health regulators approved the four-drug combination pill, Stribild, on August 27.
Physicians said there were no major concerns with Stribild or with its cost, the brokerage said after a survey of 52 HIV specialists.
Analyst Geoff Meacham, who reiterated his “overweight” rating on the stock, expects Stribild sales of about $2.9 billion in 2015, ahead of Wall Street consensus of $1.5 billion.
Gilead shares, which have risen 8 percent since the approval of the HIV pill, were up 6 percent at $65.68 on the Nasdaq on Monday. More than 16 million shares changed hands by 1454 ET, about 2.5 times their 10-day moving average volume.
Reporting by Adithya Venkatesan in Bangalore; Editing by Don Sebastian