Monday, June 15, 2015


GILD has not made a big acquisition lately. There are several considerations.

* Is GILD being forced to purchase a company from their investors? If so, it may be over-paid. The bio tech and drug companies have too many crazy acquisitions already. Many do not make sense.

* GILD has a lot of cash sitting around unproductively.

* GILD needs a big bang several years down the road. Its pipeline does not seem to justify the market cap. If Apple only has iWatch to show for, then Apple will be in big trouble two or three years from now.

* Contrary to another post, a new acquisition for GILD should not be based on the financial ratios, but the potential market for one or more new drug(s). The small company usually does not have marketing resources and developing further trials. It is a win win situation for both the acquirer and acquiree.

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