Gilead Sciences
Gilead (GILD, Financial) (1.9% position) is a biopharmaceutical company that develops and commercializes antiviral drugs for HIV, hepatitis B, hepatitis C, and influenza. While Gilead has a stable legacy HIV franchise, the company has struggled to build a pipeline capable of delivering the next set of products to drive its long-term growth. The HIV business will face pressure in the mid-2020s as patents expire. Since becoming Chairman and CEO in March 2019, Dan O’Day has made significant changes to the management team, and the company has invested aggressively to find products capable of generating growth outside of the legacy business. In September 2020, Gilead announced its acquisition of Immunomedics for $21 billion. Immunomedics’ most commercially promising asset is Trodelvy, a differentiated oncology drug that management hopes will become the cornerstone of Gilead’s oncology franchise. At only nine times earnings, Gilead increases the Fund’s exposure to innovation at an attractive price.
From Dodge & Cox's Stock Fund 2021 annual letter.
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