We just published a new IOI Tear Sheet to our Members and will very shortly be publishing a more detailed IOI ChartBook as well. Here is a sample.

Gilead Sciences (GILD) is a spectacular biotechnology investor.

Its 2011 purchase of Pharmasset for $11 billion yielded a revolutionary treatment for Hepatitis C Virus (HCV) that has generated $40 billion in revenues and roughly $21 billion in Owners’ Cash Profits (OCP) to date. Competition in HCV is heating up, but its drugs likely can generate many tens of billions more in revenues over the next decade.

Its HIV franchise is also very strong and durable, with the recent introduction of better, safer treatments and the use of its older drugs to prevent HIV infection.

The next possible pipeline star is a treatment for NASH, a kidney disease. Another could-be hit is a Hepatitis B treatment, which builds on its understanding of HIV. The issue is that developing drugs – which essentially means investing in biotech start-ups – is risky business and there is no guarantee of success.

Gilead’s PE Ratio is very low, but if its pipeline fizzles and sees more competition in the HCV field, the low PE Ratio will be appropriate.

Take a Trial Membership to download the full IOI Tear Sheet on Gilead.