Endless schreef op 24 oktober 2020 04:33:
email.seekingalpha.com/article/438112...Galapagos Is A Buy Despite Setback In The Conclusion
Given how closely the two companies are tied together, one way to invest in Galapagos is to hold Gilead Science stock [which I do]. Gilead pays a dividend and has a large array of commercial therapies as well as an extensive pipeline. On the other hand, Gilead's stock price has been going mostly down for years. Since Galapagos will just begin to see commercial revenue this quarter, it is difficult to predict how filgotinib will fare in the competitive RA market. At the stock price of $123.68, Galapagos had a market capitalization of about $8.1 billion. Some revenue growth going forward is assumed in that market cap. I believe that would be justified if filgotinib eventually captures even 5% of the global RA market, which was near $58 billion in 2019, keeping in mind that Galapagos gets either royalties or a profit split.
The key for long-term investors is that filgotinib is just the start. In addition to the other potential drugs described in this article, Galapagos claims to be able to generate many more from its platform, and I find the claim credible. As always when enough clinical trials are involved, there will be some successes and failures, causing the stock price to dive or rise quickly at times. I have added Galapagos to the list of pharmaceutical companies I am considering buying, but it also has to compete with companies that are already in my portfolio that I think are undervalued and would like to own more of. Whether it is right for other investors depends on their individual investment strategies and assessments of the value of the pipeline.de