Gilead at Piper Jaffray Conference Notes

posted in: Notes | 0

Gilead Sciences’ (GILD) CEO John Milligan Presents at Piper Jaffray

Healthcare is likely to remain stable in 2017

” I think we will make the assumption that 2017 with regard to patients and how they achieve their healthcare is probably stable. I don’t think you could disrupt it from where it is now without massively, without causing a massive amount of unhappiness across the US population. Everybody signed up were now ready to get into the new plans if there any for next year. And so I think, if you are going to unwind healthcare, it has to be a couple of year process of getting things ready to transition people to something new and I just don’t see how it’s could happen in 2017.”

Some thoughts around M&A

“And so, a lot of folks have suggested that we go out and prices be down, we’ll just go out and buy whatever we want to buy. I, having lived through years have got getting beat up for mergers where people were questioning what our IRR could possibly be, in fact, they’ve all turned out very, very well. It is a different world than I am used to in that respect.

I think we are going to be disciplined and thoughtful and where we are going to stick with our plan rather than jump around of going after very specific areas where we can provide the data, the scientists and the selling power to make things happen rather than jump into category-after-category which often look good on spreadsheets, but are in fact quite difficult to manage.”…

“Could you ever get your money back? Some of these deals that I’ve seen I don’t think that would be true. So you have to believe that there is something else that you can do with that they are some other catalysts that you can have. And so, we’ve looked at a lot of things and chose them not to participate or we are not the winner at the end of the day. Those things happen in this field especially in competitive areas that we are in.”