Part 3/5:
Despite the stock repurchases, Gilead is indeed exploring external opportunities. However, as Campbell explained, the oncology division is currently facing difficulties. Recent setbacks, such as the halting of trials for the cancer drug Zydelig due to safety concerns, have added pressure on the oncology team, which recently lost its head. This has led to a phase of introspection regarding the company’s future direction in oncology.
The question remains: if the cost for potential acquisition targets is too high, why not continue investing in the Gilead itself? This strategy not only bolsters shareholder confidence through dividends and stock buybacks but positions the company well to develop new pharmaceuticals.