Gilead (NASDAQ:GILD) Altripla Recall a Non-Issue According to Deutsche Bank

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Deutsche Bank said Gilead(NASDAQ:GILD)’s Atripla recall is not an issue. The firm said Gilead proactively issued the recall following a typical quality check that found small particles and notes the company has multiple manufacturers for Atripla. Management said it was a minor issue and that Atripla supply is more than enough. Shares are Buy rated with a $132 price target.

In a note issued by DB, Management offered some color on the voluntary recall.  A summary of the discussions are below:

On a typical quality check Gilead found small particles and proactively issued a voluntary recall of 39K bottles ONLY.

Gilead (NASDAQ:GILD) took it upon themselves to contact the agency and issue the voluntary recall of these lots.

This is from their 3rd party manufacturer in China that only makes Atripla. Gilead has multiple manufacturers for Atripla.

Management reiterates that this is a very minor issue The company has more than enough Atripla supply.

Gilead (NASDAQ:GILD) was trading down 3.50% at 80.02 nearing the close on Thursday.  DB is recommending to buy on today’s weakness.

 

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