Gilead's Stock Falls After HCV Drug Safety Warning, But Analyst Sees Buying Opportunity

Gilead Sciences Inc.'s stock slumped 2.7% in premarket trade, after the biopharmaceutical company issued a warning letter to doctors regarding its hepatitis C treatments Harvoni and Sovaldi. Meanwhile, Wells Fargo analyst Brian Abrahams believes any real risks to patients are low, and said any weakness in the stock as a result of the warning should be considered a "buying opportunity." Gilead wrote a letter to healthcare providers Friday, saying there were life-threatening cases and one fatal cardiac arrest when Harvoni or Sovaldi were administered with the antiarrhythmic medication amiodarone. Abrahams said his research indicates the side effect is likely limited to concurrent use of amiodarone, and that use of amiodarone in HCV patients is relatively low. "As such we would not expect this to have any material impact on uptake of [Gilead's] HCV drugs or on the company's future revenue stream," Abrahams wrote in a note to clients. The stock has rallied 8.5% year to date, while the S&P 500 has gained 2.4%.