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IIRC, about 2-weeks ago our Gilead at about $70 had a P/E of ~44 and Amgen at about $65 a P/E of ~26. Currently Gilead's P/E shows a 0 or N/A.

Can someone expland this?


I'll take a shot. GILD posted a loss of $3.62 per share in 4Q 2006, bringing the yearly total to minus $2.59 per share. Rather than show a negative P/E ratio, I think that it is just calculated as either zero or N/A.

And I take it that the loss is due to the purchase of Myogen. S&P analysts predict that this acquisition will dilute earnings through 2008, be neutral in 2009, and accretive in 2010.

I think I posted something recently on the positive effect that Myogen should have on Gilead's future, in that the company will now be less dependent on profits from a relatively narrow focus, i.e. on HIV and influenza.

Jack
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