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Gilead Sciences, Inc. (NASDAQ:GILD) is a research-based biopharmaceutical company. It has several blockbuster drugs within its two largest product lines that treat hepatitis (Harvoni and Sovaldi) and HIV/AIDS (Truvada and Altripa). Impressively, the company has a large profit margin (close to 50%), it offers an attractive 2.6% dividend yield, and its dividend payout ratio is amazingly low at only 16.4%. However, growth is slowing and competition is beginning to creep in. Specifically, Gilead will experience a couple big patent expirations in 2018 and 2021, generic competition is on its way, and revenues are already declining as shown in the following chart.
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