By Ben Levisohn

Yesterday, Gilead Sciences (GILD) reported earnings and issued guidance, and if investors were hoping for some reassurance about the future, they were severely disappointed. Now, attention is turning to what Gilead can do to reverse its fortunes, including the possibility of a large acquisition. How large? Gabelli’s Jing He, for one, posits the possible combination of Gilead and Bristol-Myers Squibb (BMY), which has been dealing with disappointments of its own. She explains:

Plans to Get out of Value Trap. Gilead repurchased $1bn of shares in 4Q’16, sticking to its plan of pausing on buyback to prepare for acquisitions. The company restated its willingness to acquire assets with pipeline value. We believe Incyte (INCY) is a good fit due to Gilead’s interest in growth oncology asset, as well as BioMarin (BMRN) (Buy) which has the size Gilead favors and also provides growth. However, we would not rule out large transaction like Bristol-Myers Squibb (BMY, $87bn) due to its recent setback in lung cancer.

Shares of Gilead Sciences have dropped 9.2% to $66.41 at 10:09 a.m. today, while Bristol-Myers Squibb has risen 0.5% to $51.94, Inycte has gained 0.7% to $119.06, and BioMarin advanced 0.5% to $89.32.