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Leonard Yaffe
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I am an MD by background who runs a healthcare hedge fund. I worked as a sell-side medical analyst for 20 years, covering pharmaceuticals, medical devices, PBMs and drug distributors.
  • GILD--Stock Down On ESRX Comments 0 comments
    Dec 10, 2013 1:03 PM | about stocks: GILD, ABBV, JNJ, ESRX

    GILD's stock is down sharply on a comment by ESRX in regard to seeking lower pricing for the newer drugs to treat Hep C. I DO NOT view this as a significant threat to GILD's earnings stream. I have been assuming $60-70k per course of therapy. Pharmacoeconomic data exists that supports the cost-effectiveness of treating Hep C. Current Hep C drug therapy (less effective, more side effects) is $70k if one includes a PI. For 2014, the available drugs will include JNJ's simeprevir and GILD's sofosbuvir, and these may be recommended by the AASLD-IDSA joint panel to be used off label in Genotype 1 patients. Furthermore, the ABBV regimen discussed today, while all-oral, still includes ribavirin, which has side effects including anemia. I believe that the comments made by ESRX reflect the very large number of patients that they expect to be treated in the coming years. Len

    Disclosure: I am long GILD, JNJ, ABBV, ESRX.

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