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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.
  • Hepatitis C Drug Therapy: AbbVie Suggests Price Competition Not To Be A Sales Driver 0 comments
    Jan 16, 2014 9:21 AM | about stocks: ABBV, GILD

    ABBV management stated yesterday that it does not intend to price its Hepatitis C drug regimen at a discount. Additionally, they believe that peak US annual Hepatitis C drug sales could approach $28 billion.

    ABBV pricing had become an issue for investors, especially as it relates to GILD. Price competition is uncommon in the drug industry amongst branded products, so this statement is consistent with my thinking. Furthermore, with the introduction of its FDC regimen later this year, GILD will have a potentially significant pricing advantage over combination therapies using drugs from two companies, and this fact should not be overlooked. Also, the size of the US opportunity appears much greater than current Wall Street expectation. I continue to expect sales of all-oral Hepatitis C medications to exceed $8 billion this year, and that GILD will achieve EPS of $7 per share in 2015. Len

    Disclosure: I am long GILD, ABBV, JNJ.

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