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Hepatitis C: Objections To Significant Market Opportunity Are Falling By The Wayside

|Includes:GILD, OraSure Technologies, Inc. (OSUR)

I have been very focused on the opportunity for investment in Hepatitis C, with OSUR my recommendation in diagnostics and GILD, in pharmacotherapy. The latter has met with some skepticism, as investors have questioned the initial size of the market (that debate is over), the possibility of a price war in 2015 (that debate is subsiding, and I mention AbbVie management's comment today that the certainty of a cure can justify a HIGHER price), the concern that payers would resist (initial signs are that prescriptions are largely being approved, even by Medicaid) and the "tail" (AbbVie management stated today that there are currently capacity constraints and the market is sustainable for 5-7 years). As these objections subside, and investors focus on the earnings power that GILD has from Sovaldi AND (of lesser importance until 2017) its promising pipeline, I am suggesting that the stock should soon trade at a new high.

Len

Disclosure: I am long OSUR, GILD.

Stocks: OSUR, GILD