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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.
  • Gilead---The Story Has Never Been Better 0 comments
    May 14, 2014 1:29 PM | about stocks: GILD

    I am listening to the Gilead presentation at the BofA Healthcare conference currently ongoing. Regarding Hepatitis C, management noted that in 2013, only about 40,000 patients in the US were treated for Hepatitis C. As I have stated before, typically 100,000 patients are treated annually in the US, but warehousing occurred in 2013 (just as it did prior to the introduction of PEG Interferon), as newer therapies were awaited. I expect over 100,000 patients to be treated in 2014, and about 175,000-225,000 patients to be treated in 2015, as Gilead's FDC tablet becomes available. Importantly, I believe that the FDC will be priced at a lower per course of treatment than current Sovaldi regimens.

    Regarding oncology, Gilead has several drug candidates in intracellular signaling, including Idelalisib, as well as drugs that target the extracellular matrix. In hepatology, drug development efforts include liver fibrosis. As for HIV, Gilead is developing an improved single tablet regimen with tenofavir alafenamide, which will result in less exposure of tenofavir to the bloodstream.

    I maintain my price target of $140.

    Len

    Disclosure: I am long GILD.

    Stocks: GILD
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