Morgan Stanley Reiterates Overweight Rating on Gilead Sciences on Phase III Data

In a report published Monday, Morgan Stanley reiterated its Overweight rating on Gilead Sciences (NASDAQ: GILD).

Morgan Stanley noted, “Additional Phase III data for 7977/sofosbuvir are as expected and continue to support a best in class profile and a multi-billion dollar opportunity for Gilead with a likely launch in 1H14. Despite investor concern around FISSION, a similar 67% SVR rate to PEG-riba for an all-oral 12-week regimen looks solid, but GT2/3 remains a more minor part of the long term opportunity (~30% of US patients). For NEUTRINO in GT1 with PEG-riba, an 89% SVR rate in GT1 looks good and use in this setting could be an early source of launch upside ahead of the all-oral GT1 approval in 2015. Discontinuation rates of 1% in FISSION and 2% in NEUTRINO continue to support 7977's strong safety profile. The program is on track for a mid-2013 filing with full Phase III data for both likely at EASL in April.”

Gilead Sciences closed on Friday at $40.56.

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