Data Shows Gilead's HCV Franchise Is Surviving New Competition

Leerink’s Geoffrey C. Porges maintained an Outperform rating on Gilead Sciences, Inc. GILD, with a price target of $127.

Porges mentioned that “current analysis of IMS script data and review of the largest payer plan formularies reveal that Gilead’s HCV DAAs are continuing to dominate the market, with modest share gains for rivals.”

Harvoni Continues To Dominate

Seven weeks after the launch of Merck & Co., Inc.’s MRK Zepatier, Sovaldi and Harvoni were able to retain their dominant position in 65 percent of the top 20 largest commercial plans, as well as 70 percent of the top 10 largest government plans.

Dominance Likely To Continue

In addition, Harvoni is covered by 100 percent of the top 20 Medicare plans, while none cover Zepatier and 85 percent do not cover AbbVie Inc’s ABBV Viekira Pak.

Porges stated that “AbbVie’s product had only modest impact on Gilead’s overall revenue performance,” while adding, “Despite substantial price discounts by competitors, Harvoni and Sovaldi remain the most widely covered and prescribed HCV DAAs.”

The analyst also highlighted that discussions with payers suggest the “resilience” of Gilead Science’s HCV franchise, despite the pricing pressure from competitors.

According to the Leerink report, “Sovaldi and Harvoni currently have the broadest indications among all their HCV competitors.”

These are also the “only products recommended for the treatment of patients with decompensated cirrhosis.”

The products also have the cleanest safety labels, the analyst pointed out.