Monday, December 22, 2014
GILD cratered after news today. From Bloomberg:
Gilead Sciences Inc. (GILD) shares sank after the biggest drug-benefit manager in the U.S. chose a pill from AbbVie Inc. (ABBV) to be the sole hepatitis C treatment approved for many patients, as insurers seek to rein in the rising cost of medicine.
Express Scripts Holding Co. (ESRX), which helps insurers and large employers provide drug coverage, opted to narrow doctors’ treatment options in exchange for lower prices. On its most widely used list of approved drugs, Express Scripts will include AbbVie’s Viekira Pak for patients with genotype 1, the nation’s most common form of hepatitis C.
Express Scripts has waged a campaign all year against Gilead’s hepatitis C drugs, calling their cost of more than $1,000 a pill part of an unsustainable trend of surging prices for medicine designed to treat complex health conditions. Gilead’s Sovaldi and Harvoni will be left off Express Scripts’ list, which covers about 25 million people, starting Jan. 1 for most patients.
“We have asked pharma companies to work with us closer and demonstrate good judgment,” Express Scripts Chief Medical Officer Steve Miller said. “AbbVie heard our concerns and they came to the table in a very creative way.”
Gilead’s Sovaldi costs $84,000 for a 12-week course of treatment, and the company’s Harvoni, which combined Sovaldi with another medication in a single pill, costs $94,500. Viekira Pak, approved last week by the Food and Drug Administration, sells for $83,319 before any negotiated discount. AbbVie offered a “significant discount” in exchange for exclusivity, Miller said.
The FDA’s press release on approving Viekira Pak seems to indicate the the ABBV’s drug is as effective as Gilead’s miracle hepatitis C drugs and hence ESRX and its doctors are simply opting for a cheaper price. If they’re wrong, they’ll be sued up the whazoo. They must be pretty confident. I’m not optimistic for GILD. Read the FDA’s release here.
Gilead today and yesterday:
I’m officially on “vacation with the kids and grandkids. But I did want to update you on the Gilead news.
If you haven’t seen my Lessons for Investors from 2014 in Friday’s column, please go here.
Holiday “thoughts”
A couple were Christmas shopping.
The shopping center was packed , and as the wife walked through one of the malls she was surprised when she looked around to find that her husband was nowhere to be seen.
She was quite upset because they had a lot to do and hence, she became so worried that she called him on her mobile phone to ask him where he was.
In a quiet voice he said, “Do you remember the jewellers we went into about five years ago where you fell in love with that diamond necklace that we couldn’t afford, and I told you that I would get it for you one day?”
The wife choked up and started to cry and said, “Yes, I do remember that shop.”
He replied, “Well, I’m in the pub next door.”
Harry Newton who has one grandkid visiting — Eleanor, aged 13 months. Taken this morning with my trusty Canon G16. Healthy-looking kid?
Sophie is coming tomorrow.
Harry,
A very Merry Christmas and Happy New Year to you and all of your readers. I’m thankful for the time you take to write ISOTPI each day.
Cheers,
Rhett
I won’t pretend to know where GILD stock is heading but I do know that Harvoni is the best drug for Hep C patients with superior results and NO side effects. Which means any patient experiencing side effects from the ABBV drugs (well documented) will be right where they started…on Harvoni.
If we have learned anything from HIV drugs and compliance it is that simple is better. Harvoni is one pill per day vs ABBV multiple drugs twice per day.
Good luck.
Harry, I thought you might have mentioned how wonderful the NYPD is today. Yesterday at MSG just prior to the beginning of the Rangers game uniformed members of the NYPD stepped onto the ice to a thunderous 5 minute standing ovation. While watching this I wondered what the ovation would have been if it were a Knick game?
“Don’t shoot my hands are up”
“I can’t breathe”
………….what bullshit
Ronny is at it again……trollolololol…..good tidings to you, Ronny.