Gilead Sciences Jumps Higher, Again…
Shares of Gilead Sciences (NASDAQ:GILD) have been on a tear for the last year as the company has consistently delivered to an ever exuberant customer base. Gilead Sciences, one of the largest players in the biotechnology space has its hands in all aspects of the business with exposure to HIV, inflammation, and oncology to just name a few of the company’s major segments.
It feels like every other week we see positive data from the company hitting the wires and on Monday morning the street was welcomed to even more positive news. It was announced that the Food and Drug Administration approved the company’s potentially blockbuster drug Sovaldi as a combination therapy for treating patients suffering from chronic hepatitis C virus. Hepatitis C is the primary reason behind liver cancer and liver transplantation in the U.S. The approval of the all-oral HCV treatment didn’t surprise many analysts as its approval was recommended by an advisory panel of the FDA earlier in the year.
After a long investigatory phase, the drug was officially approved for all genome type and is expected to hit a large proportion of the target market over the next couple years. Moreover, Sovaldi in combination with ribavirin can also be used to treat chronic HCV patients awaiting liver transplantation to prevent the recurrence of the virus after transplant.
On Monday not just the patients were benefiting. Share of the company were higher by 1.62 percent to $75.19 per share. The street is fully expecting the drug to generate substantial revenues for the company. Gilead stated in its press release that the wholesaler acquisition cost in the U.S. of a bottle of Sovaldi containing 28 tablets is $28,000. In the coming weeks we should have a better idea of realistic multi-year sales estimates for the company.
Sorry. No data so far.