Hepatitis C is an infectious disease caused by the hepatitis C virus (HCV) that primarily affects the liver. Gilead Sciences Inc. (GILD – Free Report) markets blockbuster HCV drugs, Sovaldi and Harvoni, while other well-known names in this market are AbbVie Inc.’s (ABBV – Free Report) Viekira Pak, Bristol-Myers’ (BMY – Free Report) Daklinza and Johnson & Johnson’s (JNJ – Free Report) Olysio.
According to the Centers for Disease Control and Prevention (CDC), about 3.2 million people in the United States are living with chronic hepatitis C infection while many remain unaware of being infected. There are about 17,000 new hepatitis C cases each year in the United States, many of which go unreported.
Considering these numbers, it is not a surprise that quite a few pharma and biotech companies are working on bringing new, improved, shorter-duration HCV treatments to the market. The market is thus getting crowded and seeing increased pricing pressure.
A lot has happened in the HCV space of late.
Meanwhile, Gilead’s single-tablet regimen (STR) of Sovaldi, velpatasvir and voxilaprevir, Vosevi received approval in the United States, EU and Canada in July/August. Vosevi became the first once-daily STR available as a salvage therapy for patients infected with HCV genotype 1–6 who have failed prior treatment with DAA regimens including NS5A inhibitors.
Gilead’s shares have outperformed the industry year to date. The stock has rallied 16.6% compared with the industry’s gain of 14.5% in the same time frame. The stock carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Meanwhile, AbbVie’s 8-week, pan-genotypic, ribavirin-free, once-daily HCV treatment, Mavyret/Maviret, gained approval in the United States, EU and Canada in the past couple of months. Mavyret, AbbVie’s next-generation HCV program, is a combination of glecaprevir, a potent protease inhibitor and pibrentasvir, a NS5A inhibitor. Maviret has the potential to rejuvenate growth in the HCV franchise. According to AbbVie, Mavyret may be used in up to 95% of HCV patients, depending on the stage of liver disease and prior treatment history.
