AbbVie (ABBV) Sends A Troubling Message To Gilead Sciences (GILD)

AbbVie ABBV stock newsGilead Sciences, Inc. (NASDAQ: GILD)

If you follow biotech stocks, you know the name Gilead Sciences. The bottom line is that this is a massive company that controls both the hepatitis C and HIV treatment spaces. However, they’ve received a troubling message relatively recently…

AbbVie Inc (NYSE: ABBV)

AbbVie is another pharmaceutical giant. While they’re not currently taking a sizable piece of the pie in hepatitis C or HIV, they have sent GILD a message. So, what’s the message?

In early studies, our hepatitis C treatment has proven to be better than yours!

OK, so they didn’t get blatantly aggressive with GILD, but ABBV did release data recently at the International Liver Congress, and it was incredibly positive! As a matter of fact, the data released showed 100% survival rates! Here’s what Scott Brun, AbbVie vice president of pharmaceutical development had to say…

RUBY-I is part of AbbVie’s broader phase 3b program and demonstrates our continued focus on people living with hepatitis C that have specific needs…Studies in our Phase 3b program will help further expand our knowledge of the utility of VIEKIRAX + EXVIERA in special populations encountered in clinical practice…”

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Why This Is A Big Message For Gilead Sciences

When it comes to Gilead Sciences, they must be starting to realize that a new player is about to enter the field; and it’s got to be a bit concerning. In all reality, hepatitis C treatments account for a massive percentage of GILD’s revenue. Considering that they currently control the market, it makes sense. However, Gilead’s treatment “Harvoni” only has a 90% survival rate. Now, let’s not discount the fact that Harvoni is an amazing treatment; but if a patient were to hear 90% or 100%, I’d be willing to bet that they take the treatment with a 100% success rate!

In the past, I’ve written about why I didn’t believe that AbbVie had a chance to take a large enough portion of the hepatitis C market to concern Gilead Sciences. Unfortunately for GILD, I had to rethink my position following the data. I understand that Harvoni has brand awareness, it’s got its in with the physicians, and it’s the current leader. However, AbbVie’s new treatment looks like it may just give Harvoni a run for its money!

What Do You Think?

Do you think ABBV is a threat to GILD? Why or why not? Let us know in the comments below!

2 Comments

  1. william tubbs Jul 15, 2015
    • Joshua Rodriguez Jul 15, 2015

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