Is Merck & Co. A Real Threat To Gilead Sciences & AbbVie Inc?

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MRK Stock NewsGilead Sciences, Inc. (NASDAQ: GILD) | AbbVie Inc (NYSE: ABBV)

Gilead Sciences and AbbVie Inc play a major role in the Hepatitis C Virus treatment market. The combination of Sovaldi, Harvoni (GILD) and Viekira (ABBV) is not only incredibly effective in treating the virus, the combination is the market leader around the world. Considering the facts that hepatitis C affects a mass amount of people, and that treatments are relatively pricey; the combination treatment naturally brings in mass amounts of money for both companies.

Merck & Co., Inc. (NYSE: MRK)

On the other hand, Merck & Co. is working on its own entry into the hepatitis C treatment market. As a matter of fact, tomorrow the European Association for the Study of the Liver is expected to release abstracts. Within the release, we should see Phase III data for Merck’s combination to be announced; a combination that is directly in competition with the GILD, ABBV combination treatment. This is huge news because in Phase II, MRK’s cure rates were in line with the GILD, ABBV combination.

What We’re Likely To See From GILD, ABBV, And MRK Tomorrow

  • Gilead Sciences/AbbVie Inc – I’m expecting to see both of these stocks hit a bump in the road tomorrow and take a turn to downtrends. While I don’t expect the downtrends to last, with expectations of Merck & Co.’s Phase III data to be released and be just as strong as Phase II, the market is going to react to new competition in the hepatitis C virus treatment space getting closer to launch.
  • Merck & Co. – On the other hand, I’m expecting to see great things from Merck & Co. stock tomorrow. If Phase III data is released, and it is as good as analysts are expecting it to be, we can expect to see a major rally in this one tomorrow; so, get ready for the break out.

What Do You Think?

Do you think we’ll see Phase III data from MRK? Will it cause a breakout? How do you think tomorrow’s release may affect GILD and ABBV? Let us know in the comments below!

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