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J.P. Morgan Weighs In on Two Healthcare Giants: Gilead Sciences, Inc. (GILD), Celgene Corporation (CELG)


J.P. Morgan analyst Cory Kasimov came out with a brief commentary on the pharmaceutical giant Gilead Sciences, Inc. (NASDAQ:GILD) and biotechnology giant Celgene Corporation (NASDAQ:CELG), following recent announcements and events.

Gilead Sciences, Inc.

Shares of Gilead Sciences spiked 5.50% yesterday, after the FDA issued a warning stating that AbbVie’s HCV drug, Viekira Pak, can cause harm to the liver in patients suffering from advanced cirrhosis. The warning could reshape the growing field of high-priced drugs to treat the virus, which also includes Gilead Sciences’ blockbuster medications Sovaldi and Harvoni.

Kasimov commented: “While this is certainly a positive headline for GILD, we would note that that GILD’s market share in 2Q15 (as noted on the 2Q call) was over 90% of all HCV patients (85% for Harvoni) per Rx captured in the standard third-party tracking data. Thus, in the near term we would expect to see a relatively incremental impact from this news on GILD’s market share. That said, we do think this news changes the tone the HCV market. Based on this development, we also suspect that ESRX could potentially rethink their exclusion of GILD’s products from their formulary (though in order for GILD to maintain >90%...