The Zacks Analyst Blog Highlights: Gilead Sciences, AbbVie, Merck, Achillion Pharmaceuticals and Express Scripts - Press Releases
For Immediate Release
Chicago, IL – July 28, 2015 – Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Gilead Sciences Inc. (GILD), AbbVie Inc. (ABBV), Merck & Co., Inc. (MRK), Achillion Pharmaceuticals, Inc. (ACHN) and Express Scripts ( ESRX).
Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.
Here are highlights from Monday’s Analyst Blog:
4 Stocks to Fight the Virus on World Hepatitis Day
World Hepatitis Day, observed on Jul 28, aims to raise awareness about hepatitis. This Hepatitis Day, the World Health Organization (WHO) will urge policy-makers, health workers and the public to act now to prevent infection and death from hepatitis. Each year the focus is on a specific theme – the theme for 2015 is the “prevention of viral hepatitis.”
History of World Hepatitis Day
According to data provided by WHO, 400 million people across the world live with hepatitis B and C. With the virus claiming approximately 1.4 million lives each year, hepatitis has become an epidemic silently spreading and infecting healthy people having no clue that they are being attacked by something they cannot even detect. The reality is that this virus claims more lives than other deadly infectious diseases like HIV/AIDS, tuberculosis and malaria – primarily because more resources and attention are directed toward these diseases.
Finally, in 2010, after long being neglected by physicians, public-health officials and politicians, the WHO marked World Hepatitis Day as one of the only four official disease-specific world health days (HIV/AIDS, tuberculosis and malaria), to be celebrated each year. Setting aside a day for the disease would make the common people across the world more aware about hepatitis and the steps needed to prevent new infections and improve health outcomes for those already infected. Jul 28 was chosen for this purpose as it is Nobel Laureate Professor Baruch Samuel Blumberg’s birthday. Professor Blumberg discovered the hepatitis B virus (HBV) and developed the first hepatitis B vaccine.
WHO, in joint partnership with the Scottish government and the World Hepatitis Alliance, is co-organizing the first World Hepatitis Summit to be held in Sep 2015.
What Is Hepatitis?
Hepatitis is an “inflammation of the liver” most commonly caused by one of the five main hepatitis viruses, referred to as types A, B, C, D and E. An estimated half a billion people are chronically infected with hepatitis B or C virus, which together are the most common cause of liver cirrhosis and cancer.
Hepatitis C virus (HCV) is complex and treatments differ depending on its subtypes.
HCV – Medical Miracle Leading to Captivating Market
For a long period of time, the standard-of-care treatment for HCV included peg-interferon (peg-INF - weekly injections) or ribavirin (RBV - oral drug) or pegylated forms of interferon plus RBV for treating genotype 1 HCV infection (most common in the U.S.). However, this treatment regimen was associated with significant side effects like fatigue, flu-like symptoms, rash, depression and anemia.
The treatment paradigm changed in 2011 with the introduction of a couple of directly acting anti-virals – HCV protease inhibitors Victrelis and Incivek – looked to reduce the treatment period. However, both required administration with peg-IFN and RBV leaving the door open for treatments with fewer side effects.
Late 2013 brought to market two cocktail treatments, Gilead Sciences Inc.’s ( GILD) Sovaldi – a polymerase inhibitor and Johnson and Johnson’s Olysio – an NS3/4A inhibitor, both aimed at changing the treatment paradigm for HCV patients yet again by providing them with all-oral treatment regimens without the administration of interferon, thereby doing away with a whole range of side effects and sustained viral responses (SVR) as high as 90%.
Presently, there is immense interest as well as commercial potential in HCV treatments given the size of the market. As per data provided by WHO, 130–150 million people suffer from chronic HCV across the world and about 500,000 people succumb to HCV-related liver diseases each year. Moreover, an estimated 2.7 million people in the U.S. suffer from chronic HCV, 70% of which are caused by genotype 1.
For so many years, HCV patients had to endure severe side effects with no assurance of getting cured. Patients now are postponing their treatment as they await better and safer treatment options.
4 Picks for the HCV Market
Although picking the correct stocks from so many options could be a daunting task, our proprietary methodology makes it fairly simple. One way to narrow down the list of choices is by looking at stocks that carry a favorable Zacks Rank – Zacks Rank #1 (Strong Buy), #2 (Buy) or #3 (Hold). Below, we will help you identify three players in the HCV market which are poised for growth.
Foster City, CA-based Gilead Sciences Inc. known for its revolutionary blockbuster HCV drug, Sovaldi, boasting a cure rate of 90%, raked in $10.3 billion in 2014, which helped the company boost its EPS by as much as four times to $7.91 from $1.93 in 2013. Meanwhile, its new HCV drug, Harvoni, which completely did away with interferon, has already registered sales of $5.7 billion since its launch in late 2014.
There is no holding back this Zacks Rank #3 (Hold) stock when it comes to its HCV franchise. Gilead is looking to develop a pan-genotypic, single tablet regimen having the potential to effectively treat chronic HCV patients, regardless of HCV genotype.
North Chicago, IL-based AbbVie Inc. (ABBV), a Zacks Rank #3 stock, began to be viewed as a top competitor in the HCV race when its all-oral, interferon-free therapy with/without RBV Viekira gained approval last December in the U.S. Approval was highly expected given the treatment’s high rates of response and tolerability along with low discontinuation rates. While Viekira has recorded sales of $279 million since the time it’s on the market, AbbVie estimates the drug to achieve global annualized sales of more than $3 billion by the end of 2015.
Currently, AbbVie is working on the development of interferon-free treatments for HCV. It is progressing with the development of its next-generation HCV program which includes ABT-493, a potent protease inhibitor, and ABT-530, a new NS5A inhibitor. The company is aiming to bring a ribavirin-free once-daily pan-genotypic combination to the market.
Our third pick is Whitehouse Station, NJ-based Merck & Co., Inc. ( MRK) which previously had a presence in the HCV market in the form of Victrelis and is now poised to come back potentially next year with its combination regimen – grazoprevir (NS3/4A protease inhibitor)/elbasvir (NS5A replication complex inhibitor) – for the treatment of adults suffering from chronic HCV genotypes 1, 4 or 6 infections. Merck also intends to seek approval for the combination in other markets by 2015 end. The combination has been granted Breakthrough Therapy designation in the U.S.
This Zacks Rank #3 stock is additionally studying the combination in multiple HCV genotypes and in patients with difficult-to-treat conditions such as HIV/HCV co-infection, advanced chronic kidney disease, inherited blood disorders, cirrhosis and those on opiate substitution therapy. The company had even acquired HCV-focused biotech company, Idenix Pharmaceuticals in 2014 with the intention of boosting its HCV portfolio.
And things look even better with our final pick – Achillion Pharmaceuticals, Inc. ( ACHN). This New Haven, CT-based company is crafting a short-duration, highly effective, pan-genotypic, oral regimen for the treatment of HCV following a licensing deal worth $1.1 billion struck with Johnson & Johnson this May.
The company has been in the news ever since it reported encouraging interim data from a mid-stage study on ACH-3102 in combination with Sovaldi. Results showed that all patients including those with a high baseline viral load in the six-week treatment duration arm achieved 100% SVR at 12 weeks.
Keep your eyes on this Zacks Rank #3 stock which is looking to cut short the treatment duration further.
Need of the Hour
Though HCV treatments are now available and within the reach of many patients, the real cause of concern is the cost and access to care. As per data provided by pharmacy benefit manager Express Scripts (ESRX), patients in the U.S. spent 743% more on HCV treatments in 2014 compared with 2013. Sovaldi, Harvoni and Viekira all come with premium price tags.
However, the companies are working on providing patients access to treatments without barriers. Late last year, AbbVie struck a deal with Express Scripts, to provide Viekira to Express Scripts members (which cover about 25 million Americans) at a reportedly steep discount starting Jan 1, 2015. Consequently, Gilead too announced rebates and discounts and the company is working with public programs and private insurers to broaden the access.
Without a doubt, the entire world needs to come together to put an end to this deadly virus. Invention they say is the mother of necessity and the drugs on the market and in the pipeline are addressing the threat posed by hepatitis.
With regards to investment opportunities, these stocks provide immense upside potential as all are racing to develop better, safer, shorter duration HCV treatment options, irrespective of genotype.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today. Find out What is happening in the stock market today on zacks.com.
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
GILEAD SCIENCES (GILD): Free Stock Analysis Report
ABBVIE INC (ABBV): Free Stock Analysis Report
MERCK & CO INC (MRK): Free Stock Analysis Report
ACHILLION PHARM (ACHN): Free Stock Analysis Report
EXPRESS SCRIPTS (ESRX): Free Stock Analysis Report
To read this article on Zacks.com click here.
