Biotech Values

[oc631]

Pricing issue for Sovaldi itself will be moot point for GILD. No one except other companies who use Sofosbuvir as part of combo would care.

I believe you are suggesting that the Sovaldi/GS-5816 combo will prove superior to Sovaldi/Ledipasvir in GT1 and payers would be willing to pay a premium for it across genotypes (which is a tall order). Sovaldi/GS-5816 may eventually be labeled for all HCV patients but I expect the combo to see little use outside of GT3. Perhaps minimal use as an out-of-pocket, premium choice for patients of other genotypes. The idea of raising the price of Sovaldi/GS-5816 FDC, to defend against "me-too" Sovaldi-based competitors, would be a self-defeating strategy for GILD and play into ABBV's hand within the oversized GT1 U.S. market. Additionally, payers will require the use of Sovaldi/Riba in GT2 (due to cost containment).