Biotech Values

[DewDiligence]

The HCV/GT1 pricing dynamics are complicated by the possibility that GILD’s regimen will have both 8-week and 12-week durations, depending on the subgroup.

Let’s assume for the sake of discussion that GILD’s pricing is linear with respect to duration. If ABBV/ENTA prices its regimen at, say, a 10% discount to GILD’s 8-week treatment, then ABBV/ENTA’s discount becomes 40% relative to GILD’s 12-week treatment.

This is why my modeling assumes that ABBV/ENTA’s aggregate discount relative to GILD is 20-30%.