Biotech Values

[DewDiligence]

Additional color on 1Q14 Sovaldi sales from GILD’s 1Q14 CC:

• Of the $2.27B total Sovaldi sales, $2.098B came from the US and $164M came from the EU. (Some EU countries have not yet negotiated reimbursement rates and hence have not seen any commercial sales.)

• The sales number attributable to inventory stocking was not disclosed.

• In the US, 70% of patients had GT1 and 7% had GT3*; among the GT1 patients, about 2/3 used Sovaldi with PegIFN + ribavirin (i.e. according to the FDA label).

• The breakdown of US patients by payer type was as follows: Private insurance 45%; Medicare 45%; Medicaid 7%; Other 3%.

• Patient warehousing (i.e. deferring treatment to await the launch of all-oral GT1 regimens): GILD’s COO, John Milligan thinks KOLs and other major prescribers are warehousing some patients, but “community practice” physicians are generally treating their patients as rapidly as possible.

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*GT3 is important to single out because the labeled treatment duration is 24 weeks rather than 12 weeks; i.e., from a revenue standpoint, each GT3 patient is equivalent to almost two patients of another genotype.

GILD’s 1Q14 PR: http://finance.yahoo.com/news/gilead-sciences-announces-first-quarter-200200834.html