Biotech Values

[Rocky3]

From Wells:

**IMS data for Harvoni and Sovaldi were released for week ended 10/17/2014.
**The week's total Harvoni prescriptions, covering the initial week's prescriptions since launch, were 445, and the week's
new Harvoni prescriptions were 444. This is approximately three times the scrips volume reported in the first week after
Sovaldi launched (both drugs were approved on a Friday and became available the following Monday, enabling some
comparisons) which for the week ending 12/13/13 included total Sovaldi prescriptions of 151 and new Sovaldi
prescriptions of 151. Warehousing dynamics likely differ between then and now, but we believe this is a good sign for
Harvoni's future uptake.
**The week's total Sovaldi prescriptions were 4,708, a change of -8.37% vs. last week's 5,319, and the week's new
Sovaldi prescriptions were 1,683, a change of -8.43% vs. last week's 1,838, showing some stability.
**Summing up Harvoni and Sovaldi, new prescriptions for GILD's HCV franchise were 2,127, up 16% week over week.
We believe this confirms the potential for Harvoni to re-accelerate prescription growth and draw increasing numbers of
patients onto therapy. However, it remains too early to know based on prescription numbers whether new patient starts
will return to peak levels (3,500-4,000/week) earlier this year, though we believe over time Harvoni's convenience and
more proactive advertising for all-orals should enable substantial market expansion.
**BOTTOM LINE: Hard to read too much into one week of prescription data, but initial numbers relative to Sovaldi's first
week, as well as overall growth in new HCV franchise starts after weeks of declines, are both good signs that should
bode well for the near- and long-term revenue potential of Harvoni.