Biotech Values

[Rocky3]

Quote:
GILD/ABBV/ENTA—In year one, I think that 10% of GILD [Harvoni] scripts will be for 8 week. So blended cost will be over $90K for GILD.
If this turns out to be true, it’s strongly bullish for ABBV/ENTA.

I'm not at all sure of that. It really depends on how ABBV prices. I would agree if ABBV prices 40% under the GILD 12 week price (in the $55-60K range). But if ABBV prices in the 15-20% discount range, the total revenue might be similar, but the percentage of market will be much lower than your estimates. Net, net I still think $3B is a high/reasonable estimate (though much higher than most estimates from the Street).