Biotech Values

[jq1234]

ABBV/ENTA Viekira Pak vs GILD Harvoni

Guaranteed Market

In exchange for its discount, AbbVie gets a guaranteed market for its drug without limitations on the extent of liver damage patients must have before Express Scripts will approve coverage. In addition to specialists, primary-care doctors will be able to prescribe Viekira Pak under the agreement, broadening the market for AbbVie. The deal lets everyone with hepatitis C be treated, Miller said.

The pact was the first time a specialty drugmaker agreed to a major discount off of its published price in exchange for fewer restrictions on access to the medication, he said. Gilead had been privately offering a discount of about 8 percent for its drugs to prescription benefit managers, Miller said.

http://www.bloomberg.com/news/2014-12-22/express-scripts-shuns-gilead-in-hepatitis-c-deal-with-abbvie.html