Biotech Values

[Rocky3]

From Wells:

**Harvoni/Sovaldi IMS data for week ending 12/19/14 became available this morning (12/26). Harvoni NRx is
down week-over-week, to 3,370 from 3,466, -2.8%.
**We assume multiple drivers in place, with potential for warehoused patients plus increased demand due to
Harvoni's better convenience offset by insurance barriers. We anticipated some further slowdown in treatment
initiations heading into the late December holiday season, as patients and clinicians elect to defer treatment to
the beginning of 2015. It is difficult to ascertain the offsetting effects of these trends, though in our view
Harvoni is still in growth phase.
**Sovaldi NRx increased to 1,005 from 942, +6.7%. Sovaldi NRx appears to be settling at a runrate of 1,000
scrips/week as the base demand from GT2/3 patients, a positive for GILD's HCV franchise.
**Total prescriptions across GILD's HCV franchise were up week-over-week, to 9,412 from 9,100, +3.4%. This
includes this week's total NRx count of 4,375, plus refills from the 3,008 Harvoni scrips first filled four weeks
ago, and the 1,253 Sovaldi scrips first filled eight weeks prior.
**BOTTOM LINE: Harvoni NRx decreased modestly this week, as expected; while room for upside to
consensus is low, GILD's total HCV franchise sales should exit the year at a favorable steady state into the
ABBV launch.