Biotech Values

[DewDiligence]

GILD—[from Morgan Stanley]: …the fear is that the 46% gross-to-net just represents a starting point of additional downside instead of the end of the road for downside. We believe it actually represents a reasonable base where further decline may be limited.

However, the 46% figure is a blended average of GILD’s 2015 US HCV sales of Harvoni and Sovaldi. The average discount is almost certainly larger on Harvoni than it is on Sovaldi.