Biotech Values

[DewDiligence]

IDIX Bear Stearns webcast notes:

1. After taking into account discounts offered to managed care for Hepsera and Baraclude, the effective U.S. price of Tyzeka will be a ~15% discount to Hepsera and a ~20% discount to Baraclude (rather than the ~30% discount implied by list prices).

2. NVS/IDIX will initiate a phase-4 trial of Tyzeka+Hepsera in Lamivudine-refractory patients to seek a label expansion into second-line treatment. My take: wide off-label use of both Tyzeka and Baraclude monotherapy in Lamivudine-refractory patients will probably come even without second-line studies, but a favorable outcome in the planned study should allow Tyzeka to gain some share at the expense of Baraclude. (Note that Hepsera is a nucleotide drug while Tyzeka and Baraclude are nucleoside drugs [#msg-14548291].)

3. In addition to the advantage in convenience Tyzeka enjoys vs Baraclude from its lack of a food interaction, Tyzeka has a marketing advantage vs Baraclude in safety for pregnant patients. Tyzeka is the only approved antiviral drug for HBV that is classified as “Pregnancy Category B” (not teratogenic) in the product label (#msg-14322606).