Biotech Values

[DewDiligence]

GILD/VRUS/IDIX/INHX/JNJ/BMY/Roche/etc—Ah ok, I think I follow you. In effect, JNJ/Medivir doesn't necessarily need a formal partnership deal for PSI-7977 or any other nuke. Provided TMC435 and 7977 make it to market, even in the absence of the FDA formally approving the combo, it's likely doctors will prescribe the drugs in combo anyways.

Right. The notion that other HCV companies must compete directly with GILD by developing an in-house all-oral regimen is based on a false premise, IMO.

If PSI-7977 is the best nuke (as it currently appears to be), why should JNJ and BMY try to force the pairing of a good PI or NS5A inhibitor with a second-rate nuke? It may make more sense for these companies to bring their PI and NS5A drugs to market on their own and let them gain commercial traction from combination with PSI-7977. In the HIV arena, this is how such drugs as Reyataz and Sustiva (prior to inclusion in Atripla) became big sellers.

When viewed in the above light, it’s easier to understand the colossal price GILD is paying to acquire VRUS.