Biotech Values

[ciotera]

hypothetical discussion

Agree in principle, but the "warehouse" is composed of different types of patients with different needs - for example, there are GT1a null responders there and naive patients contraindicated to Riba.. those are unlikely to get treated with GS-7977/Riba but will wait for later more potent or tolerable combos.. I tend to agree that removing IFN probably unlocks the biggest barrier but that may not be enough.. and keep in mind, even if there were extremely large numbers of IFN-averse patients warehoused specifically for GS-7977/Riba, they cannot all be treated overnight - there are only so many specialists out there. And competition is literally breathing down GILD's neck. So I think depletion of the warehouse is going to be somewhat gradual and the warehouse will likely be shared among several companies. The investment question is will it be enough to justify the valuations we've seen?