Biotech Values

[mcbio]

GILD

There may be rational explanations for this beyond inferring that something is wrong with Ledispavir.

I don't think we're inferring something is wrong; rather, we are seeking answers. At a minimum, this new trial raises some questions.

For instance, GILD may want to position SOF+RBV as a pan-genotypic "good-enough" regimen - why bother with tailored therapy if you can just prescribe SOF+RBV to anyone without even bothering with genotype testing?

Is it worth it to undergo at least 4 additional weeks of treatment, if not 12, simply to avoid genotype testing?

More importantly, this may be driven by pricing considerations, especially with respect to emerging markets - there is more room for premium pricing SOF if there is no additional cost of LED or Peg-IFN. SOF is the crown jewel of their portfolio, they need to price it at max around the world to even have a chance at positive return on the VRUS purchase.

It is precisely these reasons you cite, namely the fact that GILD has a lot to recoup from the VRUS purchase, that leads me to believe that the competition will be able to carve out a nice niche competing on price.