Gilead Sciences: Can Express Scripts Really Do That? Maxim Analyst Comments


Maxim’s healthcare analyst Jason Kolbert joined Piper Jaffray today, commenting on Gilead Sciences (NASDAQ:GILD), following the news that Express Scripps (NASDAQ:ESRX) will only cover AbbVie’s (NYSE:ABBV) HCV therapy Viekira Pak which was just approved last week. Kolbert reiterated GILD shares with a Buy rating and the price target is unchanged at $127.

Kolbert wrote, “Our understanding is that the list price for the competing regimen will be $83K at a discount to Gilead’s Harvoni list price (full time duration of therapy). Our understanding is that AbbVie is offering some important level of discounting to Express Scripps for this privilege.”

The analyst continued, “Have a little faith in Gilead. Gilead is a master marketing company and Harvoni is the best HCV therapy in the marketplace in a Single Tablet Regimen (STR). Let’s not under-estimate patient compliance and ease of use. We expect price and share competition, which is factored into our model. Ask yourself, as a patient which therapy would you choose? Remember too that shorter regimens could put Harvoni at a lower total cost point vs. Viekira Pak.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Jason Kolbert has a total average return of 4.1% and a 41.2% success rate. Kolbert has a 29.2% average return when recommending GILD, and is ranked #860 out of 3423 analysts.

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