Wells Fargo Maintains Outperform On Gilead Sciences Following Harvoni/Sovaldi IMS Data

In a research report issued this morning, analyst Brian Abrahams of Wells Fargo maintained an Outperform rating on Gilead Sciences (NASDAQ:GILD), as GILD’s Harvoni/Sovaldi IMS data weekended 11/28/14 was released.

Abrahams noted, “This week’s Harvoni NRx were down almost-precisely 20%, which we attribute to the Thanksgiving holiday; this suggests Harvoni NRx are settling down at a run-rate of 3,000 scrips/week, continuing to indicate Harvoni TRx could exit 2014 at a run-rate of around about 7,000 scrips/week (excluding holiday effects).” 

The analyst continued, “Specifically, Harvoni NRx (key measure, in our view, as this reflects new patient starts) were down week over week, to 2,411 from last week’s 3,008, 19.85%. We assume multiple drivers in place, with potential for warehoused patients plus increased demand due to Harvoni’s better convenience offset by potential insurance barriers (including those awaiting ABBV availability) and lower treatment initiations looking ahead to the December holiday season.”

Bottom line, “GILD’s total HCV franchise sales should exit the year at a favorable steady-state into the ABBV launch, which could help reduce concerns about the overall market opportunity next year and expand the multiple.”

According to TipRanks.com, which measures analysts’ and bloggers’ success rate based on how their calls perform, analyst Brian Abrahams has a total average return of 7.8% and a 59.0% success rate. Abrahams has a 23.8% average return when recommending GILD, and is ranked #768 out of 3427 analysts.


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