Gilead Sciences Announces First Quarter 2012 Financial Results ($GILD)

Gilead Sciences, Inc. (Nasdaq: GILD) is a research-based biopharmaceutical company that discovers, develops and commercializes innovative medicines in areas of unmet medical need. With each new discovery and experimental drug candidate,  they seek to improve the care of patients suffering from life-threatening diseases around the world. Gilead's therapeutic areas of focus include HIV/AIDS, hepatitis, serious respiratory, cardiovascular, and metabolic conditions, cancer and inflammation. Their portfolio of 14 marketed products includes a number of category firsts, including the only complete treatment regimens for HIV infection available in a once-daily single pill – Atripla® (efavirenz 600 mg/emtricitabine 200 mg/tenofovir disoproxil fumarate 300 mg), approved in 2006, and Complera® (emtricitabine/rilpivirine/tenofovir disoproxil fumarate), approved in 2011.

Gilead Sciences has announced their first quarter financial results for 2012.  Total revenues for the first quarter of 2012 increased 19 percent to $2.28 billion,  with a net income of $442.0 million.  The increased revenue is attributed to product sales driven by Gilead's antiviral franchise, including sales of Atripla^(R), Truvada^(R), and the launch of Complera^(R)/Eviplera^(R) in 2011.

Read the full press release here.

Market watchers have commented on this announcement and the success of The Company's antiviral sales. Brean Murray Carret & Co. commented,

"Gilead’s HIV franchise had a strong quarter, with newly launched Complera

contributing to the strength of core products Atripla and Truvada. However, investor

focus remains on the Hepatitis C opportunity and the development plans for GS‐7977.

We continue to believe Gilead represents a compelling investment opportunity and

see the strong quarter as a reaffirmation of the value of the company’s current suite of

commercial products. We believe further upside will be derived from the approval and

commercialization of GS‐7977 for Hepatitis C next year.  Gilead’s HIV franchise had a strong quarter, with newly launched Compleracontributing to the strength of core products Atripla and Truvada. However, investorfocus remains on the Hepatitis C opportunity and the development plans for GS‐7977.We continue to believe Gilead represents a compelling investment opportunity andsee the strong quarter as a reaffirmation of the value of the company’s current suite ofcommercial products. We believe further upside will be derived from the approval andcommercialization of GS‐7977 for Hepatitis C next year."

Read the Brean Murray full report here.  

Vertex Reports First Quarter 2012 Financial Results and Provides Update on Launch of KALYDECO™ ($VRTX)

Vertex (Nasdaq: VRTX) creates new possibilities in medicine. Their team discovers, develops and commercializes innovative therapies so people with serious diseases can lead better lives. Vertex scientists and collaborators are working on new medicines to advance the treatment of hepatitis C, cystic fibrosis, epilepsy and other life-threatening diseases. Vertex isn’t a conventional pharmaceutical company. Each and every person at Vertex is driven by a passion for fearless innovation and a bold desire to transform the lives of millions with new medicines. Vertex has ongoing worldwide research programs and sites in the U.S., U.K. and Canada and employs over 1800 people.

Vertex has announced their first quarter financial results for 2012.  The Company released that it earned revenues of approximately $439 million, including net product revenues of approximately $357 million from INCIVEK^® (telaprevir) and approximately $18 million from KALYDECO^TM (ivacaftor).  KALYDECO^TM and INCIVEK^®, The Company reports continued investment which will allow them to continue multiple clinical studies including Phase 2b studies of all-oral, short-duration treatment regimens for hepatitis C and JAK3 inhibitor VX-509 for rheumatoid arthritis, as well of KALYDECO in people with types of cystic fibrosis. 

Jeffrey Leiden, M.D., Ph.D., President and Chief Executive Officer of Vertex commented,  

"Since January, approximately 600 people with cystic fibrosis have started treatment with KALYDECO in the U.S., underscoring the importance of this new medicine to the CF community and further demonstrating our ability to develop and launch transformative new medicines. With INCIVEK, we continue to treat thousands of people with hepatitis C, and we are highly encouraged by the early success seen with this medicine outside the U.S., where our collaborator Janssen has attained a market-leading position in Europe and availability of INCIVO in more than 15 countries around the world."

The full press release can be viewed here.  

Market watchers have also commented about these results.  Brean Murray Carret & Co. stated, 

"Vertex launched Kalydeco in 1Q12 and in a little more than two months captured a

large portion of G551D patients.    This is a strong indication that the closely knit CF

community was anxious for a new treatment option and reinforces the potential for a

blockbuster market opportunity if Vertex can expand beyond the G551D patient

population.   Incivek sales were disappointing coming in below our expectations. We

continue to see declining Incivek sales as a drag on the stock despite the positive early

signals from the company’s CF franchise.  Vertex launched Kalydeco in 1Q12 and in a little more than two months captured alarge portion of G551D patients.    This is a strong indication that the closely knit CFcommunity was anxious for a new treatment option and reinforces the potential for ablockbuster market opportunity if Vertex can expand beyond the G551D patientpopulation.   Incivek sales were disappointing coming in below our expectations. Wecontinue to see declining Incivek sales as a drag on the stock despite the positive earlysignals from the company’s CF franchise."

 

Read the Brean Murray full report here.  

Brean Murray, Carret on Achillion Pharmaceuticals - $ACHN

Brian Skorney of Brean Murray put out the following on Achillion Pharmaceuticals (ACHN, $7.92, Buy, $20 Target Price):

"Defending ACHN - GS-7977 Data Is Great but ACH-1625 Can Be Head-to-Head Competitive With 7977 or Be the Best Option To Combine With 7977

We believe the sharp decline in ACHN shares is being driven from a superficial read-through from the GILD/BMS data. We believe that a protease inhibitor is not a necessary component of an all-oral regimen. However, we believe that the valuation assumes that a protease inhibitor is also not sufficient in an oral combination that does not include a nuc. Abbott (ABT, $59.27, Hold) has already demonstrated that a potent PI with a differentiated resistance profile can be an anchor for an all-oral regimen. We believe the upcoming oral presentations of Abbott's PILOT (today) and COPILOT (Saturday) studies will reaffirm this thesis.

7977/052 Combo Data Actually Supports ACH-1625 Potential. We believe the high SVR rates seen in the 7977/052 combo, particularly in Gt 2/3 patients, actually supports the potential of ACH-1625 as it indicates that if you have one potent antiviral with a high barrier to resistance, you can get by with a weaker agent with a low barrier to resistance. BMS052 readily selects for resistance and is 10-15x less potent in Gt. 2/3 compared to Gt. 1b. We believe ACH-1625 is one of only four drugs in clinical development that could be effectively substituted for GS-7977 in this combo and show similar results – the others being INX-189, MK-5172, and ABT-450/r. We believe Achillion will successfully run this experiment with its own NS5a inhibitor, ACH-3102, later this year."