AbbVie (NYSE: ABBV) Latest Drug Could Push Gilead Sciences (NASDAQ:GILD) Off the Top

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Drugs going off-patent has damaged the pharmaceutical world intensely. Pharma companies thrive upon their drug business, the originality of their products as well as the volume of sales these drugs make in the market. But once these drugs are replicated, the prices decline. That has been happening for quite a while with the pharma companies, and it is having adverse effects on the revenue being generated. But it has played both ways, on one hand, these companies are losing revenue, on the other hand this creates more room for innovation. It is also adding up the competitive pressure in the market that forces companies to do better to satisfy consumers.

The hepatitis C drug dubbed ‘’the terminator’’ is making waves in the market and is expected to yield good profit figures. Gilead Sciences (NASDAQ: GILD) is the leader at the moment, with its latest drug in the market, Sovaldi. The drug has already made 8.5 billion dollars in sales and this is just the beginning. Another drug called Harvoni, which is a once a day pill, has been approved by the FDA and will help Gilead Sciences (NASDAQ: GILD) dominate the Pharma market. Harvoni’s cure rate is 99 percent in merely 8 weeks, rather than the 12 weeks other pharmacy companies guarantee. Harvoni is falling hard on other pharmacy companies like Bristol-Myers Squibb (NYSE: BMY) and Johnson & Johnson’s (NYSE: JNJ).

To neutralize the dominance of Harvoni, AbbVie (NYSE: ABBV) will introduce its triple combo therapy drug to compete with Harvoni at the start of the next year. The drug has been made in association with Enanta.

This drug is expected to generate 3 billion dollars initial sale for AbbVie (NYSE: ABBV). AbbVie (NYSE: ABBV)’s iconic drug will also generate 20 percent more market than Gilead Sciences (NASDAQ: GILD)’s Harvoni. AbbVie (NYSE: ABBV) isn’t really known for posting large numbers, but with this drug the company is confident that it will take the health providers market by storm, as it is the current most effective cure for the chronic hepatitis.

Harvoni’s competitive advantage is quicker treatment with minimum dosage. However, this may not be enough to attract consumer. AbbVie (NYSE: ABBV)’s triple combo therapy seems more robust than Harvoni. Intake of two pills twice a day may not be much of a reason, so Gilead Sciences (NASDAQ: GILD)’s Harvoni doesn’t really have anything unique to offer; except of course the benefit that Gilead Sciences (NASDAQ: GILD) will have lesser pills to manufacture.

Harvoni will cost $94,500 for a 12 week course. AbbVie (NYSE: ABBV) can be the preferred brand, if it lowers the price in comparison with Harvoni’s product, which is clearly overpriced.

AbbVie (NYSE: ABBV) has a reputation of creating opportunities by defying the odds. Its lead drug is still out there in the market, posting large sales despite being ridiculed initially. The new drug that AbbVie (NYSE: ABBV) has created might prove more effective than Harvoni’s, considering the fact that the market is already inclined towards AbbVie (NYSE: ABBV).

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