) recently provided an update regarding its chronic hepatitis C
virus (HCV) pipeline.
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We note that Gilead had strengthened its HCV pipeline through the
purchase of Pharmasset in early 2012. Sofosbuvir was one of the
candidates added to Gilead's pipeline through the acquisition.
Gilead is conducting multiple studies with sofosbuvir, a
Gilead presented encouraging data from one cohort of the ongoing
phase II study (ELECTRON). The study is evaluating an
interferon-free regimen of sofosbuvir, GS-5885 and ribavirin in
patients infected with genotype 1 HCV, who had previously not
responded to an interferon containing regimen.
Gilead is also evaluating a once-daily fixed-dose combination of
sofosbuvir and GS-5885 in multiple studies. The studies (phase II
and phase III) are evaluating the combination of sofosbuvir and
GS-5885 with and without ribavirin in patients infected with
genotype 1 version of HCV.
The studies include ION-1, ION-2 and LONESTAR. The ION-1 phase
III study, which commenced in Oct 2012, is evaluating the
combination of sofosbuvir and GS-5885 with and without ribavirin
(for 12 or 24 weeks) in treatment-naive patients infected with
genotype 1 HCV.
The ION-2 phase III study (n=400), expected to commence shortly,
will evaluate the fixed-dose combination containing sofosbuvir
and GS-5885 with ribavirin for 12 weeks and with and without
ribavirin for 24 weeks in treatment-experienced genotype 1
Gilead intends to seek regulatory approvals for sofosbuvir as a
combination therapy in mid-2013 based on data from 4 phase III
studies (FISSION, FUSION, POSITRON and NEUTRINO). Moreover,
Gilead intends to seek approval of the fixed-dose combination of
sofosbuvir and GS-5885 in 2014 on the basis of data from the
ION-1, ION-2 and LONESTAR studies.
Successful development of sofosbuvir would not only boost
Gilead's top line but also strengthen its position in the
lucrative HCV market. A huge population suffers from HCV
infection across the world. However, the treated population is
much lower. This leaves the field open for new treatments.
Moreover, the current standard of care comes with several side
We currently have a Neutral recommendation on Gilead. The stock
carries a Zacks Rank #4 (Sell) in the short run. Pharma stocks,
which appear to be favorably placed include
). Both these companies carry a Zacks Rank #1 (Strong Buy).