This Day On The Street
Continue to site
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Gilead's Sovaldi Hep C Drug Launch Strong

The early commercial launch of Gilead Sciences' (GILD - Get Report) hepatitis C pill Sovaldi looks really good.

Total prescriptions (TRx) for Sovaldi rose almost 70% to 1,764 for the week ended Jan. 10, according to IMS Health. Previous weeks included the holidays, so too much can be made about the week-over-week growth. Still, the Solvadi scripts to date are impressive and point to early, strong demand for the new Hep C pill. 

ISI Group analyst Mark Schoenebaum is tracking the Sovaldi launch closely for his investor clients. Over the weekend, he sent out the following observations.

1. The total TRx for Sovaldi over the first five weeks of its launch (despite two major holidays) is >3x the TRx for Incivek over the first five weeks of its launch.

2. If TRx were to only remain flat through year end and we assume 20% discounting on price and a similar capture rate to Incivek for sales from IMS TRx, we estimate that FY 2014 sales could be ~$2.4 Bn. (The current sell side estimate for FY'14 Sovaldi sales is ~$2.5 Bn although my buy side surveys of US Sovaldi sales have suggested YOUR estimates have been higher, ~$3 Bn)

Schoenebaum gave me permission to share this chart his team created, which shows graphically how the Gilead Sovaldi commercial launch compares to Vertex Pharma's (VRTX - Get Report) launch of Incivek. 

Sovaldi is the blue line; Incivek in red.

Gilead shares closed Friday at $78.40 and are up 1.4% to $79.50 in pre-market trading Tuesday.

Adam Feuerstein writes regularly for TheStreet. In keeping with company editorial policy, he doesn't own or short individual stocks, although he owns stock in TheStreet. He also doesn't invest in hedge funds or other private investment partnerships. Feuerstein appreciates your feedback; click here to send him an email.


Chart of I:DJI
DOW 17,081.89 -49.97 -0.29%
S&P 500 2,014.89 +15.91 0.80%
NASDAQ 4,796.6090 -42.0340 -0.87%

Adam's Tweets

Select the service that is right for you!

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
Real Money Pro

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Trifecta Stocks

Trifecta Stocks analyzes over 4,000 equities weekly to find the elite 1% of stocks that pass rigorous quantitative, fundamental and technical tests.

Product Features:
  • Model portfolio
  • Trade alerts
  • Recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Growth Seeker

Chris Versace, using sophisticated stock screening and fundamental research, identifies potentially explosive small and mid-cap stocks.

Product Features:
  • Model portfolio
  • Small-cap and mid-cap focus
  • Intraday trade alerts
  • Weekly roundups
Daily Swing Trade

Master swing trader Alan Farley uses his sophisticated software screens to review thousands of stocks each day for you, to find just the handful that meet his demanding criteria.

Product Features:
  • Daily commentary and coaching on swing trading
  • Technical charts and analysis
Top Rated Stocks Top Rated Funds Top Rated ETFs