The deal is for the development and commercialization of a new once-daily single tablet regimen that contains Gilead's tenofovir alafenamide (TAF) and emtricitabine, as well as Janssen's rilpivirine. The two parties reached the original agreement in 2009 to develop and market Complera, marketed as Eviplera in the European Union.
Complera combines tenofovir disoproxil fumarate, emtricitabine and rilpivirine into a once-daily tablet. Gilead said it would begin Phase 3 studies of the new emtricitabine/rilpivirine/TAF tablet in the next few months.
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Gilead would manufacture, register, distribute, and commercialize the tablet in most countries, while Janssen would distribute it in approximately 17 markets, pending the product's approval.
Morgan Stanley also upgraded Gilead on Monday to "overweight" from "equal weight" and increased its price target to $104 from $100.
"We see fear over AbbVie pricing as an opportunity," the firm wrote. "We believe the net pricing impact from AbbVie is ~15%, and that Gilead can maintain ~75% share...Market's misinterpretation of the extent of the pricing risk presents an attractive entry into GILD."
Separately, TheStreet Ratings team rates GILEAD SCIENCES INC as a "buy" with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: