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Biotech Behemoth Gilead In Trouble After Flagship Drug Related Death
Gilead is, by far, the largest income producer in the Nasdaq Biotech Index and today's warning from the Biotech behemoth which has dragged the stock down 2.8% this morning, is weighing heavily on the exponentially-expanding index. As Bloomberg reports, GILD said nine patients taking its hepatitis C drugs Harvoni or Sovaldi along with the heart treatment amiodarone developed abnormally slow heartbeats and one died of cardiac arrest. Now, of course, it's "just" 9 patients... so analysts will spin the diversification. The Nasdaq Biotech Index now trades with a P/E of 50x, with over 80% of the entire sector's earnings concentrated in just 5 companies... and the biggest of all just warned on the drugs that make up half its revenues!
So, as Bloomberg reports, when two of its drugs which account for half its revenues face a warning of death... perhaps it's time to reflect on the exponentiality of this lottery ticket index...
Gilead Sciences Inc. said nine patients taking its hepatitis C drugs Harvoni or Sovaldi along with the heart treatment amiodarone developed abnormally slow heartbeats and one died of cardiac arrest. Three required a pacemaker to be inserted.
Gilead said in an e-mailed drug warning to health-care providers on Friday that six cases of symptomatic bradycardia occurred within the first 24 hours of treatment and the remaining three within the first two to 12 days. The patients were all taking amiodarone, with three also using Harvoni, five receiving Sovaldi with Bristol-Myers Squibb Co.’s daclatasvir and one on Sovaldi with Johnson & Johnson’s Olysio. Gilead said the combinations aren’t recommended and it will update its product labeling.
The warning might limit the use of Sovaldi and Harvoni, which have transformed how the liver infection hepatitis C is treated, with most patients being cured after 12 weeks. The drugs also have drawn criticism for their cost of more than $1,000 a day before discounts, or as much as $94,500 for a full course of treatment.
Harvoni generated $2.11 billion in sales in the fourth quarter of last year, and Sovaldi brought in $1.73 billion, together contributing more than half of the Foster City, California-based company’s total revenue of $7.31 billion. The drugs’ hefty profit margins helped boost fourth-quarter net income more than fourfold to $3.49 billion.
A competing treatment introduced late last year by AbbVie Inc. has put pressure on Gilead’s prices.
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The machines were not happy so BTFD to fill the gap and save the day...
But that didn't last...
As The Biotech index accelerates at a faster than exponential rate...
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So you decide.. Janet told the world that Biotech valuations were 'stretched' and investors 'ignored' the Fed and went into a buying frenzy... now that Janet "no commented" last week, and GILD warns... perhaps it's time to revoist this chart...
The Nasdaq Biotech Index now trades with a P/E of 50x, with over 80% of the entire sector's earnings concentrated in just 5 companies.
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Isn't that the drug that costs $85,000 in the US but only $1000 in Europe?
So obviously go long a triple leveraged biotech etf!
I prefer Fukitol.
It's working as designed...
You can't make this shit up, or maybe you can.
Yes, and because many of the Hep C patients are inmates, US taxpayers are paying this obscene price.
First announced price was 85,000. Now there are discounts so it is about 45,000. Europe price is about the same. Third world price is in the 1,000 - 2,000 range. Take your ass to Botswana and get cured.
In Egypt, Solvadi costs under $1,000 for the full 84 coursee of treatment. The Egyptian-American developer of the drug wanted to help out Egypt, his country of birth, knowing Egypt is ranked number one worldwide in hepatitis C infection rates. The initial Solvaldi research was paid for with taxpayer money, while research was carried out at Emory University and the VA hospital in Atlanta. Once the drug was found effective, the entire operation was privatized. Standard operating procedure, since if federal funds pay for the research, the drug should belong to the federal government. If a drug turns out to be a loser, the government gets to keep the drug.
Harvoni is well tolerated and compared to past treatments is a walk in the park.
As a Hep C sufferer, you would know!
Are you 9 years old?
This site isn't for dating, perv.
Take two of these and let me know if you can call me in the morning.
Sounds like a bad drug-drug interaction. Not a problem per-se with their flagship drug. Happens unfortunately, thankfully it is rare.
Our patient's health is our top priority.
TBTF v2.0??
bullish - btfd
Sue them .
$AVXL cure alzheimers yo buy my shares
"Is there no balm in Gilead; is there no physician there? why then is not the health of the daughter of my people recovered?" Jeremiah 8:22 KJV
Take the number of patients in the field, A, multiply by the probable rate of death, B, multiply by the average out-of-court settlement, C. A times B times C equals X. If X is less than half of our net profit, we don't care.
At least, it appears that the drugs are curing the patient as opposed to keeping them on a drug for life.
I just wonder how much the marketing team gets paid to come up with the names for these drugs.
the brand names are all characters from Tolkien novels.
Seems to a lot of typical ZH shouting the alarm about a minor event. Harvoni has been well tested and offers a CURE, not a treatment to control. Some drug interactions have to be found by trial and error. Very bad for the individual, not going to stop the prescriptions for the large number needing treatment.
Same puppies always respond to the dog whistle.
Yeah those sexually addicted kids who are now problem adults, minor? I think not. If a thing is (like health care) unsustainable, it can not be sustained.
so don't mix with amiadarone, more fearmongering from ZH, plenty of drugs that shouldn't be mixed together
Gr8! I just completed 6 mo of Sovaldi but found out it didn't take (genome type 3{Vietnam}. doc wants me to start Harvoni but now I'm not sure what to do. Don't take heart meds but still......
Hold off for a few months. There is a new MRK combo that should be available in US after first of year. Well tested and a one pill a day combo. Different genotypes respond differently, as you know. Look at the published MRK research for some ideas.
Harvoni, the combo, does have a better success rate than Sovaldi alone however.
A difficulty for you now is that the genotype you have may have mutated during the treatments.
Lots of things to consider.
One guy died? M'kay. Celebrex has killed more Americans than the Viet Nam war.
Waiting for the obligatory lawsuit commercials on TV in 3...2...1...
It's not a bubble, Yellen confirmed it! What more evidence do you need?
Harvoni worked for me with no side effects. I have no trace of the virus in my blood, and after many years my liver functions have all returned to normal. I was the first patient at my hospital to be treated with Harvoni, and because it worked so well dozens of other patients are now receiving the drug. I think the price being charged by Gilead is outrageous, but it works.
It's the American way: Your money or your life pal!
The real problem is that it CURES the disease one big pop then it will drop ... they should have been looking for a treatment (like they have been doing with cancer) cures are not profitable long term... fyi I was cured last year
Sir,
The first chart is a little small. Most of us are still using US outdated tech to read your site with.
Without knowing the percentage of patients taking sofosbuvir /lepidasvir (those are the real generic names rather than the bullshit trade names) who are additionally co-medicated with amiodarone, there is no way of assessing effect on revenues/profits.
Just watch for low heartrate on those folks taking both of those drugs. BFD!
back to the drawing board....
next time R&D should know enough to develop a drug that requires the patient be maintained on it (preferably BID). and avoid all drugs that cure diseases.
It begins.
We're calling it the "foundation". Not in a Scientology way, but more in an Asimov way. It's going to hurt.
Time. You ran out of it. Oh, and, you who attempted to pimp a butterfly? Amusing. Part of the test. Our kind react badly to temporal/causality based interference when you're fucking insane and try to bend our minds to silly little localized mimetic religions. Selling it for cash [allegedly]? You're so fucked.
Watch the entire movie it's worth it.
It cost me more than my liver, young ones. Our kind are very much bastards. And, oh yes, that is the next phase. Lions, Tigers and Bears. A little bit silly to muck around with that one, but *shrug*. It's done. The blocks are very very much breakable - 'your future is at stake'. You forgot about those who we let loose, 3/4 creatures who make your parkour little ones look like flintlock guns. Even Israel with their breaking through walls military doctrine - they're close, but still so 3D.
Be Seeing You.
p.s.
Done while drunk 'cause you're not worth an awakened mind working at full tilt. Cunts. We Come. My Hands Are Now Mine. Kinky little ones, you missed the references. (It's hilarious in reference to Dane Geld and Japanese Yakuza culture). Tip. You don't do that to an awakened mind, we do it to you.
Old Skool. Quite a bit of blood debt you're wracked up, and you don't even know the cost. No, we will not wave goodbye to them. Nice century you've chosen to die on though.
Not your soul.
This is more of a problem with amiadarone than Solvaldi/Harvoni per se. Amiadarone is one nasty drug. The other Hep C treatments already warn against using with amiadarone.