There was a lot of news in the hepatitis C space Monday out of the meeting of the American Association for the Study of Liver Diseases.
And big positive news came from both Abbott Laboratories
) and Bristol-Myers Squibb
). Both stocks are members of my Jubak's Picks portfolio
Abbott announced that a test group that took a mixture of Abbott drugs along with the antiviral ribavirin showed that the combination wiped out all traces of the hepatitis virus in 99% of patients with the liver disease.
Bristol-Myers, also racing to develop a replacement to the standard year-long injection treatment, reported that its triple combination therapy of NS5A daclatasvir, protease inhibitor, and non-nuc NS5B showed a 94% early cure rate for patients with the hepatitis virus. While these results show that Bristol-Myers still lags the leaders -- Abbott and Gilead Sciences
) -- the report does put Bristol-Myers back into the competition. That’s major good news for the stock because Wall Street had pretty much written off Bristol-Myers’ prospects in the hepatitis C market after it ended testing of its main drug candidate BMS-094 on worrying safety data.
Gilead is currently conducting an 800-person trial (versus Abbott’s 571-patient trial) of a therapy that requires fewer pills than Abbott’s. Wall Street still thinks this race is Gilead’s to lose. Credit Suisse, for example, forecasts that Gilead will have $3.8 billion in hepatitis C drug sales in 2020 to $2.5 billion at Abbott and $1.3 billion at Bristol-Myers. And there’s no doubt that Gilead’s approach has an edge since it doesn’t user ribavirin, which doctors would prefer not to use.
But these results do show that the hepatitis C market is still a horse race. Other horses in the race include Vertex Pharmaceuticals
) and Achillion Pharmaceuticals
Abbott Laboratories was, briefly, above my target price Tuesday, but the company’s earnings report knocked the stock back down. I’ll have an update with a new target price Thursday.
At the time of this writing, Jim Jubak didn't own shares of any companies mentioned in this post in personal portfolios. The mutual fund he manages, Jubak Global Equity Fund (JUBAX), may or may not own positions in any stock mentioned. The fund did not own shares of Abbott Laboratories or Bristol-Myers or any other stock mentioned in this post as of the end of June. For a full list of the stocks in the fund as of the end of the most recent quarter, see the fund's portfolio here.