The Biotech Stocks JMP Is Watching – Merck & Company, Inc …
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In a report published Thursday, JMP Securities analysts expressed their views on Biotechnology stocks after the EASL abstracts were made available ahead of the European liver meeting. The analysts have a Market Perform rating on Merck & Co. Inc (NYSE: MRK). They also provided updates for AbbVie Inc (NASDAQ: ABBV), Gilead Sciences Inc (NASDAQ: GILD) and Achillion Pharmaceuticals, Inc (NASDAQ: ACHN).
In the report, JMP Securities noted, “Our big picture view on the hepatitis C treatment landscape is that a new regimen from MRK and a second-generation regimen from ABBV/ENTA will increase competitive pressure in the market starting in 2016-2017, although we do not view these regimens as having an advantage over GILD’s Harvoni in GT1 patients, leading to likely further pricing pressure.”
The race is on among these players, including ACHN, to achieve a shortened HCV treatment duration of 6-8 weeks. The analysts believe a four-week duration would be “unrealistic.” GILD is scheduled to releases data at the EASL meeting later in April, with MRK and ACHN to release data potentially by end of this year.
“Based on the data in the abstracts today, our view does not change that ACHN’s nuc might be an attractive acquisition target (although likely not until longer-term data are available by YE15), and the company will remain in a news vacuum until then,” the analysts said.
ENTA is poised to benefit from “improved economics on ABBV’s dual regimen, which appears to have competitive SVR rates (proxy for cure).”
“Phase 3 C-EDGE data for MRK’s 12-week dual combination of grazoprevir/elbasvir in HCV/HIV and treatment experienced patients appear solid and are generally consistent to slightly better than Phase2 results…MRK remains on track to file its NDA for the combination in 1H15, and potential approval in 1H16,” the analysts wrote.
“ABBV released top-line data for its next-generation dual regimen with 99% SVR, with 12 weeks of therapy, in fairly easy to treat non-cirrhotic GT1 patients (data not at EASL). We await the data for the eight-week duration and in a more difficult to treat cirrhotics later this year…Assuming a Phase 3 start by YE15, a next-generation dual combination could be available on the market in 2H17 or early 2018,” the report mentioned.
“Additional data for GILD’s triple combination in the SYNERGY study (SOF/LDV +/- PI or non-nuc) suggest a no-go for the four-week duration in early fibrotics or six-week duration in later-stage fibrotics,” the analysts added.
Latest Ratings for MRK
Date
Firm
Action
From
To
Mar 2015
Leerink Swann
Maintains
Market Perform
Mar 2015
Jefferies
Maintains
Hold
Feb 2015
Jefferies
Maintains
Hold
View More Analyst Ratings for MRK
View the Latest Analyst Ratings
Posted-In: JMP SecuritiesAnalyst Color Reiteration Analyst Ratings
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The Biotech Stocks JMP Is Watching – Merck & Company, Inc …
