Gilead Sciences Inc. (GILD) recently announced results from a mid-stage trial of its four-in-one combination pill, Quad, which is being evaluated for the treatment of HIV. It was observed that after 48 weeks, about 90% of the patients in the Quad arm, experienced a reduction in viral load factor (less than 50 copies/mL) as compared to 83% in the Atripla arm.
Both study arms, Quad and Atripla, showed the same safety, tolerability and discontinuation rates. However, the Quad regimen experienced fewer central nervous system adverse events, including abnormal dreams/nightmares, dizziness and anxiety.
Quad pill consists of elvitegravir, cobicistat and Truvada (a fixed dose, once daily tablet containing Viread and Emtriva). Quad is currently in a phase III study that was initiated in April 2010, with results expected in 2011. We believe that, on approval, Quad has the potential to reach blockbuster status.
Neutral on Gilead
We currently have a Neutral recommendation on Gilead, which is supported by a Zacks #3 Rank (short-term Hold rating). We remain optimistic on the growth prospects of the company’s HIV drugs, Truvada and Atripla. The company is also looking to increase its presence in the Asian hepatitis B virus (HBV) market, where the infection is quite prevalent.
However much we are encouraged by the progress of the company’s pipeline, we remain concerned about the price reduction in many European countries and were particularly disappointed to see Gilead cut its fiscal 2010 guidance yet again following the release of second-quarter results.
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