Merck (MRK) Over-Hyped in Hep C, Says Wells Fargo (GILD) (ABBV)

Wells Fargo analyst Brian Abrahams said Merck (NYSE: MRK) may be over-hyped as a hepC competitor to Gilead Sciences (NASDAQ: GILD).

"We are attending the EASL conference in London UK, where Merck has just pressreleased additional data from its CWORTHY study of '5172 and '8742 in genotype 1 Hep C," said Abrahams. "We believe this data supports our view that Merck is less important as a future competitive threat to Gilead, and that the Street may be overestimating the likelihood of this becoming an interchangeable three or four handed alloral HCV market in the next three years."

"Our thesis regarding hep C competitive dynamics is that AbbVie's (NYSE: ABBV) regimen may be underappreciated as a competitor to GILD, given its efficacy across multiple patient types and clean safety (though it still has some disadvantages versus GILD, but that Merck's regimen may be over-hyped as a potential competitive threat given
intrinsic potency limitations of a nucfree PI/NS5a regimen, the narrower therapeutic window of Merck's PI, and breakthroughs that have already been observed, all of which we think will make it difficult for Merck's regimen to look as competitive with GILD across the broadest range of patients and treatment durations," he added. "We believe today's data supports our thesis."

For an analyst ratings summary and ratings history on Gilead Sciences click here. For more ratings news on Gilead Sciences click here.

Shares of Gilead Sciences closed at $70.65 yesterday.

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