Sovaldi Pricing Controversy Offers Little Read-Through for PSCK9s - Canaccord (REGN) (GILD) (AMGN)

Canaccord Genuity affirms Regeneron Pharma (Nasdaq: REGN) at Buy with a price target of $460, saying Gilead's (Nasdaq: GILD) Sovaldi pricing controversy carries limited read through on PCSK9 drugs.

Analyst John Newman said, We estimate PCSK9 cost of ~$6,000/patient/yr, versus Sovaldi cost of ~$84,000/patient/year, likely to result in a much slower cost ramp for PCSK9 drugs. Also, PCSK9 drugs will not be used front-line, but rather in patients failing generic statins. Sovaldi demonstrated a ~90% cure rate in HepC vs prior cure rates of ~50%, whereas patients with high cholesterol are not critically ill and can often be maintained with generic statin drugs. Therefore, we expect the majority of PCSK9 usage to occur in patients failing statins, limiting the cost impact for payors. Specifically, we believe that CVS’ thinking that PCSK9 drugs may be used in the entire high cholesterol population is not realistic and overestimates the cost impact.

Newman was referrring to drugs from both Regeneron and Amgen (Nasdaq: AMGN).

For an analyst ratings summary and ratings history on Regeneron Pharma click here. For more ratings news on Regeneron Pharma click here.

Regeneron Pharma closed at $426.60 yesterday.

You May Also Be Interested In

• HSBC Downgrades Feng Tay Enterprises (9910:TT) to Hold
• Yageo Corp. (2327:TT) (YAGOY) PT Lowered to NT$656 at HSBC
• Lithium Americas Corp (LAC) Prices 55M Share Offering at $5/sh