Copyright © 2015 Evaluate Ltd. All rights reserved.
Key Product Events Negatively Impacting
Shareholder Value in 2014
Gilead’s share price fell 14% following Express Scripts’s decision
to exclude Sovaldi and Harvoni.
The analysis below highlights the top 15 product events that negatively
impacted shareholder value on the day of the announcement (as
measured by a change in market capitalisation) in 2014. In December
2014, over $23bn was wiped oﬀ Gilead’s market capitalisation following
Express Scripts announcement that it would not cover the company’s
Hepatitis C drugs, Sovaldi and Harvoni. Disappointing Phase III results
for Roche’s anticancer therapeutic Kadcyla and its Alzeimer’s treatment
gantenerumab resulted in a 6% fall in its share price, or $15.8bn of the
Commentary on Share Price Change
22 Dec 14
22 Dec: Express Scripts says it will exclusively cover
AbbVie's newly-approved hep C therapy Viekira Pak,
under a deal struck between the companies, to the
exclusion of Gilead's Harvoni and Sovaldi. Bank of
America downgrades rating to "underperform" from
"neutral" and lowers price target to $87 from $130.
Phase III Trial
19 Dec 14
19 Dec: Phase III trial of company's anticancer
therapeutics, Kadcyla plus Perjeta, did not show
signiﬁcant improvement in PFS compared to Herceptin
and chemotherapy. Company also reports the
discontinuation of its phase III trial of Alzheimer's
disease treatment, gantenerumab, citing poor results.
21 Mar 14
21 Mar: Gilead Sciences receives a notice from several
democrats requesting an explanation of the pricing
methods behind its hepatitis C drug, Sovaldi, which
has been priced at $1,000 a day, raising fears for other
high-cost treatments such as Biogen Idec's hemophilia B
09 Jun 14
9 Jun: Merck plans to buy Idenix for $3.85bn, raising
competition for Gilead's hepatitis C drug, Sovaldi.
22 Oct 14
23 Oct: Q3 sales of MS treatment Tecﬁdera miss
expectations, and the company reports the ﬁrst case of
progressive multifocal leukoencephalopathy in a patient
taking the drug.
14 Nov 14
14 Nov: Citi removes company from its "most preferred
pharma" list, citing concerns about the company's
multiple sclerosis treatment, Anti-LINGO-1, as well as
Phase II Trial
14 Jan 14
Shares continue to fall after company's CEO, Mark
Pruzanski, disclosed on 13 Jan that the company may
require a partner to help bring its lead drug, nonalcoholic
steatohepatitis treatment, obeticholic acid, to market;
the company also released additional phase IIb trial data
for the drug which indicated that patients receiving the
drug had higher cholesterol levels compared with those
using a placebo.
04 Nov 14
4 Nov: Q3'14 sales miss forecasts on slower than
expected uptake of eye drug Eylea, and the company
lowers FY sales forecasts for the drug.
09 Jun 14
9 Jun: AbbVie and Abbott Laboratories to face lawsuits
combined in one Chicago court over claims that
the companies hid the risks of using testosterone-
replacement drug, AndroGel.
Phase II Trial
13 Jan 14
13 Jan: Company reports additional data from a phase
IIb trial for its nonalcoholic steatohepatitis treatment,
obeticholic acid, which indicates that patients receiving
the drug had disproportionate lipid abnormalities,
including higher cholesterol levels, compared with those
using a placebo. Company's CEO, Mark Pruzanski, also
discloses that the company may require a partner to help
bring obeticholic acid to market.
22 May 2015
part 1 of 2
World Preview 2015