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A Look at Gilead Sciences’ Key Growth Drivers in 2017

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Part 2
A Look at Gilead Sciences’ Key Growth Drivers in 2017 PART 2 OF 6

TAF-Based Regimens Could Boost Gilead Sciences’ Revenue Growth

TAF-based regimen’s revenue trends

Gilead Sciences’ (GILD) tenofovir alafenamide fumarate (or TAF) based regimens have seen high adoption rates in the US and European markets.

In 1Q17, TAF-based regimens generated revenues of around $1.2 billion, a quarter-over-quarter growth of 44% from 4Q16. Presently, TAF-based regimens are key revenue drivers of Gilead’s HIV franchise.

TAF-Based Regimens Could Boost Gilead Sciences’ Revenue Growth

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The above graph presents the sales trajectory of Gilead Sciences’ TAF-containing HIV products.

About Gilead Sciences’ TAF regimen

In 2016, TAF-containing regimens accounted for around 37% of the company’s HIV prescription volume. Gilead estimated that most patients have switched from the company’s previous tenofovir disoproxil fumarate (or TDF) regimens, and around 10% of patient switches are from non-Gilead treatments.

By the end of 2016, Gilead had launched Odefsey and Descovy in 11 and 13 countries, respectively, outside the US. The company expects to commercialize these therapies in more markets in 2017, which may further propel the revenue growth of Odefsy and Descovy.

In 1Q17, Gilead’s TAF-based portfolio surpassed $1 billion in revenues. Currently, the company’s TAF regimen broadly reflects around 42% of its total HIV prescription volume. Genvoya accounted for the largest revenue share in Gilead’s TAF portfolio. Genvoya generated revenues of around $769 million, while Odefsey and Descovy generated revenues of $227 million and $251 million, respectively. In 1Q17, Genvoya became the top-selling HIV product for Gilead exceeding the sales of Truvada and Atripla. To learn more about Gilead’s TAF-based regimen, please read How Could TAF-Based Regimen Drive Gilead Sciences’ Growth?

Gilead’s TAF-based portfolio received preferred status, treatment guidelines, and EACS guidelines in four major European markets. The company expects to receive the same status in France by 3Q17.

Gilead’s peers in the HIV therapy market include Johnson & Johnson (JNJ), Pfizer (PFE), and GlaxoSmithKline (GSK). The success of Gilead’s TAF portfolio may help the Health Care Select Sector SPDR Fund ETF (XLV). Gilead Sciences accounts for around 3.0% of XLV’s total portfolio holdings.

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