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How Is Baxalta Leading the Hematology Space?

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Baxalta’s hematology drugs

Baxalta’s (BXLT) hematology segment includes hemophilia and inhibitor therapies. The portfolio earned $3.6 billion in 2015, reflecting an annual decline of 3% during the year. Hematology formed ~59% of the company’s total revenue in fiscal 2015.

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Hemophilia drugs’ performance

Hemophilia drugs’ contribution stood at 46% of total Baxalta sales in 2015. Whereas the drugs recorded sales amounting to $1.3 billion in the United States, sales from international operations stood at $1.5 billion during the year. International volume growth was supported by the rise in Advate shipments to Brazil.

The launch of Adynovate in November 2015 boosted the volumes of the hemophilia drugs. Baxalta offers the broadest range of hemophilia drugs.

There was modest annual growth in the hemophilia drug space due to fierce competition and the launch of new drugs. Baxalta’s Advate competes with Pfizer’s (PFE) Xyntha, Biogen’s (BIIB) Eloctate, and Novo Nordisk’s (NVO) Novoeight.

Hemophilia market

The global hemophilia market is valued at $6 billion to $8 billion in terms of sales. As hemophilia is a rare disease, companies can charge premium pricing for their innovative drugs. With the pricing advantage, the hemophilia space is competitive, with many companies trying to come up with new therapies.

Inhibitor therapies

The class includes drugs to treat “patients with congenital hemophilia A or B who have developed inhibitors, as well as patients that have developed acquired hemophilia A due to an inhibitor.”

Economic, industrial, and company-specific news results in volatility in stock prices. To get exposure to Baxalta and control excessive direct risks, investors could opt to invest in the Vanguard Growth ETF (VUG). Baxalta accounts for 0.30% of the fund’s total holdings. In the next part of this series, we’ll discuss the current treatment options for hemophilia patients.

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