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Genvoya Becomes Most Prescribed Regimen for HIV Patients in US

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TAF-based HIV drugs

Owing to the strong efficacy and safety profile, Gilead Sciences (GILD) has managed to achieve reimbursement for its tenofovir alafenamide (or TAF) HIV drugs in the US as well as 11 countries in Europe. Strong demand for these drugs enabled the company to report revenues of $2.2 billion for its HIV franchise in the US, which was a sequential rise of around 11%. The company also managed to earn $755 million in Europe in 2Q16, which was a sequential increase of about 5%.

If Gilead Sciences continues to witness strong sales of its TAF-based HIV drugs, it may boost the company’s share prices as well as those of the iShares Russell 1000 Growth ETF (IWF). Gilead Sciences makes up about 1.0% of IWF’s total portfolio holdings.

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Genvoya launch

As seen in the above diagram, Genvoya, Gilead Sciences’ first TAF-based HIV drug, has seen one of the most successful HIV drug launches in the US. Currently, Genvoya is the most prescribed HIV regimen for both new patients as well as those who switch from their existing regimens. Approximately 78% of Genvoya’s patients have switched from other regimens. 50% of these patients originally used Stribild while 10% of the patients used non-Gilead products.

Additionally, Genvoya has also managed to become the most prescribed regimen in Germany. The company expects to launch Genvoya in France, the United Kingdom, and Italy in the second half of 2016.

Gilead Sciences also expects strong demand trends for newly launched TAF-based drugs Odefsey and Descovy. More than 90% of patients who use these drugs have switched from other HIV regimens. With the TAF-based drug portfolio, Gilead Sciences expects to pose strong competition to other HIV players such as Pfizer (PFE), GlaxoSmithKline (GSK), and Johnson & Johnson (JNJ).

Truvada sales

About 30% of the total demand for Truvada is as a pre-exposure prophylaxis (or prep) drug. According to Gilead Sciences’ projections, about 60,000 to 70,000 patients used Truvada as prep in the US in 2Q16.

In the next article, we’ll discuss Gilead Sciences’ cost structure in 2Q16 in greater detail.

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