Genvoya Could Drive Gilead Sciences’ Revenue Growth in 2017



Genvoya’s revenue trends

In 1Q17, Gilead Sciences’ (GILD) HIV drug Genvoya generated revenues of around $769 million, a 37% increase quarter-over-quarter. The drug has seen double-digit sequential sales growth in every quarter since its launch in November 2015. The drug surpassed the $1 billion revenue mark within one year of its launch. In 2016, Genvoya generated revenues of around $1.5 billion. The below graph shows the revenue trajectory of Genvoya from 1Q16 to 1Q17.

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About Genvoya

Genvoya is Gilead’s first tenofovir alafenamide fumarate (or TAF) based single-tablet regimen consisting of a fixed-dose combination of cobicistat, emtricitabine, elvitegravir, and tenofovir alafenamide. The drug is indicated for the treatment of patients over age 12 who suffer from HIV-1.

Gilead developed Genvoya as a prodrug form of tenofovir. Unlike traditional HIV drugs, the prodrug TAF doesn’t allow for a higher concentration in the bloodstream and instead directs it to the HIV-1 replicating cells, which helps to reduce the drug’s side effects. The superior clinical trial data will likely help the company commercialize the drug internationally. To learn more about Genvoya, please refer to Genvoya Becomes Most Prescribed Regimen for HIV Patients in US.

According to the US Center for Disease Control and Prevention (or CDC), over 1.2 million individuals are suffering from HIV. CDC also reported that 39,513 new patients were diagnosed with HIV in 2015.

Currently, Genvoya is the most prescribed HIV regimen in the US and second most in Spain among treatment-naïve patients. The drug is witnessing a strong uptake in European markets. In 1Q17, Gilead launched Genvoya in France and Italy. The drug is currently available in 23 European markets, which will further propel the sales volume of the drug in 2017.

The success of Genvoya may fuel the iShares Nasdaq Biotechnology ETF (IBB). Gilead Sciences accounts for about 7.5% of IBB’s total portfolio holdings.

Gilead Sciences faces tough competition from other players like GlaxoSmithKline (GSK), Pfizer (PFE), ViiV Healthcare, and Johnson & Johnson (JNJ).


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