uploads///Viekira Revenues

Why Viekira Could Witness a Modest Revenue Fall in 2017

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Jun. 14 2017, Updated 7:37 a.m. ET

Viekira’s revenue trend

In 2016, AbbVie’s (ABBV) Viekira generated revenue of ~$1.5 billion, a fall of ~7% year-over-year (or YoY). In 1Q17, the drug reported revenue of ~$236 million, which reflected a 15% fall quarter-over-quarter.

This fall in revenue was mostly due to increased competition and price erosion. The drug faces stiff competition from Merck & Co.’s (MRK) Zepatier, Gilead Sciences’ (GILD) Sovaldi, Harvoni, and Epclusa, Bristol-Myers Squibb’s Daklinza, and Johnson & Johnson’s (JNJ) Olysio. The high competition in the market for hepatitis C drugs coupled with the availability of generics likely affected Viekira’s sales.

The above graph represents Viekira’s sales curve from 1Q16 to 1Q17.

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About Viekira

Viekira is a combination drug consisting of dasabuvir, ombitasvir, paritaprevir, and ritonavir. The drug is indicated for the treatment of genotype 1 chronic hepatitis C infection. In Europe, the drug received approval for the treatments of both genotype 1 and genotype 4 hepatitis C virus (or HCV) infections. The drug may be administered with or without ribavirin.

In July 2015, the FDA approved AbbVie’s Technivie (ombitasvir, paritaprevir, and ritonavir) in combination with ribavirin for the treatment of genotype 4 HCV infection in the United States.

AbbVie’s other anti-viral products

AbbVie’s antiviral products other than its HCV franchise include Kaletra (lopinavir/ritonavir) for the treatment of HIV-1 infection, Norvir (ritonavir), a protease inhibitor for HIV-1 therapy, and Synagis (palivizumab) for the treatment of respiratory syncytial virus (or RSV) infection.

Synagis is marketed only outside the United States. The revenue growth of AbbVie’s virology products may be driving the share price of the Vanguard High Dividend Yield ETF (VYM). AbbVie makes up ~1.2% of VYM’s total portfolio holdings.

In the next article, we’ll discuss AbbVie’s prostate cancer drug, Lupron.

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