Eloctate demand trends
In 1Q17, Bioverativ’s Eloctate witnessed revenues close to $155.9 million, which is about $48.0 million more YoY (year-over-year). Due to a large amount of real world data supporting the drug’s efficacy and safety profile, hemophilia A patients have been increasingly shifting from short-acting agents to Eloctate in 2017.
As patients increasingly prefer extended half-life drugs over short-acting ones and opt for prophylactic regimens over demand therapies, Eloctate should see a rapid increase in demand. Eloctate is also expected to benefit from increasing drug access across all major markets as well as demand from women with a recessive gene for hemophilia.
If these dynamics give a healthy boost to Eloctate’s revenues in future quarters, it may have a favorable impact on Bioverativ stock as well as the Vanguard Small-Cap Growth ETF (VBK). Bioverativ makes up about 0.44% of VBK’s total portfolio holdings.
The above graph shows the revenue trend for Eloctate from 1Q16 to 1Q17.
On June 6, 2017, Bioverativ and Swedish Orphan Biovitrum AB (or Sobi) announced plans to publish positive data related to an improvement in joint health for severe hemophilia A and hemophilia B patients treated with extended half-life therapies Alprolix and Eloctate. Debilitating joint conditions are common complications for patients with severe hemophilia.
Eloctate is also being studied as immune tolerance induction therapy for hemophilia A patients who develop an inhibitory reaction to factor VIII. Bioverativ also plans to study Alprolix and Eloctate for women with a recessive hemophilia gene who suffer from bleeding episodes.
Geographic market expansion
Bioverativ targets the United States as well as other geographies such as Latin America and Austria for Alprolix and Eloctate. There are around 20,000 hemophilia patients in Latin America, with Brazil ranking as the third-largest market for this condition. However, the timing of the entry of these drugs into these markets, despite regulatory approvals, depends mainly on the completion of reimbursement negotiations as well as the setup of supply infrastructures in these markets.