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Bristol-Myers Squibb’s Virology Portfolio

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Sep. 28 2017, Updated 9:41 a.m. ET

Virology portfolio

Bristol-Myers Squibb’s (BMY) virology portfolio includes products for the treatment of chronic virus infections like Hepatitis B virus infections, Hepatitis C virus (or HCV) infections, and HIV infections.

The above chart shows revenues for the Hepatitis C franchise as well as other virology products over the last few quarters.

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Hepatitis B franchise

The Hepatitis B franchise includes Baraclude, an oral antiviral for the treatment of Hepatitis B infections. Baraclude revenues fell 9% to $273 million in 2Q17, compared to $299 million in 2Q16, driven by lower sales due to generic competition from Teva Pharmaceuticals’ (TEVA) entecavir tablets.

Hepatitis C franchise

Hepatitis C franchise includes the two drugs: Daklinza and Sunvepra.

Daklinza is a drug used in combination with sofosbuvir, with or without ribavirin, for the treatment of chronic hepatitis C virus infections of Genotype 1 or Genotype 3.

Sunvepra is used for the treatment of chronic hepatitis C virus infections of Genotype 1.

The combined revenues for these drugs fell ~79% to $112 million in 2Q17, compared to $546 million in 2Q16, mainly due to competition in international markets.

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HIV franchise

The HIV franchise includes two drugs—Reyataz and Sustiva. These drugs are used in combination with other antivirals for the treatment of HIV-1 infections.

Reyataz reported revenues of $188 million in 2Q17, a 24% fall from the $247 million in 2Q16, due to lower sales following competition from other HIV drugs.

Sustiva reported revenues of $188 million in 2Q17, a 31% fall from revenues of $271 in 2Q16, due to lower sales following the loss of exclusivity and competition from other drugs.

To divest company-specific risks, investors can consider ETFs like the VanEck Vectors Pharmaceutical ETF (PPH), which invests 5.1% of its total assets in Bristol-Myers Squibb (BMY). PPH also invests 8.9% of its total assets in Johnson & Johnson (JNJ), 5.0% in Sanofi (SNY), and 4.7% in AstraZeneca (AZN).

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