9:22 EST - Pharmacyclics (PCYC:$114.23,00$-0.43,00-0.38%) is close to FDA approval for its highly anticipated blood-cancer drug, but Bernstein thinks the stock has fulfilled its potential for now. The treatment is being developed with J&J (JNJ) and is projected to have $1B in annual sales by 2017, but the investment bank says the upside is baked into a stock that's doubled this year despite a 20% pullback the past 5 weeks. Needham concurs
I'm looking at PCYC along with the Baker Bros other BIG bet - SGEN. It seems to me that SGEN owns more of it's breakthrough drug which is already on the mkt. How much is going to be split with JNJ, does anyone really know? Doesn't the announcement of the progress of Gilead's competing drug basically halve PCYC's future cash flows? - no one has been able to adequately answer the question of Gliead's competing drug with any clarity or logic - this seems to have gotten lost in the euphoric anticipation of the pending slamdunk FDA approval. Just asking some straightforward questions.
Gilead's drug will be a very restricted application. PCYC is going for open label. At least that is what the experts have already said regarding Gilead's CLL drug vs Ibrutinib. Gilead's drug also has some safety risks that need deeper exploration.