Change in fundamentals yet no change in share price
Today's price actionis a vote of confidence for GILD management's ability to negotiate the approval process and another big vote of no confidence in the ability of VRTX management to capitalize on BMY's failure.
Silly given that VRTX has brought 3 drugs to the market, and has several more promising candidates making their way through the regulatory process.
If 7977 hits any roadblocks in its development path, GILD is screwed. For instance, it could prove necessary to combine a nuc like 7977 with a protease inhibitor in order to produce a high frequency of sustained viral responses for multiple HepC genotypes.
Incivek is underrated by the Street at the moment.