Cause basically this deal with Janssen gives up all rights to the drug (so its like ACHN never had it) in exchange for max 20% royalty (which by the time its marketable will be nil).
Watch the stock price. Market doesn't get it either. ACHN heading back to where it was before hep-c drug announced + a few cents for potential royalty. My guess.........about $4.
UP $9 ah. That's almost 2.2b mkt cap increase. If CF drug approved and sold to every possible patient (8500) at $300k each, that's 2.5b. VRTX losing money now. Orkambi could bring in 3.77/shr. So eps would be less than 3.77 annually. Thus at $133/shr VRTX has multiple of 35+......in the future.
Makes sense to me (not), just like GILD pps makes sense to me (not).
did they just guide down from (4q14) or up (from 1q14)?
A 4.5%+ day is nice, but still criminally undervalued.
I share your pain and frustration. BTW, based on 1Q revs and script numbers, Sovaldi discount was 47% but Harvoni was only 16%. This tells me doctors/patients are willing and eager to pay for gild's CURE. Analysts see this as more discounts yet to be realized. Just another example of negative spin by the manipulators.
Im not suggesting V-Pak is significant. I'm saying in spite of all the hype re pricing that ABBV is charging more (net) than GILD.
What I don't understand is GILD's mention of the Unpaid Rebates. If the revs were after discount (as our numbers indicate) why would there be Unpaid Rebates to be backed out later.
I got similar results using revs and script data. BTW V-Pak revs not discounted nearly as much. ABBV reported 231mm revs and there were about 5890 scripts in 1Q15, that's $39k/script.
GILD reported $3016mm sales of Harvoni. 1Q15 scripts were ~113k (Ive been keeping weekly script #s). That's about $26k per script. Same numbers for Sovaldi 421/28/14.9, and for V-Pak 5890/231/39.
And currently trading lower than where it opened. After such a big beat. I;ve gotten used to this kind of treatment over the last 6 months. Can only hope that someday, without any warning, it will pop.