Gilead Sciences (NASDAQ:GILD) must watch out for rival companies


The ball is in Gilead Sciences (NASDAQ:GILD) court with its hepatitis C drug, Sovaldi, calling the shots in the market. Investors are enthusiastic about the biotech company’s impressive performance so far regarding the drug. Drug therapies like Xtandi from the company Medivation (NASDAQ:MDVN) have a chance for making an impact by increasing the chances of survival in men with prostate cancer.

Drugs like these are a blessing in disguise considering that one out of 7 seven men in the United States will have this diagnosis in their life. The FDA gave the approval for Xtandi to be used in post-chemotherapy for prostate cancer in 2012. This was after the trials indicated that patients taking Xtandi were better off than those taking a placebo, given that the drug gave the patients 18.4 months while the placebo gave 13.6.

Johnson & Johnson (NYSE:JNJ) is gritting its teeth as Xtandi is going up and above against its drug Zytiga thereby taking the lead in therapy for post-chemotherapy patients. It was because of its drug that Medivation (NASDAQ:MDVN) saw a strong quarter with its revenue shooting up from $70 million to $148 million since the last year along with an increased EPS from a loss of $0.07 to a profit of $0.63.

The company is in full swing, however this is just the start for them. The FDA approved Xtandi in September to be used for pre-chemotherapy patients as well. After this news, analysts think that the EPS of Medivation (NASDAQ:MDVN) will rise 42% from its stated $2.42 in the current year making it to $3.34 in the next. This will cause the company’s growth in earnings to increase. Another company doing well and above Gilead Sciences (NASDAQ:GILD ) is Celgene (NASDAQ:CELG) with its treatment Revlimid for multiple myeloma.

This treatment allows Celgene (NASDAQ:CELG) to push more drugs through its clinical trials like Abraxane. This drug is a treatment for cancer which won the company an expansion for it to be used in pancreatic cancer as well. Celgene (NASDAQ:CELG) also launched another myeloma drug, Pomalyst, whose sales increased 102% on a yearly basis making it to $181 million in Q3.

Otezla is another one of the company’s drugs which also gained the company a label expansion in order for it to cater to psoriasis patients as well. Even though the sales of this drug totaled to $18 million in Q3, the company thinks its prospects are higher with them being able to produce over $1 billion each year. Celgene (NASDAQ:CELG) is expected to report an EPS between the range of $3.65-$3.70 in the current year because of its growth in Revlimid as well as its increase in sales for its drugs Otezla, Pomalyst and Abraxane.

Biogen Idec (NASDAQ:BIIB) is another company with spectacular results however its shares have dropped after a patient taking its drug, Tecfiders, passed away with PML. However, this isn’t the only company that hit a rock with this rare brain disease. Bigoen (NASDAQ:BIIB) also launched a drug for the disease called Tysabri whose sales came to a sudden stop.