Tomahawk, WI 12/10/2013 (BasicsMedia) – Gilead Sciences, Inc. (NASDAQ:GILD) got approval for a drug, Sovaldi, for hepatitis C. This approval was very much expected. As this drug works faster than most of the drugs on the market with very few side effects, it may produce more than $6 billion in annual sales. The first all-oral combination for some of the patients suffering from hepatitis C is the treatment costing $84,000 dollars. This treatment avoids symptoms, like flu, that are caused by some injections, which are also a part of the current treatment.

About Sovaldi

In November 2011, Sovaldi was acquired by Gilead for a whopping $11 billion. Along with Sovaldi, Pharmasset, its original developer, was also acquired. The drug is an oral nucleotide polymerase inhibitor that suppresses the replication of the hepatitis C virus by interfering with its life cycle. The Food and Drug Administration (FDA) designated Solavdi as a breakthrough therapy and granted priority review to it because, on a shortened 12-week course of therapy, it offers high cure rates.

Competition

AbbVie Inc (NYSE:ABBV), Johnson & Johnson (NYSE:JNJ), Bristol-Myers Squibb Co (NYSE:BMY), and Gilead Sciences, Inc.  (NASDAQ:GILD) are in a competition to market a new pill that maintains high cure rates while reducing or eliminating the need for interferon shots at the same time. The FDA said that it is very much clear that the largest drug maker of the world, Sofosbuvir, will call on Sovaldi to use it with some other drugs depending on the illness suffered by the patients.

Financial Impact

The sales of the hepatitis C drug may reach more than $100 billion over the next decade, according to Bloomberg industries. According to the average of 8 projections of analysts, Sovaldi is estimated to be the largest product of the company that will produce revenue of $1.9 billion next year and about $6.6 billion in the year 2016.

Price

The California based firm said that the wholesale price for Sovaldi will be $28,000 dollars for a 28 day-supply of tablets. The drug is to be taken once a day.

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