Gilead Sciences: Pricing Concerns Just Noise?

Maxim Group’s Jason Kolbert thinks the controversy over the cost of Gilead Sciences’ (GILD) Sovaldi is overblown. He explains:

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Gilead was pilloried again yesterday for developing a drug (Sovaldi) with the highest efficacy and fewest side effects, but at a high (but not the highest) price for a new HCV therapy. The cost-benefit ratio suggests it is not the most expensive therapy in the HCV space. While the politics of Washington are not surprising, the fact that a pharmacy distribution company [Express Scripts (ESRX)] would make what we consider to be political statements is damaging to the industry and patients they serve. They, better than us, understand the benefits of Sovaldi. We view these statements as noise and believe that Sovaldi and next-generation Ledipasvir/Sovaldi represent real pharmaco (economic) value in the HCV space.

Shares of Gilead have gained 1.4% to $71.00 at 1o:01 a.m. today, although it should be noted that its main competitors in the hepatitis C space are as well. Shares of Merck (MRK) have risen 1.5% to $55.89 and AbbVie (ABBV) is up 1.6% at $49.87. Express Scripts has ticked up 0.2% to $72.92.