Inside Gilead Sciences’ Active Involvement in Drugs for NASH
The Real Story behind Gilead Sciences' Valuations in 2016
Nash and other liver diseases
Gilead Sciences (GILD) has three investigational drugs—Simtuzumab, GS-4997, and GS-9674—that target NASH (nonalcoholic steatohepatitis) in its early-stage pipeline. Simtuzumab is also being explored to treat patients suffering from PSC (primary sclerosing cholangitis).
On April 4, 2016, Gilead Sciences announced that it will acquire Nimbus Apollo, which will add another promising molecule targeting NASH, hepatocellular carcinoma, and other liver diseases, to the company’s portfolio. With four promising molecules in its pipeline, Gilead Sciences is expected to pose strong competition to other players in the liver space like AbbVie (ABBV), Merck (MRK), and Bristol-Myers Squibb (BMY).
Market opportunity
According to WebMd, NASH or “Nonalcoholic steatohepatitis…is liver inflammation and damage caused by a buildup of fat in the liver. It is part of a group of conditions called nonalcoholic fatty liver disease.”
About 15 million people in the US are affected by NASH. The disease is also expected to result in a high number of liver transplants by 2020. High disease prevalence coupled with costly treatment options will likely offer substantial growth opportunity for Gilead Sciences’ oral NASH drugs.
PSC
On April 16, 2016, Gilead Sciences also presented data that supported the development of Simtuzumab, GS-4997, and GS-9674 for PSC as well as for NASH. According to GILD’s press release, “PSC is a disease characterized by inflammation and stricturing of the bile ducts. PSC can eventually lead to cirrhosis and other complications, including bile duct cancer.”
Notably, Nimbus Apollo also presented favorable Phase 1 trial data for its leading liver disease molecule, NDI-010976.
After approval from regulatory bodies, if Gilead Sciences’ NASH and PSC drugs become commercial successes, they could boost the company’s share price as well as that of the iShares Russell 1000 ETF (IWB). Gilead Sciences makes up about 0.6% of IWB’s total portfolio holdings.
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