The Royal Divorce. Gilead Rallied Not Plummeted

The Royal Divorce

On Sunday, the next day after the announcement of the British referendum’s results, a turbulence in the stock markets was in the making by professionals who cited all kind of pessimistic likelihoods and negative projections that England divorce will cause havoc, devastating the stock markets for months, and maybe for years to come.

On Monday, the markets were, indeed, devastated and the analysts, mostly negative, accentuated their pessimistic views.

On Tuesday, the market rallied. The hurricane demonstrated to be just a tempest in a teapot, or as the British call it, a storm in a teacup.

Historians specialized in Europe who do not play the stock market viewed the Royal divorce differently. They believed Great Britain might do much better for the European Union than being dissolved in it and handicapped by it. People know how the countries that initiated the union had to struggle and pay a monstrous price, trying to keep their union states alive. The well to do, or the leaders of the EU had to overcome the colossal differences between the EU member countries’ ways of life, backgrounds, economies, capabilities, cultures, histories, tendencies and the demands required for the wellbeing of the different people in the different states. One must not forget to include among the problems of the peculiar feelings of the different peoples towards each other.

Following the news about the British decision, the stock market masters began to cite the reasons why the separation should devastate the stock markets. One of their most shared opinion is that the market hates “uncertainty”. The problem is that when forced to elaborate, they stated with “great certainty” what they believe will be the consequences of England’s divorce.

The only source of uncertainty in the market, according to our long experience, is those who have all what’s required to fulfill their own prophesies at the expense of millions of investors.

Some biotech analysts wrote articles with titles pinpointing biotech companies that will surely be

devastated. Guess what? We have read most of these articles and found no explanation, or even mention of what the titles claimed would explain.

One of the firms that were most selected to be devastated by England divorce is Gilead (GILD). The stock, like all other stocks, was subjected to some selloff on Monday, closing at$78.25 down $2.22.  On Tuesday, the stock rallied from $78.25 to $82.31 Up $4.06.


Why the rally?

Because the news coming from this firm s great for the HCV patients. The U.S. Food and Drug Administration (FDA) has approved Gilead’s (GILD) drug Epclusa® (sofosbuvir 400 mg/velpatasvir 100 mg), the first all-oral, pan-genotypic, single tablet regimen for the treatment of adults with genotype 1-6 chronic hepatitis C virus (HCV) infection.

Epclusa is also the first single tablet regimen approved for the treatment of patients with HCV genotype 2 and 3, without the need for ribavirin. Epclusa for 12 weeks was approved in patients without cirrhosis or with compensated cirrhosis (Child-Pugh A), and in combination with ribavirin (RBV) for patients with decompensated cirrhosis (Child-Pugh B or C).

Simplifying the treatment of HCV is the aim and treating what was difficult to treat is another reason why Epclusa’s approval makes a difference. Epclusa demonstrated consistently high cure rates across all genotypes, including among patients with genotype 2 and 3, who traditionally have required ribavirin or other multi-pill regimens. That’s why the FDA granted this drug a Priority Review and Breakthrough Therapy designation, which are given to investigational medicines that may offer major advances over existing treatments.

Epclusa’s approval is supported by data from four international Phase 3 studies, ASTRAL-1, ASTRAL-2, ASTRAL-3 and ASTRAL-4.

In the ASTRAL-1, ASTRAL-2 and ASTRAL-3 studies, 1,035 patients with genotype 1-6 chronic HCV infection, without cirrhosis or with compensated cirrhosis received 12 weeks of Epclusa.

The ASTRAL-4 study randomized 267 patients with genotype 1-6 HCV infection, with decompensated cirrhosis (Child-Pugh B), to receive 12 weeks of Epclusa with or without RBV or 24 weeks of Epclusa. The primary endpoint for all studies was SVR12.


In the ASTRAL-1, ASTRAL-2 and ASTRAL-3 studies: Of the 1,035 patients treated with Epclusa for 12 weeks, 1,015 (98 percent) achieved SVR12.

In ASTRAL-4 study: Patients with decompensated cirrhosis receiving Epclusa with RBV for 12 weeks achieved a high SVR12 rate (94 percent) compared to those who received Epclusa for 12 weeks or 24 weeks (83 percent and 86 percent, respectively).

For more details and adverse effects click  and click on press release

Prohost Observations

The approval of Epclusa represents a significant advance in the treatment of HCV genotypes 2 and 3, who previously required an additional drug and additional cost. Epclusa is the only pan-genotypic cure for hepatitis C, which eliminates the need for genotype testing without being afraid of treating patients that are untreatable with current marketed regimens.

Innovation and improvement is Gilead’s specialty. He did it several times before in in improving its HIV/AIDS treatments and now in HCV treatment.

This is great news.

Prohost Forward-Looking: Material presented here is for informational purposes only. Nothing in this article should be taken as a solicitation to purchase or sell securities. Before buying or selling any stock you should do your own research and reach your own conclusion. Further, these are our ‘opinions’ and we may be wrong. We may have positions in securities mentioned in this article. You should take this into consideration before acting on any advice given in this article. If this makes you uncomfortable, then do not listen to our thoughts and opinions. The contents of this article do not take into consideration your investment objectives so consult with your own financial adviser before making an investment decision. Investing includes certain risks including loss of principal.

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