Gilead Sciences, Inc. (GILD): The Heart Of The Matter

Ranexa initially hit the market as a non-traditional anti-anginal.  It is scientifically exciting because it reduces oxygen demand and coronary artery stress without reducing heart rate or blood pressure.  Clinically, though, it is not a first-line treatment.  Instead, physicians typically prescribe vasodilators like nitrates or calcium-channel blockers, or beta-blockers to reduce strain on the heart.  Ranexa is currently only prescribed to patients that don’t respond to those treatments.

The drug brought in $372 million in 2012 – tiny considering that the agina market was valued at more than $9 billion in 2010.  The big Ranexa news this year was from the Phase 4 TERISA trial, which examined the safety and efficacy of angina reduction in patients with type 2 diabetes.  While statistically significant, the magnitude of the result was underwhelming.  Not to mention, Ranexa (or placebo) was applied in addition to standard anti-anginal therapies rather than as a stand-alone treatment.  Gilead Sciences, Inc. (NASDAQ:GILD) seems to still be searching for a home for Ranexa, but I worry that it carries too many safety risks for any broad cardiovascular indications.

The Heart of the Matter

In all, the cardiovascular division accounted for nearly 10% of Gilead’s revenues in Q1 2013, but it’s tough to say what it does for the bottom line.  Letairis and Ranexa were obtained in the $1.4 billion dollar acquisition of CV Therapeutics, but the acquisition of Myogen in 2006 for $2.6 billion didn’t yield any marketable products.  That’s a big chunk of cash to make back.  For the cardiovascular division to contribute to Gilead Sciences, Inc. (NASDAQ:GILD)’s future Letairis must survive the onslaught of next generation drugs, and Ranexa must be put to good use in the appropriate clinical setting.

The article Gilead Shows Some Heart originally appeared on Fool.com.

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