NASH a Big Opportunity For Gilead Sciences, Inc. (GILD)

After being a dominant player in the hepatitis C market with its drug Sovaldi, Gilead Sciences, Inc. (NASDAQ:GILD) is now eyeing to monetize from the next global epidemic, NASH, or nonalcoholic steatohepatitis. NASH is a modern day progressive liver-disease, stemming from obesity with no medication available so far. The disease is a bonanza to pharmaceutical companies like Gilead Sciences, Inc. (NASDAQ:GILD), as it is estimated that treatment costs for NASH could soar by as much as $40 billion over the next decade. A CNBC report throws light on how the disease could translate into big money to the pharmaceuticals along with the inputs from Deutsche Bank’s analyst, Alethia Young.

Gilead Sciences, Inc. (NASDAQ:GILD)

As drugmakers see the NASH affected cases to grow significantly in the upcoming years, Young cited: “At least, probably six million or six and a half million people with advanced NASH, meaning they have scarring or hardening of their liver. Conservatively, here in the U.S., then in Europe and the big five nations, it’s about the same. So, it’s about 12-13 million people.”

Those numbers are only an estimate of the people at advanced levels, therefore, if cases of preliminary or early stages are taken in account, then the patients are 30 million alone in the U.S. Thus, the market could be between $35 to $40 billion by 2020-2025.

Ahead of the potential market, three of the companies, Gilead Sciences, Inc. (NASDAQ:GILD), Intercept Pharmaceuticals Inc (NASDAQ:ICPT) and France-based Genfit are in the race to develop the first Nash drug. The results of the ongoing studies in this direction will begin to unfold by the end of the year. But Young estimates that there is a need to wait for another couple of years in order to get satisfactory data about the safety and efficacy of the drugs as she sees the drugs hit the shelves only towards the year 2020. As of now, Intercept Pharmaceuticals Inc (NASDAQ:ICPT) is the only company to provide positive data from its drug OCA (Obeticholic acid), after which its stocks have tripled in value. Analysts say that if companies add further positive results than their shares could double, but any negative data could mean a straight cut to half.

Disclosure: none

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

Picture Perfect: The 6 Smartphones with the Best Cameras

The 10 Best Countries To Work In the World

A Profitable Day At The Track: 5 Tips For Betting On Horses

Tearing You Apart: 6 Bad Habits That Ruin Relationships

Learning on the Job: The 6 Biggest Mistakes Parents Make

Shopaholics Rejoice: The 12 Biggest Malls in the World

Fright Night: 10 Horror Movies Based on True Stories

Mach Mania: The 10 Fastest Jets in the World

Military Heavyweights: The 10 Countries with the Most Tanks

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!