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

Comments
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

The Highest Grossing Musicals on Broadway

The Most Successful Reality TV Stars

Cheapest Cities to Visit in the US

Most Expensive Summer Camps

Most Expensive Animals in the World

Most Expensive Specialty Crops in the World

Movies That Took Ages to Make

The Longest Hollywood Films Ever Made

Most Expensive Concert Stages

The Richest Bands of all Time

10 Most Corrupt Countries 2013 List

10 Countries with the Highest Quality of Life Index

Most Expensive Mattresses in the World

5 Smallest Countries by Land Area

The Ultimate Heartbreak Songs

Richest Teenagers in the World

10 Most Haunted Places in America

10 Best Places to Retire in Florida East Coast

Top 10 Places to See Before You Die

Top 8 Countries in the World Where Justice Prevails

10 Richest States in America

15 Wealthiest Countries in the World

Richest Singers in the World

Most Expensive Tasting Menu in New York City

Most Expensive Baby Items in the World

Most Expensive Hotel Suites in Vegas

Most Expensive Brunch in New York City

Most Expensive Beef Cuts in the World

25 Best Colleges to Get a Job

Top 10 US Supermarkets

The 25 Most Dangerous Cities in the World to Visit

Most Expensive Xbox Games

Top 11 Cities Where Billionaires Live

Top 10 Most Charitable Companies in America

Most Expensive Seafood in the World

The 10 Wildest Conspiracy Theories

The 10 Best Job Markets in the US

Top 10 Accounting Scandals of All Time

The 25 Biggest Cities in the World

Top 10 Best Paying Virtual Jobs

Most Expensive Leather Shoes in the World

Top 6 Things to Buy in March

The 10 Most Stressful Jobs in America – 2014 List

Top 10 Jobs for Introverted People

Top 10 Honeymoon Destinations in the World

Top 10 Highest Paying Jobs in the World

Most Expensive Day-Care in New York City

The 10 Cheapest Places to Retire Abroad

Top 10 Most Expensive Luxury Cars in the World – 2014

Killer Small Business Ideas

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!