Analysts Comment on Merck's Hep C Regiment Advances

Several analysts commented on Merck's (NYSE: MRK)'s advances on Hepatitis C cure regiment.

ISI analyst Mark Schoenebaum commented that Merck's oral regimen for hepatitis C genotype 1 may be the first "truly clinical competitive" regimen against Gilead. Schoenebaum noted that this one pill per day regimen has +90 percent cure rates.

ISI further expects Merck to complete the C-Worthy study in more difficult-to-treat patients this week. SVR4 data is likely to be seen in March and Phase 3 studies may begin as early as late summer.

Deutsche Bank's Robyn Karnauskas noted that this regimen is more competitive with AbbVie than GILD. Karnauskas added that Merck may focus on genotype 1b, Japan, or emerging markets sectors. Deutshe commented that it unclear if this combination will work across genotypes, as seen by GILD's strategy.

Leerink analyst Howard Liang reported that Merck is a “lead contender among the second wave” of interferon-free regiments following GILD and ABBV/ENTA. Liang noted that Merck may move to Phase 3 testing quickly due to the FDA breakthrough therapy designation.

Wells Fargo's Brian Abrahams takes a more conservative stance, reporting that it's "too early to assess if Merck will be a true competitive threat." Although the initial results are strong, other patient group cure rates are pending.

Abrahams commented that Merck is a greater threat to ABBV versus GILD and is "likely to be entrenched by the time MRK's regimen potentially reaches the market."