Efforts by GlaxoSmithKline Plc (NYSE:GSK) in carrying out a large study on its new HIV drug are yielding positive results. The Phase III trial of a dual-drug regimen was in support of the company’s confident bet that it can modify treatment orthodoxy away from three-drug combinations. The study, which is being carried out at more than 40 sites in North and South America, Asia and Africa is incorporating 4,500 homosexual men. It will also involve transgender women who have sex with men.
The possible success of the trial would come at a time when GSK is also celebrating another triumph of its two-drug HIV tablet therapy, which was able to control HIV in two late-stage trials. Thus given the increasing competition in the market, the company’s current trial is likely to pose a challenge to other incumbent companies the likes of Gilead Sciences, Inc. (NASDAQ:GILD) and its three-med combos.
So why is this new advance a possible game-changer?
Naturally, HIV patients must continuously take their medications over their lifetime to avert a counterattack of the virus. Thus taking away one drug out of the three-med combos is one way of reducing any possible side-effect burden that patients have to bear. It is also a meant of cost saving. This is likely to hit hard on Gilead given that it has a heavy reliance on the income from its HIV drug.
Michael Leuchten, a UBS analyst says, “The key debate remains whether Gilead will gain the upper hand again or whether a disruptive two-drug regimen becomes standard of care, favoring GSK.”
The positive results could also a fallback for Glaxo in being able to defend its HIV business against any other upcoming rivals. Meanwhile, the company is testing dolutegravir in combination with generic HIV drug 3TC.
The Big Biotech has a line of new-and-improved trios on the market
The drugmaker may not have much to worry because a majority of its trios are less toxic than their predecessors. However, it is worth keeping an eye on the market. After all, everyone is working on a new establishment in an effort to outdo the other. Besides, potentially competitive regimen seems to be offering a feasible alternative. Meanwhile, Glaxo’s stock closed at $38.30 a decline of $0.01 or 0.03%.
