AbbVie Inc (NYSE:ABBV), Celgene Corporation (NASDAQ:CELG), and Sanofi SA (ADR) (NYSE:SNY) got the approval of the medical advisory committee of the European Union last Friday, allowing the drug makers to sell key brands, at least two of which are estimated to be market blockbusters.
AbbVie Inc (NYSE:ABBV) was given a positive review on its Viekirax and Exviera, which are intended for the treatment of genotype 1 and genotype 4 chronic hepatitis viral infection (HCV), respectively. The endorsement comes from The European Committee for Medicinal Products for Human Use (CHMP), a body under the European Medicines Agency (EMA). It is expected that the review will be decided upon by the European Commission by the first quarter next year, after which AbbVie Inc (NYSE:ABBV) can start marketing the two drugs. It is estimated that approximately 9 million Europeans suffer from HCV, with at least 10% to 20% of them to gradually develop cirrhosis and liver failure.
Analysts estimates that AbbVie Inc (NYSE:ABBV) can make a sale amounting to several billion dollars annually, although the European market is already dominated by competitor Gilead Sciences, Inc. (NASDAQ:GILD)
Celgene Corporation (NASDAQ:CELG) also got the nod of the CHMP for Otezla, the first drug for treating immunological disease that it has ever made, particularly intended for psoriasis and psoriatic arthritis. The positive review for Celgene Corporation (NASDAQ:CELG)’s Otezla was based on a two year research study that showed a 20% improvement on patient’s symptoms, with data collected through standardised system. The U.S. had earlier approved the use of the drug for psoriasis this September and for psoriatic arthritis just March 2014.
Celgene Corporation (NASDAQ:CELG) has a track record of $1.5 billion in peak yearly sales despite negative outlook from observers
A positive opinion was also garnered by Sanofi SA (ADR) (NYSE:SNY) from the CHMP for its Cerdelga drug, which is intended for the treatment type 1 Gaucher disease. Currently, the available treatment for the disease is Cerezyme injection, according to Genzyme president and CEO David Meeker. Genzyme is a subsidiary of Sanofi SA (ADR) (NYSE:SNY) and the maker of the drug Cerdelga. Meeker cites Cerdelga as a convenient oral medication alternative for patients suffering from type 1 Gaucher disease.
Analyst Seamus Fernandez of Leerink estimates that Sanofi SA (ADR) (NYSE:SNY)’s Cerdelga will make as much as $770 million after 12 years.
This article has been written by Nonito Guntan.