Merck & Co. Inc. (MRK) and Roche Holdings Ltd. () have recently inked a worldwide non-exclusive agreement to market the triple combination therapy, which includes Merck’s Victrelis (boceprevir), peginterferon alfa and ribavirin. The combination drug is targeted at treating hepatitis C virus (HCV). According to the agreement, Roche and Merck will work together worldwide and educate physicians and patients about HCV.
While Victrelis was approved by the US Food and Drug Administration (FDA) in May 2011, the European Commission (EC) approved Victrelis for the treatment of chronic hepatitis C (CHC) genotype 1 infection, in combination with peginterferon alfa and ribavirin in treatment-indifferent adults with compensated liver disease, earlier this week.
We note that Victrelis is not recommended for use as a monotherapy and should only be used in combination with peginterferon alfa and ribavirin.
Earlier, Merck and Roche had agreed to promote Victrelis in the US as part of a triple combination therapy regimen.
Competition in the HCV market is expected to be strong with Vertex Pharmaceuticals’ (VRTX) HCV drug Incivek (telaprevir) also approved in the US. Incivek is currently under review in the European Union, where the drug is expected to get approval by the end of the year.
Our View
We currently have a Neutral recommendation on Merck. The stock carries a Zacks #3 Rank (Hold rating) in the short-run. We expect this agreement to be beneficial for both the companies as it aims to bring about an improvement in the treatment, diagnosis and awareness of chronic hepatitis C virus infection in developed and emerging markets. We currently have a Zacks #2 Rank (Buy rating) on Roche.
MERCK & CO INC (MRK): Free Stock Analysis Report
VERTEX PHARM (VRTX): Free Stock Analysis Report
Get all Zacks Research Reports and be alerted to fast-breaking buy and sell opportunities every trading day.
Be the first to comment