Merck, Roche to work together on treatment of hepatitis C
Roche Holding AG (ROG) and Merck & Co. will work together to market treatments for hepatitis C in the U.S., promoting new boceprevir Merck with an older drug for Roche in a market estimated to reach 15 billion U.S. dollars annually in 2019.
The two researchers drug makers' will to work together to develop cocktails of drugs to combat hepatitis C, a virus that can remain in the body for decades, destroying the liver. Financial details of the deal were not disclosed in a statement.
The agreement gives Basel-based Roche access in Switzerland the first new treatment for hepatitis C in nearly a decade. U.S. regulators approved Whitehouse Station, New Jersey-based boceprevir Merck May 13. The drug is likely to compete with telaprevir, a Vertex Pharmaceuticals Inc. and Johnson & Medicine Johnson, who is awaiting the approval from Food and Drug Administration.
"In essence, the agreement Merck, Roche telaprevir actually try to close off the market to some extent," wrote Jack Scannell, a London-based analyst for Sanford C. Bernstein Ltd. in a note to investors today. Scannell rates Roche shares "market perform."
boceprevir and telaprevir are called protease inhibitors that work by blocking an enzyme used by the hepatitis C virus to copy itself. Both are used in conjunction with the current standard of care, a combination of ribavirin and interferon antiviral generic pill, an injection PegIntron sold by Merck and Roche's Pegasys.
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Under today's agreement, Roche boceprevir in marketing include the use of Pegasys, the companies said. Pegasys has about three-quarters of the interferon in hepatitis C, Scannell said.
"The triple combination therapy for hepatitis C is a major change in the way of treating this disease," said Pascal Soriot, director of operations Roche's pharmaceutical industry, today's statement. The companies said their goal is to expand their cooperation beyond the U.S. market.
Revenue from boceprevir may exceed 725 million U.S. dollars by 2013, the drug is sold under the name of Victrelis.
The FDA is scheduled to decide May 23 on the approval of telaprevir.
Jefferies International Ltd. estimated the market for hepatitis C drugs can be a total of $ 15 billion a year in 2019. -----------------------
Merck, Roche to Work Together on Hepatitis C Treatments
Roche Holding AG (ROG) and Merck & Co. will work together to market treatments for hepatitis C in the U.S., promoting Merck’s new boceprevir with an older drug from Roche in a market estimated to reach $15 billion annually by 2019.
The two drugmakers’ researchers will work together to develop drug cocktails to fight hepatitis C, a virus that may linger in the body for decades, destroying the liver. Financial details of the agreement weren’t disclosed in a statement today.
The deal gives Basel, Switzerland-based Roche access to the first new hepatitis C treatment in almost a decade. U.S. regulators approved Whitehouse Station, New Jersey-based Merck’s boceprevir on May 13. The drug is likely to compete with telaprevir, a Vertex Pharmaceuticals Inc. and Johnson & Johnson medicine that’s awaiting Food and Drug Administration approval.
“In essence, the Merck-Roche agreement effectively tries to shut telaprevir out of the market to some degree,” Jack Scannell, a London-based analyst for Sanford C. Bernstein Ltd., wrote in a note to investors today. Scannell rates Roche’s shares “market perform.”
Boceprevir and telaprevir are so-called protease inhibitors that work by blocking an enzyme used by the hepatitis C virus to copy itself. Both are used together with the current standard of care, a combination of the generic antiviral pill ribavirin and interferon, an injection sold by Merck as PegIntron and by Roche as Pegasys.
Market Share
Under today’s agreement, Roche will include boceprevir in its marketing on the use of Pegasys, the companies said. Pegasys has about three-quarters of the market for interferon in hepatitis C, Scannell said.
“Triple combination therapy for hepatitis C marks a major change in the way this disease is treated,” Pascal Soriot, Roche’s chief operating officer for pharmaceuticals, said in today’s statement. The companies said they aim to extend their cooperation beyond the U.S. market.
Revenue from boceprevir may surpass $725 million by 2013, The drug will be sold under the name Victrelis.
The FDA is scheduled to decide by May 23 on whether to approve telaprevir.
Jefferies International Ltd. estimates the market for hepatitis C drugs may total $ 15 billion a year by 2019.
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