HIV Drug Partnership Gets a Boost

Don't let it get away!

Keep track of the stocks that matter to you.

Help yourself with the Fool's FREE and easy new watchlist service today.

Talk about a love fest. Gilead Sciences (Nasdaq: GILD  ) and Johnson & Johnson (NYSE: JNJ  ) announced their second HIV-drug pact today and have arrangements for a third.

The duo plans to develop a pill that combines Gilead's development-stage cobicistat and Johnson & Johnson's Prezista. Cobicistat is a boosting agent that helps certain types of antiviral medications work better. Prezista is already approved for use in combination with Abbott Labs' (NYSE: ABT  ) boosting agent Norvir. Johnson & Johnson will be responsible for developing and selling the drug. This is a pretty low-risk partnership, with Prezista already on the market and cobicistat part of Gilead's quad pill that seems to work pretty well.

The deal builds on an earlier partnership to combine Johnson & Johnson's recently approved Edurant with Gilead's Truvada. That combo is already under regulatory review, and the FDA should make a decision on or around Aug. 10. The drug will go up against Atripla, a nearly $3 billion drug that combines Truvada with Bristol-Myers Squibb's (NYSE: BMY  ) Sustiva.

As if the two deals weren't enough, Gilead and Johnson & Johnson said they're working out details on a third deal that will combine Prezista with Gilead's Emtriva, cobicistat, and another development-stage drug, GS 7340. Gilead will be in charge of developing this combination, and the cobicistat-Prezista deal is actually dependant on working out the details of this third deal.

With Pfizer (NYSE: PFE  ) and GlaxoSmithKline (NYSE: GSK  ) married and Gilead and Johnson & Johnson now shacking up, one has to wonder whether Abbott, Bristol-Myers, and Merck (NYSE: MRK  ) might start eyeing each other from across the room. In a therapeutic area where cocktails rule, the last one to the altar is likely to end up as an old maid.

Interested in up and coming technology? Get the Fool's free report, "The Only Stock You Need to Profit From the NEW Technology Revolution."

Fool contributor Brian Orelli holds no position in any company mentioned. Check out his holdings and a short bio. The Motley Fool owns shares of Abbott Laboratories, Johnson & Johnson, and GlaxoSmithKline. Motley Fool newsletter services have recommended buying shares of Abbott Laboratories, Gilead Sciences, GlaxoSmithKline, Johnson & Johnson, and Pfizer, as well as creating a diagonal call position in Johnson & Johnson. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

  • Report this Comment On June 28, 2011, at 6:05 PM, SAMara24 wrote:


    I love the market and everything in my life I look at from a business perspective...

    But just imagine if these companies, just for this single project, stopped competing and all joined together, evenly shared profits for it, and were able to create a drug that is at least more effective? They'd all be responsible for saving millions of lives while slowing a tragic epidemic and make some money off of it? Each company still has their own other products. This would just be a single alliance and can continue competing with each other as soon as the project is done. This is disgusting to me. The sole reason they are not doing this and delaying any preventative/resolution to something that kills millions of people is because each company wants to be the one to make more of the money...

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1513081, ~/Articles/ArticleHandler.aspx, 10/22/2016 8:08:23 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 10 hours ago Sponsored by:
DOW 18,145.71 -16.64 -0.09%
S&P 500 2,141.16 -0.18 -0.01%
NASD 5,257.40 15.57 0.30%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/21/2016 4:00 PM
ABT $40.50 Down -0.24 -0.59%
Abbott Laboratorie… CAPS Rating: *****
BMY $50.02 Down -0.34 -0.68%
Bristol-Myers Squi… CAPS Rating: ****
GILD $74.29 Down -0.02 -0.03%
Gilead Sciences CAPS Rating: *****
GSK $41.13 Down -0.30 -0.72%
GlaxoSmithKline CAPS Rating: ***
JNJ $113.44 Down -1.43 -1.24%
Johnson and Johnso… CAPS Rating: ****
MRK $61.20 Down -0.72 -1.16%
Merck and Co. CAPS Rating: ****
PFE $32.18 Down -0.36 -1.11%
Pfizer CAPS Rating: ****