Please ensure Javascript is enabled for purposes of website accessibility

Not a Blockbuster -- Yet

By Brian Orelli, PhD – Updated Apr 5, 2017 at 5:24PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Merck gains marketing approval for its newest HIV drug.

As expected after a unanimous advisory panel vote last month, the FDA approved Merck's (NYSE:MRK) HIV drug ISENTRESS on Friday. While that's good news for HIV patients, Merck's investors will have to wait a while before they can truly reap the financial benefits of this potential blockbuster drug.

The drug was approved under an accelerated FDA approval process that allows drugs that treat diseases with unmet needs to be approved with less safety and efficacy data than is normally required. But that speed comes with a price -- ISENTRESS is only approved for use in patients who have already failed other safety-proven treatments.

The drug is the first in a class of integrase inhibitors, which block the viral DNA from integrating with the patient's DNA. Because it blocks a new mechanism of viral replication, the drug works well in patients who have developed resistance to current treatments, which block viral replication by attacking the protease or reverse transcriptase enzymes.

The drug should also work in patients who haven't gained resistance to other drugs, but Merck will need to complete ongoing phase 3 clinical trials in patients who aren't resistant before it can gain marketing approval for that segment of the patient population.

Merck should have the integrase inhibitor market to itself for a while. Its closest competitor is Gilead Sciences (NASDAQ:GILD), which completed a phase 2 clinical trial earlier this year. Merck's big pharma brethren GlaxoSmithKline (NYSE:GSK) and Bristol-Myers Squibb (NYSE:BMY) also have integrase inhibitors, but they're further behind in the clinic.

Fool contributor Brian Orelli, Ph.D., doesn't own shares of any company mentioned in this article. Glaxo is a selection of the Income Investor newsletter. The Fool's disclosure policy thinks an apple a day probably couldn't hurt.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Merck & Co., Inc. Stock Quote
Merck & Co., Inc.
MRK
$86.78 (-0.83%) $0.73
Bristol Myers Squibb Company Stock Quote
Bristol Myers Squibb Company
BMY
$70.71 (-0.81%) $0.58
Gilead Sciences, Inc. Stock Quote
Gilead Sciences, Inc.
GILD
$62.86 (-1.43%) $0.91
GSK Stock Quote
GSK
GSK
$29.36 (-2.17%) $0.65

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
339%
 
S&P 500 Returns
109%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/24/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.