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J&J's Been Busy

By Brian Orelli, PhD – Updated Apr 6, 2017 at 8:44PM

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Last week HIV with Gilead, this week hep C with Pharmasset.

When it comes to virus inhibition, Johnson & Johnson (NYSE: JNJ) has been getting around. Last week, the health-care giant signed a partnership with Gilead Sciences (Nasdaq: GILD) to combine their HIV drugs. And yesterday, Johnson & Johnson announced it was hooking up with a different partner, Pharmasset (Nasdaq: VRUS), to create a hepatitis C drug combo.

The duo plan to run a phase 2 trial combining the companies' experimental drug candidates: PSI-7977 from Pharmasset and TMC435 from Johnson & Johnson. They'll start in patients that have already failed a round of treatment, but if the drugs show success, the companies will surely move into treatment-naive patients.

The press release didn't mention any financial details. Maybe they're waiting to see if they're compatible before putting a name on their relationship.

Like the HIV market, the future of hepatitis C treatment is a cocktail that's hopefully capable of curing everyone. Incivek and Victrelis from Vertex Pharmaceuticals (Nasdaq: VRTX) and Merck (NYSE: MRK), respectively, are combined with older medications to help boost the cure rate from around half of the treated patients to as much as 79%.

But that still leaves room for improvement. And the older medications -- Merck's PegIntron and Roche's Pegasys -- have to be injected and have unpleasant side effects. Going to an all-oral regimen is the ultimate goal.

Hepatitis C drugmakers with limited compounds are scrambling to partner up to avoid being left behind. Pharmasset has a similar deal combining PSI-7977 with a drug from Bristol-Myers Squibb (NYSE: BMY). Merck and Roche have also hooked up to test their drug candidates.

Gilead has six hepatitis C compounds in clinical trials that it can mix or match to find the right combo on its own, which might explain why Johnson & Johnson didn't hit up its HIV partner for another go around in hepatitis C.

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Fool contributor Brian Orelli holds no position in any company mentioned. Click here to see his holdings and a short bio. The Motley Fool owns shares of Johnson & Johnson. Motley Fool newsletter services have recommended buying shares of Johnson & Johnson, Gilead Sciences, and Vertex. Motley Fool newsletter services have recommended creating a diagonal call position in Johnson & Johnson. 

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Stocks Mentioned

Johnson & Johnson Stock Quote
Johnson & Johnson
JNJ
$166.72 (0.33%) $0.54
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
Vertex Pharmaceuticals Incorporated Stock Quote
Vertex Pharmaceuticals Incorporated
VRTX
$283.45 (-1.01%) $-2.89

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

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