Gilead Science's Falls Most in Almost Three Months

The video discusses the financial and market implications of high drug costs, focusing on Gilead's hepatitis C drug Harvoni, which missed sales estimates due to increased rebates and market misestimation. The impact on the biotech sector is analyzed, highlighting Gilead's influence as a bellwether stock. Additionally, Celgene's REVLIMID trial results are reviewed, noting the failure to meet a key survival endpoint, which affected its stock performance.

What was a major reason for Harvoni's earnings miss?

• Increased competition

• Higher than expected rebates

• New market regulations

• Decreased production costs

What was the effect of increased rebating on Harvoni's performance?

• It led to regulatory scrutiny

• It reduced net earnings

• It increased production costs

• It improved market share

How did Gilead's earnings report affect the biotech sector?

• It caused a negative sentiment

• It had no significant impact

• It boosted investor confidence

• It led to increased stock prices

What was the main reason for Celgene's stock drop?

• Unexpected regulatory approval

• Increased production costs

• Failure to meet the secondary endpoint

• Failure to meet the primary endpoint

What was the anticipated outcome of Celgene's trial?

• Increasing market share

• Achieving regulatory approval

• Showing a survival benefit

• Meeting the primary endpoint