As I Said Last Night, Gilead Is Only “Marginally” Impacted By The Merck Delaware Patent Verdict…

The NYSE here demonstrates the wisdom of the crowd, this morning. [Or the efficient capital markets theorem, if you prefer.]

It makes sense that Merck is up a bit — as this was clearly a bit of good news — for Kenilworth. Even so, there is much yet ahead in the global patent battles related to these Hep C cures.

And that explains why Gilead — while opening a little lower (just over one per cent, compared to last night’s close) — has generally moved north from there, on strong volume, all morning.

We should not forget that Merck’s last win — on these same matters — was ultimately wiped out, entirely, in bench proceedings, after the jury’s verdict — last summer, in California’s Northern District.

Object Lesson: US patent law is quite a bit more complicated that just the jury’s role of finding facts. [And perhaps even more directly (though straight financial analysis is usually beyond the blog’s scope), Gilead has sold $25 billion worth of these cures — with no let up in sight. If it reduces its gross margin, overall, going forward, by the max of 10 per cent (Merck’s putative royalty). . . Gilead is still well-ahead. As I say, it will be fine.]

As ever, forward — into Sweet Will’s “undiscovered country” — with much more to come. Breathing easier now — under much warmer, if gray, skies. The snow arrives in earnest again, this evening. Smile. Onward — as ever. [Disclosure: I am not long or short any name I write about here.]



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