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How Diabetes Drug Spending May Move Sanofi and Merck
 

How Diabetes Drug Spending May Move Sanofi and Merck

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Spending on diabetes treatment is expected to grow by double digit percentages annually through 2016. If so, Sanofi and Merck, the makers of two of the best selling diabetes therapies, may benefit.

Spending on diabetes treatment is expected to grow by double digit percentages annually through 2016. If so, Sanofi and Merck, the makers of two of the best selling diabetes therapies, may benefit.

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    How Diabetes Drug Spending May Move Sanofi and Merck How Diabetes Drug Spending May Move Sanofi and Merck Presentation Transcript

    • 2 Ways To Invest in 1 Big Drug Spending Trend
    • Introduction: Diabetes -- 2013 in Review • Diabetes drug spending grew 14% in 2013. – Price accounted for 11.6% of that growth. – Growing use accounted for 2.4% of that growth. • 38% of diabetics fail to take their medicine appropriately – Suggests a big unmet need for new treatments. Globally, more than 365 million people suffer from diabetes -- half of whom are unaware they have it. Approximately 70 million diabetics live in developed countries like the U.S. that provide well-established access to diabetes drugs.
    • Diabetes: Future Projections • Spending on diabetes therapies will grow double digits over the next three years. – Spending will climb 11.2% in 2014. – Spending will climb 12.2% in 2015. – Spending will climb 10.5% in 2016. Source: Express Scripts 2013 Drug Trend Report The global population of diabetics is estimated to eclipse 550 million by 2030.
    • 2 Dominating diabetes drugs • Lantus is a once-daily, long acting insulin. • Lantus sales totaled $7.5 billion in 2013. • Lantus sales have grown nearly 20% in each of the past two years. • Lantus sales represent 17% of Sanofi’s revenue. • Lantus share of the diabetes drug market is 6.8%. – Lantus loses patent protection in 2015. – U300 interim phase 3 data suggests U300 outperforms Lantus in controlling nighttime glucose levels. Source: Express Scripts 2013 Drug Trend Report and Here's How Sanofi Hopes to Survive Post-Lantus 1. Sanofi (NYSE: SNY): Lantus • Lantus is the best selling branded diabetes drug in the U.S. and Sanofi is developing U300, a Lantus successor.
    • 2 Dominating diabetes drugs • Januvia is a once-daily pill that helps lower blood sugar in patients with type-2 diabetes. • Janumet combines Januvia with metformin, another type 2 diabetes drug. • Januvia sales totaled $4.0 billion in 2013, up 3% from 2012 (ex-currency exchange). • Janumet sales were $1.8 billion in 2013, up 10% from 2012 (ex-currency exchange. • Merck has 3 ongoing phase 3 trials for new diabetes drugs. – Ertugliflozin (MK-8835): an SGLT2 inhibitor for type 2 diabetes. – MK-1293: an insulin glargine for type 1 and type 2 diabetes. – Omarigliptin (MK-3102): an once-weekly DPP-4 inhibitor for type 2 diabetes Source: Express Scripts 2013 Drug Trend Report and Merck.com 2. Merck & Co (NYSE: MRK): Januvia/Janumet • Januvia was ranked 9th in total drug spend among all traditional therapy drugs last year and Merck has 3 diabetes drugs in phase 3 trials.
    • 6 stock picks poised for incredible growth