Industry experts, investors, and medical enthusiasts in the biotech and pharmaceutical sector have been excitedly following the HIV prevention sector.

While there is currently only one prevention pill on the market from Gilead (NASDAQ: GILD) and is selling at an astronomical rate, a recent mandate from the Trump administration to eliminate HIV prevention by 2030 will lead to an explosion in demand for these products.

Merck leads the way

Merck (NYSE: MRK) in particular is one of the few companies in the lead to develop the next generation of cheaper, more effective HIV prevention pills. Today the company revealed early data on this upcoming HIV drug which the company promises will be “a game-changer.”

Their new HIV drug, called MK-8591, was touted many times in previous press releases and corporate events as having “remarkable properties” and that there is nothing like it in the markets today. Specifically, Merck says that this new drug combination could have fewer side effects and could even be turned into an implant that would be given once a year to patients at high risk of contracting HIV.

Results for this drug are being presented in Mexico City at the annual International AIDS Society meeting, with data showing no patient discontinuations in response to the treatment. While most patients reported some degree of adverse side effects, these were all reported to be rather mild and manageable.

“I can’t tell you how super-excited I’m about 8591,” said Daria Hazuda, Merck’s vice president of infectious disease discovery. “It really is, at least for me, in HIV, almost a once-in-a-lifetime molecule. If you would have told me even a few years ago that you could find a molecule in any infectious disease, let alone HIV, that you could dose once a day, once a week, once a month, that had the pharmacology and potency that would allow it to be formulated in a long-acting formulation that could deliver and release effective drug levels for a year, I would have never ever believed it.”

Merck’s new HIV drug is considered a potential competitor to Gilead, especially since it’s release is speculated to arrive sometime in 2023, at least a year or two ahead of Gilead’s next-generation HIV drug lineup. This would give Merck enough time to seize a substantial market share due to this first-to-market advantage.

Shares of Merck were up around one percent, at least partially in response to the news. Given the size of the company, it’s unlikely that any one piece of news – unless extremely significant – will have a significant impact on the company’s stock.

Merck Company Profile

Merck makes pharmaceutical products to treat several conditions in a number of therapeutic areas, including cardiovascular disease, asthma, cancer, and infections. Within cancer, the firm’s immuno-oncology platform is growing as a major contributor to overall sales.

The company also has a substantial vaccine business, with treatments to prevent hepatitis B and pediatric diseases as well as HPV and shingles. Additionally, Merck sells animal health-related drugs. From a geographical perspective, close to 40% of the company’s sales are generated in the United States. – Warrior Trading News