2 Undervalued Firms Well Positioned to Tackle Liver Disease
Wide-moat Gilead and no-moat Intercept have promising treatments for liver disease that could see more than $2 billion in peak sales.
Karen Andersen: Following on the heels of the success of several treatments in the multibillion-dollar hepatitis C market, many drug firms under our coverage at Morningstar see another big opportunity in the liver disease space.
NASH, or nonalcoholic steatohepatitis, is part of a spectrum of nonalcoholic fatty liver disease, which can lead to liver failure and cancer. NASH has no effective treatment, but has a growing pipeline of potential treatments approaching the market. We think the global market for NASH will be worth $12 billion within 10 years, taking the potential for some clinical trial failures into account, and almost $26 billion assuming all advanced drug candidates reach the market.
Karen Andersen does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.