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FDA approves Dovato for adolescent HIV treatment

EditorEmilio Ghigini
Published 2024-04-08, 08:38 a/m
Updated 2024-04-08, 08:38 a/m

DURHAM, N.C. - ViiV Healthcare, a specialist HIV company majorly owned by GSK (LON:GSK), announced the FDA approval of Dovato, a single-tablet regimen for HIV-1 treatment in adolescents. This approval expands treatment options for individuals aged 12 and older who weigh at least 25 kg, providing a two-drug regimen for those with no antiretroviral treatment history or for those virologically suppressed on a stable regimen without treatment failure or resistance.

The FDA's decision is based on results from the DANCE study, which showed promising outcomes in maintaining viral suppression among adolescents. The study's findings align with data from adult trials, indicating a comparable safety and efficacy profile. Dovato combines dolutegravir, an integrase strand transfer inhibitor, with lamivudine, a nucleoside reverse transcriptase inhibitor, to target different stages of the HIV replication cycle.

This development marks a significant milestone as the first oral, two-drug, single-tablet regimen for the adolescent HIV population, addressing a critical need for simplified treatment options. The approval is also seen as a step forward in ViiV Healthcare's commitment to improving HIV care for children and adolescents.

Lynn Baxter (NYSE:BAX), Head of North America at ViiV Healthcare, emphasized the importance of this new treatment option, noting its potential to ease the lifelong treatment journey for young people living with HIV.

Dovato is already approved for use in adults and adolescents in the U.S., Europe, Japan, Australia, and other countries worldwide. The medication's safety profile includes warnings for patients co-infected with HIV-1 and hepatitis B virus, as well as potential hypersensitivity reactions and hepatotoxicity.

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The information in this article is based on a press release statement from ViiV Healthcare.

InvestingPro Insights

In light of ViiV Healthcare's recent FDA approval of Dovato for adolescents, its majority owner GSK stands to potentially benefit from this expanded treatment landscape. GSK, a prominent player in the Pharmaceuticals industry, has shown a strong financial performance with recent data from InvestingPro. The company's market capitalization stands at a robust $83.58 billion, reflecting investor confidence in its market position and product offerings.

An InvestingPro Tip highlights GSK's valuation, suggesting a strong free cash flow yield. This is an important metric for investors, as it indicates the company's ability to generate cash and potentially reinvest in growth opportunities, such as the development and expansion of treatments like Dovato. Additionally, GSK's stock generally trades with low price volatility, which may appeal to investors seeking stability in their portfolio.

From a financial perspective, GSK's P/E Ratio (Adjusted) for the last twelve months as of Q4 2023 is 10.47, which could be considered attractive compared to industry peers. The company's revenue growth for the same period was 3.42%, demonstrating a steady increase in its financial performance. Moreover, the dividend yield as of the latest data is 3.87%, coupled with the fact that GSK has maintained dividend payments for 24 consecutive years, making it a potentially attractive stock for income-focused investors.

For those interested in further insights and tips, InvestingPro offers additional guidance on GSK. With a total of 10 InvestingPro Tips available, investors can gain a more comprehensive understanding of the company's financial health and market position. To access these insights, consider subscribing to InvestingPro using the coupon code PRONEWS24 for an additional 10% off a yearly or biyearly Pro and Pro+ subscription.

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This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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