It has been an eventful year for Gilead Sciences Inc. (GILD - Analyst Report), a big name in the biotech sector. Gilead, which soared 100.11% in 2013, is up only around 30% year-to-date (YTD). Throughout 2014, the company was in the news mainly due to its hepatitis C virus (HCV) treatment, Sovaldi, which was approved by the FDA in Dec 2013. While the drug’s approval was a welcome relief for HCV patients who had postponed treatment as they awaited better and safer treatment options, Gilead’s pricing of the drug came under heavy criticism.

Sovaldi Pricing Issues

In fact, in late Mar 2014, the pricing issue came to the forefront with U.S. lawmakers questioning Gilead about the same -- the $84k price tag for a 12-week treatment period was considered too expensive.

This shook the entire biotech sector and resulted in a selloff that was fueled further by speculation about a biotech bubble. Rumors that other drugs would also come under the same pricing scrutiny started doing the rounds.

Despite pricing concerns, Sovaldi showed no signs of slowing down with the product bringing in sales of $8.6 billion in the first nine months of 2014. Gilead had more good news in store -- another HCV treatment, Harvoni, with huge commercial potential gained approval this year.

Express Scripts Chooses AbbVie’s HCV Treatment

However, Gilead again saw some weakness in its share price with AbbVie (ABBV- Analyst Report) gaining approval for its cocktail HCV treatment, Viekira Pak and signing up with pharmacy benefit manager Express Scripts (ESRX - Analyst Report). Express Scripts, which covers about 25 million Americans, said that from Jan 1, 2015, AbbVie’s HCV treatment will be the exclusive option for patients with genotype 1 hepatitis C, regardless of symptoms or disease progression.

Sovaldi, Harvoni and Johnson & Johnson’s (JNJ - Analyst Report) Olysio would no longer be on the Express Scripts National Preferred Formulary. This news triggered concerns about pricing pressure in the overall biotech sector and Gilead fell on concerns regarding the growth prospects of its HCV drugs.

A Look at Some Biotech Stocks That Fared Better than Gilead

Here is a look at a few biotech stocks with a link to the HCV market that fared better than Gilead in 2014.

North Chicago, IL-based AbbVie fared better than Gilead with a YTD return of 33.35%.  AbbVie, a Zacks Rank #2 stock (Buy), is a strong contender in the HCV market with its highly-awaited Viekira Pak gaining FDA approval recently. Earnings estimates are on the rise and Viekira Pak is being viewed as a blockbuster. Express Scripts’ backing should help AbbVie pick up share in the U.S. market.

Boston, MA-based Vertex Pharmaceuticals Inc. (VRTX - Analyst Report) is another stock which did well this year and is worth keeping an eye on in 2015. Vertex was once a force to reckon with in the HCV market. Incivek, approved by the FDA in 2011, changed the treatment paradigm in the HCV market and brought in billion dollar sales for the company. However, with newer treatments like Sovaldi entering the HCV market, Vertex saw a sharp decline in HCV sales and decided to exit the market.

Did this decision pay off? It has definitely been a good year for Vertex. The company shifted its focus entirely to its cystic fibrosis (CF) portfolio and flagship product, Kalydeco, has blockbuster potential.

This Zacks Rank #3 (Hold) stock has delivered a YTD return of 62.25% and has multiple catalysts stored for 2015 in the form of Kalydeco’s label expansion, launch in additional territories and potential approval of the Kalydeco-lumacaftor combination.

Meanwhile, it’s been an exceptionally good year for New Haven, CT-based Achillion Pharmaceuticals (ACHN - Snapshot Report). While the company is definitely not in the same league as Gilead, it deserves a place in this list. Often touted as a takeover candidate, Achillion has delivered a YTD return of 283.64% and has been consistently in the news thanks to positive updates on its HCV pipeline. This Zacks Rank #2 company is a stock to keep an eye on in 2015 as it continues to provide updates on its experimental HCV treatments.

HCV to Remain in Focus

Will AbbVie change the competitive scenario in the HCV market now that its cocktail treatment has gained approval and is also being supported by Express Scripts? What will be the impact on Harvoni and Sovaldi sales? Will more new HCV treatments enter the market in 2015? Will the biotech sector face pricing pressure for other highly-priced drugs?

These are the questions that have surfaced with the AbbVie -- Express Scripts deal and will keep the HCV market and companies like Gilead, AbbVie and Achillion in focus in 2015.