Gilead Sciences (NASDAQ:GILD) has made promising progress in the treatment of COVID-19 with their drug Remdesivir. The US Bio-tech giant conducted a trial with 53 patients with COVID-19 in the US, Canada and Europe. All 53 patients were considered to have severe complications due to the virus, all needing respiratory support.
“The majority of patients in this international cohort demonstrated clinical improvement and no new safety signals were identified with Remdesivir treatment.”
“Treatment with remdesivir resulted in an improvement in oxygen support class for 68 percent of patients (n=36/53) over a median follow-up of 18 days from the first dose of remdesivir”
The results offer some significance pointing towards positive outcomes in the use of Remdesivir. However, until the next seven trials are successful the drug cannot be deemed safe and effective for COVID-19 use. The 53 patient trial used Remdesivir on a Compassionate basis meaning the patients had no other option available. In a recent Open Letter from the Chairman and CEO of Gilead: the company is currently running two Phase 3 trials in treating severe COVID-19 patients separately to moderate symptomatic patients.
— Gilead Sciences (@GileadSciences) April 11, 2020
Upcoming Trial results dates
- Late April – 400+ severe COVID-19 patients. Data source: Gilead.
- Late May – 600+ moderate COVID-19 patients. Data source: Gilead.
- Late May – 800+ wide range COVID-19 patients. Data source: NIH-NIAID Placebo Test.
- After June – 10,000+ wide range COVID-19 patients. Data source: WHO.
All data found on here.
Gilead Stock Analysis
Gilead (NASDAQ:GILD) has been on an upward trend since January 2020. The US giant yields an impressive $92 billion market cap. Currently trading at $73.51, the stock bounces have remained quite volatile moving on COVID-19 news. After an evaluation, I’m currently looking at an entry price under $70. I concluded that the late April news could provide investors enough confidence to move the stock to $80-$85 (opinion not advice). The current push towards a cure has allowed Gilead to lead the charge and cut an estimated finish date from one year to just six months. Gilead also completed their $4.8 billion acquisition of Forty Seven last week, a cancer focused bio-tech firm currently testing a promising immuno-oncology drug. Gilead if successful in trialing Remdesivir, alongside their recent acquisition puts the firm in a strong position for 2020.
In summary, Gilead is well positioned however it would be wise to remember that these trials will heavily impact Gilead’s share price in the future. Therefore, timing your investment around these trials may give you an advantage. As of yet, there is still no FDA approved treatment for COVID-19.
- Gilead donates 1.5 million doses of Remdesivir to “compassionate user” after finding success in 53 patient trial.
- Emergent BioSolutions currently Gilead’s biggest COVID-19 competitor.
- US vaccines not likely for another 12-18 months say WHO.
The information above should not be taken as financial advice. Youth Investment Group has no liability for personal financial interests or investment decisions. You should make your own investment decisions based upon your own research and what you believe is best for you.