But due to the bears’ inaccurate arguments, the shares don’t yet fully reflect the drug’s value. https://www.barrons.com/articles/gilead-stock-drops-after-goldman-sachs-issues-sell-rating-51559058396. That’s $4 billion of revenue. Finally, a Gilead-sponsored study found that 8% of patients with “severe manifestations of COVID-19” who received a ten-day dose of remdesivir died. The Man Who Recommended 23 1,000% Winners Is Revealing His #1 Stock for 2020. In that context, the 8% mortality rate that Gilead reported among the severe coronavirus patients sounds very impressive. And finally, in an environment in which many companies are giving away drugs and other products that are being used to combat the coronavirus, Gilead would indeed have been harshly criticized if it charged for remdesivir immediately. By. While anti-viral therapeutics are generally very complex to develop, it’s likely that a successful treatment will be developed before a vaccine considering that many treatment candidates are drugs initially developed for other diseases that could also prove effective against COVID-19. While some analysts have cheered the stock, others have warned that Gilead and the other major biotech firms need to make major acquisitions to build up their pipelines. GlaxoSmithKline announced that it would collaborate with Vir on a potential treatment, that would leverage Vir’s monoclonal antibody platform, besides making a $250 million equity investment into the company. He said the company has a “very limited” mid-to-late stage pipeline, or portfolio of drugs under development. Among his highly successful, contrarian picks have been GE, solar stocks, and Snap. We've detected you are on Internet Explorer. Human trials could begin as early as June. The back story. 2020 InvestorPlace Media, LLC. Shares of the biotech firm Gilead Sciences Inc. An error has occurred, please try again later. A vial of remdesivir at a Gilead manufacturing site in the United States. These reservations have kept Gilead’s shares from truly breaking out. (, Secondly, Gilead may not have a similar level of pricing power for Remdesivir as it does for its other anti-viral drugs given the higher profile of the coronavirus pandemic. In addition, 17 of 30 patients who had been on ventilators were able to come off those machines — a key factor, since COVID-19 patients who need to be put on ventilators appear to be more likely to suffer long-term health consequences, and may have worse outcomes. But due to the bears’ inaccurate arguments, the shares don’t yet fully reflect the drug’s value. For more details on the stock price and fundamental performance of some of the key U.S. listed companies developing coronavirus therapeutics, view our COVID Treatment Stocks, [Updated 4/26/2020] An Overview of Coronavirus Treatment Stocks. It should be noted that none of the patients who received remdesivir in Gilead’s study were on a ventilator when the study began. COVID-19 does not have a vaccine or a treatment, and scientists are racing to figure out ways to assist patients suffering from the previously unseen virus. “It went on to describe the early results as “inconclusive,” and added: “Trends in the data suggest a potential benefit for remdesivir, particularly among patients treated early in disease.”. Another treatment, hydroxychloroquine, promoted from the White House by President Donald Trump, has seen mixed results and, in some cases, deaths. But patients taking the drug had a survival rate of 8%, versus 11.6% for those taking a placebo. That would be nearly 40% of the company’s 2019 revenue. Gilead, which has the first FDA-authorized coronavirus treatment, has seen its stock slump. That’s another $4 billion of revenue. Larry began writing columns for InvestorPlace in 2015. Secondly, Gilead, which has been criticized in the past for excessive prices, wanted to build up goodwill before asking governments and insurers to pay for the drug. News of an effective treatment or vaccine are needed for the economy to start a return to normal, investors say. Sign with logo for pharmaceutical company Gilead in the Silicon Valley, Foster City, California, ... [+] April 11, 2020. Trefis is currently used by hundreds of thousands of investors, company employees, and business professionals. Gilead’s statement helped steady afternoon trading. “Remdesivir sounds like something that can get people out of hospitals quickly,” CNBC's Jim Cramer said in a tweet last week. “This can clearly take time and we anticipate there will be tremendous competition for innovative/growth assets.”. developed nations. Just as many internet companies like Netflix (NASDAQ:NFLX) and Zoom (NASDAQ:ZM) offer free trials of their products to demonstrate that they work and provide value, Gilead wanted to quickly show hospitals, patients and governments that remdesivir is effective before seeking payment for it. On the other hand, biotech majors Gilead and Regeneron, who have seen their stocks rally by 24% and 51% respectively this year, could offer better downside protection, considering that they already have other revenue-generating products. ETF and Mutual Fund data provided by Morningstar, Inc. Dow Jones Terms & Conditions: http://www.djindexes.com/mdsidx/html/tandc/indexestandcs.html. However, Gilead stock is down by over 7% over the last 5 days and there could be a couple of reasons for this. Nasdaq Market data provided by Interactive Data. Shares of the biotech firm Gilead Sciences Inc. were trading down on Tuesday, after an analyst at Goldman Sachs downgraded the stock and slashed his price target. In the second half of the year, after a vaccine can likely be widely administered, I predict that Gilead will sell another 2 million doses to governments for stockpiling, at an average price of $2,000 per round. There’s evidence that those with severe cases have mortality rates ranging from 28%-62%. This copy is for your personal, non-commercial use only. Claire Atkinson is the senior media editor for NBC News. The Institute for Clinical and Economic Review, which uses a variety of metrics to determine fair prices for drugs, estimated that remdesivir should cost $4,500 per round.
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