In barely a month when its shares topped $85 in April, Gilead Sciences (NASDAQ:GILD) is fading. Investors moved on to the next COVID-19 play, including Moderna (NASDAQ:MRNA), Novavax (NVAX), and Dynavax (NASDAQ:DVAX). Yet the millions of doses of remdesivir will give the company highly valuable data.
Gilead’s dip to the $73 range creates another entry point for investors interested in the drug manufacturing space.
The National Institutes of Health ("NIH") said that remdesivir improves time to recovery. Any marginal value to helping patients fight COVID-19 is welcome news. Even if the drug helps those who required supplemental oxygen, that extra data point will help doctors better understand the best course of treatment.
The NIH noted that the 7.1% mortality at 14 days suggests that patients need an additional therapy alongside this antiviral.
In the weeks ahead, trial data from the approximately 8,000 participants will give investors a better idea on Gilead’s virus drug program. Still, the company continues to make healthy profits from its hepatitis and HIV drugs.
Its Kite Pharmaceuticals acquisition expands the company’s prospects in cancer immunotherapy products. So, in the long run, its development of a genetically engineered autologous T cell therapy may bear fruit.
