Gilead Sciences (NASDAQ:GILD) faded sharply in the last week after Galapagos (GLPG) reported the FDA asked for more data. The filgotinib, which treats rheumatoid arthritis, will push the drug release into 2021.
Despite its progress in shipping and providing treatment for COVID-19, GILD stock continues to trade in a downtrend. The filgotinib delay is unfortunate but does not damage the fundamental potential in Gilead stock.
Still, Gilead’s latest quarterly results were weakened by the COVID-19 pandemic. The weak EPS of $1.11 (missing estimates by 34 cents) and revenue of $5.14 billion, down 9.53%, is testing the patience of investors. When COVID-19 vaccine stocks are up five-fold or more, Gilead moving nowhere is a frustration.
Gilead shares pay a dividend that yields 4.1%. That is a respectable level despite shares going nowhere. Pfizer (NYSE:PFE), for example, underperformed the drug stock sector for several months. It was not until its work with BioNTech (NASDAQ:BNTX) that the stock started to rally since the end of June.
Gilead needs a positive catalyst. Remdesivir is a potentially positive development as production increases. The long-term may come when the Kite unit reports positive development for its CAR-T cell therapy. Of course, markets are acting as though Kite will not post any good news.
