The U.S. Food and Drug Administration (FDA) has approved Gilead Sciences’ (NASDAQ:GILD) antiviral therapy Remdesivir to treat Covid-19.
Remdesivir becomes the first drug to obtain FDA approval for treating the Coronavirus. U.S. regulators had granted an emergency-use authorization for Remdesivir earlier this year, and since then the drug has become a widely used therapy in hospitalized Covid-19 patients. It was given to U.S. President Donald Trump this month when he was diagnosed with the virus.
The approval of Remdesivir, sold under the brand name Veklury, allows Gilead to market the drug and talk about its benefits to doctors, nurses, and patients. That could help solidify its position as a go-to medicine for Covid-19 patients even as other drugs for the disease begin to reach the market.
The Gilead made drug hasn’t been proven to reduce deaths from Covid-19. In a World Health Organization trial, the medicine failed to reduce fatalities, according to preliminary results that were posted last week.
Gilead shares gained 3.4% in after-market trading after the FDA approval was announced.
Analysts estimate that Remdesivir will have sales of $2.17 billion U.S. this year, according to Bloomberg News. The company said in June that it will charge U.S. hospitals roughly $3,120 U.S. for most patients who need Remdesivir.
