Gilead Sciences (GILD) Stock Price Stuck at $74 but May Jump after Coronavirus Drug Trials

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Several biotech companies are currently trying to come up with some treatment or vaccine for COVID-19 patients. In the last few weeks, these companies have repeatedly made headlines with efforts directed at solving this problem. These efforts have gone on to pump their stocks at different times with Gilead Sciences (NASDAQ: GILD) being one of the beneficiaries. Now, recent developments surrounding Gilead Sciences drug could prove bullish for its stock.

Gilead Sciences Stock (GILD) Could Jump

Years ago, Gilead Sciences produced a drug Remdesivir as a treatment for Ebola. Recent studies into the drug has now shown that it is effective to some extent, with treating COVID-19 patients. Earlier this month, the European Medicines Agency (EMA) gave Remdesivir limited approval, allowing the drug to be prescribed for compassionate use. According to the EMA, patients who have underlying health issues that could worsen their chances of surviving could receive Remdesivir. This also applies if authorized treatments fail. If the drug gains widespread use, Gilead stock could jump significantly.

Gilead has also said that it hopes to have produced 1 million doses of the drug by end of the year. The decision to produce such a large amount of the drug could suggest that there is some more evidence that it is very effective.

Also, Gilead is still doing a lot to study Remdesivir’s effectiveness. Baird analyst Brian Skorney has said he is waiting for data from Chinese trials. Before the end of the month, the data will be ready and could give both Remdesivir and Gilead Sciences a significant boost.

There are also other non-coronavirus reasons to be bullish on Gilead stock. For a few years, Gilead Sciences has been atop the HIV treatment space. Biktarvy, one of the company’s drugs, seems to stand a good chance at leading the market. The company also recently acquired another biotech firm FortySeven for $4.9 billion, cementing its position in the cancer treatment space as well.

Gilead Could Take a Hit

There is however a row of things that could affect Gilead’s rise.

Firstly, there’s a chance, however small, that the result from the ongoing studies could be disappointing. If this happens, GILD might plunge.

Also, Skorney wrote in his note that Remdesivir was not effective against Ebola, dampening his outlook towards the drug. Also, he added that delivering the drug intravenously could prevent it from reaching lung cells where the virus multiplies. The analyst also believes that the virus’s basic behavior could make it difficult for Remdesivir to work if it isn’t administered early enough.

Another threat to Remdesivir is hydroxychloroquine. A drug that has been used to fight malaria for many years, hydroxychloroquine has proven quite effective in treating COVID-19. Many health officials across the U.S. and also in Europe have begun using the drug and even recommending it. If hydroxychloroquine eventually proves as effective, or even more potent than Remdesivir, Gilead stock could take a hit.

Currently, at a pre-market figure of $74.99, GILD climbed 0.43% yesterday and lost 0.093 % today. Gaining over 15% this year, Gilead stock is probably primed for a much bigger jump.

Author: Tolu Ajiboye

Tolu is a cryptocurrency and blockchain enthusiast based in Lagos. He likes to demystify crypto stories to the bare basics so that anyone anywhere can understand without too much background knowledge. When he's not neck-deep in crypto stories, Tolu enjoys music, loves to sing and is an avid movie lover.

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