The world is desperately awaiting a vaccine for the novel coronavirus. If it is ready later this summer, it would greatly prevent a second wave infection. But for those infected, an antiviral would save their lives.
Gilead Sciences (NASDAQ:GILD) stock rose to 52-week highs and was up ~10% last week on news of its remdesivir results.
In Phase 3 clinical trial, the University of Chicago Medicine recruited 125 people infected with the virus. 113 of them were severely infected. All subjects were treated with remdesivir daily.
Two subjects died while the majority of the patients were discharged.
Importantly, many ongoing studies will give scientists meaningful data that evaluates this drug’s usefulness in saving lives. Subjects who got better after taking the antiviral responded and could leave in six days.
GILD stock traded in a $62 – $65 range for much of last year. At 20 times earnings, the stock trades at a slight premium to established peers. But the stock is also better value than the biotechnology firms who do not have a product on the market yet.
If doctors choose Gilead’s drug for treating severe cases, then the recurring revenue for the product will grow annually. Plus, remdesivir may be used to treat other viral infections, increasing its addressable market.