Do not let negative data discourage you from Gilead Sciences

<p>Since the world economy is mainly held hostage by the new coronavirus, the incentive to develop a treatment has probably never been more lucrative or critical. Therefore, it was no surprise that Gilead Sciences (NASDAQ: GILD), one of the best organizations in the pharmaceutical sector, threw its name into the ring. As the epidemic developed into a pandemic, the GILD population was generally higher. However, some less than desirable news pointed to a move late last week.

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According to a harmful exposure from the Financial Times, a Chinese trial of Gilead’s drug prospect coronavirus “remdesivir” did not improve patients’ conditions or reduce the presence of the pathogen in the bloodstream. “Furthermore, FT’s Donato Paolo Mancini and Hannah Kuchler wrote that” Researchers studied 237 patients, gave the drug to 158 and compared their progress with the remaining 79. The drug also showed significant side effects in some, which meant that 18 patients were removed from it. ”

The World Health Organization accidentally released this information, which came from a draft document. When the WHO realized the mistake, they quickly took it down from their website. The damage to the GILD share occurred, however, with shares taking a significant dip on 23 April.

Not surprisingly, Gilead’s management team was not happy with the accidental release. Prior to this disclosure, the GILD share moved higher on the potential for belt derivatives. As the New York Times reported, President Donald Trump gave virtually free marketing of the drug, repeatedly referring to it and other drugs as “potential gambling risks.”

Of course, questions have arisen from investors regarding the profitability of remdesivir. Thus, it was not too much of a shock that GILD stocks red ink. But should you follow their lead?

The GILD stock is still in play

First of all, we still do not know much about coronavirus. It is obvious that our health authorities have also shifted their guidelines to mitigate, especially when it comes to face masks. At first, the government did not recommend wearing masks. Evidence of asymptomatic spread, however, changed the story.

And although infection levels in the United States appear to have peaked, we are still on track for this crisis. Therefore, the search for a treatment against Covid-19, not just a vaccine, is still ongoing. With Gilead’s enormous skill and incredible scale, you do not want to dismiss GILD shares in an initial, incomplete study.

Frankly, that’s exactly what this is, crucial. When FT published its report, Gilead responded quickly, stating that the WHO document contained “inappropriate characterizations of the study.” Mainly, because the study was stopped early, management stated that the data did not “enable statistically meaningful conclusions.”

In addition, the draft document was also premature. This prevented other experts from independently analyzing the information, but again, their analysis would probably also be deficient due to the shortness of the study.

For those investors who are worried about GILD shares, they should instead focus on the longer term. Gilead runs its own clinical trials on severe Covid-19 patients. In addition, many other research institutes run their own remdesivir tests, including those that include randomized controlled trials, which is the highest standard in medical studies.

In the end, therefore, the FT report is unlikely to represent definitive, be-everything for GILD stocks and its coronavirus catalyst.

It is also important to point out that Gilead does not reject the FT revaluation from a purely biased perspective. Earlier, when a seemingly favorable study from the New England Journal of Medicine on remdesivir was released, Gilead also decided that the study was not conclusive.

Look at the bigger picture

Before you become cynical about the GILD share, I think it is important to acknowledge that shares have partly reduced losses during the next Friday period. In this environment, there is no shortage of excuses to sell a position. The fact that many investors continued to buy is an encouraging sign that smart money recognizes that the item was not a fatal hit.

Furthermore, major drugs and major authorities are working together to streamline and scale Covid-19 vaccines and treatments. Pharma heavyweight Johnson & Johnson (NYSE: JNJ), for example, goes the vaccine route and says it will increase the scale to an unprecedented level.

In my opinion, Gilead has a more feasible path to success with a treatment option as opposed to a vaccine. For the latter to be effective in an ongoing pandemic, a drug must develop the vaccine and administer it to those who have not yet been infected. Such a massive commitment would stretch even industry giants like Johnson & Johnson.

Of course, this does not guarantee that Gilead has the inside. But with encouraging data from several reports – not just an incorrect example – I am willing to give the GILD share a chance.

Matthew McCall left Wall Street to actually help investors – by getting them into the world’s biggest, most revolutionary trends FOR anyone else. The power of being “first” gave Matt readers the chance to bank + 2,438% in Stamps.com (STMP), + 1,523% in Ulta Beauty (ULTA) and + 1,044% in Tesla (TSLA), just to name a few . Click here to see what Matt has up his sleeve now. Matt does not directly own the above-mentioned securities.