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Early indications show that Gilead’s stradesivir medicines work well in clinical trials. Two-thirds of a small group of patients who were very sick with coronavirus showed improvement after taking stradesivir.
This is a dose of good news that we all need during a pandemic that has so far killed almost 130,000 people around the world, including more than 26,000 in the United States. In total, there are more than two million cases worldwide.
That said, I’ve been looking at GILD stocks and their belt test closely because I think the drug may be a game changer for Gilead stocks. And with that in mind, let’s take a closer look at GILD.
GILD stock at a glance
The GILD share has increased more than 16% so far in 2020. The shares are traded in high volatility when investors drink up all the information they can find about possible coronavirus treatments.
On a typical day, about 21 million shares in GILD shares will change hands on Wall Street. However, there have been many days this spring where the number was up to 30 million or more.
In addition, the GILD share trades at a reasonable price level of 17.8. And it has a solid dividend yield of 3.6% and pays out at $ 2.72.
The result for the fourth quarter was also a big dud for the GILD share. Gilead reported $ 1.30 earnings per share, and analysts’ expectations of $ 1.67 per share were missing. But that was before Gilead identified remdesivir as a possible coronavirus treatment, which quickly spread around the world.
Gilead developed strap derivatives to treat Ebola, as well as MERS and SARS – both of which are coronavirus strains with similarities to the strain that created today’s global pandemic. So it seems like it might be good for COVID-19 treatment.
GILD Stock and Remdesivir
Believe it or not, Gilead’s possible coronavirus treatment is flying under the radar. It is not promoted in President Donald Trump‘s daily press releases in the late afternoon, as the chief executive seems to prefer the malaria drug hydroxychloroquine.
But within the scientific community, there is hope that Gilead’s drugs can be effective. The World Health Organization has highlighted remdesivir as one of the best options for treating coronavirus.
In fact, Evercore ISI analysts called the early results “a ray of hope” – and RBC analyst Brian Abrahams agreed:
“The data is probably not sufficient to convince people that this could significantly end the crisis, but enough to believe that there is a certain chance that remdesivir, together with other drugs under development, could play a potential role in helping to be some blunt morbidity / mortality of the disease. ”
Doctors in Wuhan, China – where the pandemic originated – are conducting two phase 3 studies with more than 800 patients, although it is unclear whether investors will see the data as at least one study was terminated early due to low enrollment.
Gilead is also conducting two of its own Phase 3 studies in Asia. And while it was hoping to get results by the end of this month, the company now says the first reading will be available by the end of May. Remdesivir was also granted “extended access” status to physicians in New York, New Jersey, and Louisiana for seriously ill patients.
In addition, Gilead’s chairman and CEO Daniel O’Day says the company is willing to spend “hundreds of millions of dollars” to manufacture belt detectors if the trials are successful.
The conclusion on GILD stock
Remdesivir trials will be the largest catalyst for GILD equities during the second quarter and beyond. If trials to be completed this spring continue to show effectiveness, remdesivir expects to become a household name.
The GILD share has a “B” rating in my Portfolio Degrees.
Louis Navellier had an unconventional start, as a student who accidentally built a market-beating stock system – with returns equal to Warren Buffett. In his latest achievement, Louis discovered the “Master Key” to take advantage of the greatest technological revolution of this (or any) generation. Louis Navellier may include some of the above securities in one or more of its newsletters.