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Gilead Sciences (GILD) stock is climbing on news of that its coronavirus Remdesivir proved to be efficient even in severe cases. The stock could rise much further as trials continue.
There is currently no approved treatment or vaccine for COVID-19, the disease caused by the coronavirus. However, the promise of an effective course of treatment is ever-present as many companies try to find a potent method of tackling the pandemic. While there is still a lot of work to be done, Gilead Sciences (NASDAQ: GILD) seems to be leading the pack with its Remdesivir pushing GILD stock upwards.
Recent reports suggest that a University of Chicago hospital is treating COVID-19 patients with Remdesivir, in a clinical trial. The hospital is using the drug, even on patients with severe symptoms, and seeing positive results. Medical news site STAT specifically reported that nearly all patients treated with Remdesivir were discharged in less than a week. In response to this news, Gilead Sciences stock jumped 16% yesterday.
Gilead Sciences developed Remdesivir many years ago, to treat other strains of the coronavirus like SARS and MERS. The drug, while not yet approved by the United States Food and Drug Administration (FDA), most of the news on Remdesivir’s efficiency has been quite positive. China and a few other countries are also using the drug. Apart from the University of Chicago, there are 151 other places where Remdesivir trials are ongoing.
The University of Chicago Medicine’s trials involve 125 patients, as part of Gilead Sciences’ clinical trials. 113 of this group were already displaying severe symptoms. According to the University’s infectious disease specialist Kathleen Mullane, only two patients have died. While she says the University has discharged most others, she did not specify a number. Gilead’s trials should involve a total of 4,000 COVID-19 patients by the time it’s over.
GILD climbed 16% on the positive news, up to $89. It was trading at $85.25 in the pre-market, it is still well up from its close yesterday, at $76.54. Now the stock is up as well. Now it is rising by 8% and is trading at nearly $83. GILD stock has performed quite healthily so far. Its 2020 gains are inching close to 18% with more than 21% gains over the last year. With 21.53% in the last 3 months, GILD stock has been riding the COVID-19 wave quite well and is quite primed for growth.
According to a report from The Mercury News, the New England Journal of Medicine recently published a Remdesivir analysis. The report says that more than two-thirds of a small group of “severely ill COVID-19 patients” responded positively to treatment.
If further results prove Remdesivir to be very effective, there’s a good chance that the whole world might strive to obtain as many doses as possible, to help reduce the worldwide death toll. Even with all of the positive results, medical experts all over the world are warning people to tread with caution. According to them, a lot still needs to be done before Remdesivir can be officially recommended anywhere, as a potent COVID-19 drug.