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Gilead (GILD) Stock Falls Nearly 4% Despite Positive Remdesivir Phase 3 Trial Data

Gilead Sciences Inc (NASDAQ: GILD) has released its findings from phase 3 clinical trial testing remdesivir in patients with a moderate form of COVID-19. Although the study showed quite positive data, Gilead (GILD) stock is down.

Phase 3 trial of remdesivir involved patients with moderate COVID-19 symptoms. The study evaluated 5-day and 10-day courses of treatment with remdesivir along with the standard of care, versus standard of care alone. The findings were as follows. Moderately ill patients in the 5-day remdesivir treatment group were 65% more likely to show clinical improvement on day 11 in comparison with those in the standard of care. As for those taking the 10-day regimen, they did not report a significant improvement.

Francisco Marty, MD, an infectious diseases physician at Brigham and Women’s Hospital, and associate professor of medicine at Harvard Medical School, commented:

“Our understanding of the spectrum of SARS-CoV-2 infection severity and presentations of COVID-19 continues to evolve. These study results offer additional encouraging data for remdesivir, showing that if we can intervene earlier in the disease process with a 5-day treatment course, we can significantly improve clinical outcomes for these patients.”

Gilead’s Chief Medical Officer Dr. Merdad Parsey said:

“We now have three randomized, controlled clinical trials demonstrating that remdesivir improved clinical outcomes by several different measures. Today’s results showed that when treating moderate disease, a 5-day course of remdesivir led to greater clinical improvement than standard of care, adding further evidence of remdesivir’s benefit to previously released study results.”

Gilead’s remdesivir is one of the leaders in the coronavirus vaccine race. It has not been approved by the FDA but has been authorized for use under an Emergency Use Authorization (EUA) for confirmed COVID-19 cases. The authorization is temporary. However, in Japan, remdesivir has proved itself as a treatment for coronavirus patients.

Gilead (GILD) Stock Falling

Despite the fact that the latest data Gilead released are inspiring, Gilead stock is down. On Friday, Gilead shares closed at $77.83. In pre-market today, GILD stock was 1.6% down. By the moment of writing, GILD stock has plunged 3.97% to $74.71. Its market cap makes up $94.48 billion.

Due to working on the COVID-19 drug, Gilead (GILD) stock is 19.78% up this year. Investors can definitely earn a solid payout from holding shares of Gilead. However, the lack of diversification in Gilead’s revenue may be concerning. Gilead has many non-HIV drugs in its portfolio and in its pipeline. But its HIV drugs still drive much of its results and growth.

If remdesivir proves to be absolutely effective in treating COVID-19, Gilead will be a much stronger buy.

Gilead (GILD) Stock Falls Nearly 4% Despite Positive Remdesivir Phase 3 Trial Data