Gilead Sciences (GILD) stock is slightly down despite the progress that the company made in testing of its remdesivir drug that can be used as the coronavirus treatment.

Shares of Gilead Sciences Inc (NASDAQ: GILD) slightly dropped yesterday despite the company announcing advancement in its race for a COVID-19 treatment. GILD shares closed the market on July 8, 2020, at $75.61 after shedding 1.06% per share. Gilead announced on Wednesday that it started Phase 1a of a clinical study to test an inhaled version of its remdesivir.

Today in the pre-market, Gilead stock is 0.040% down despite the progress with remdesivir.

The volatility in the Gilead shares cannot be compared to shares from other companies that are scaling higher by the day despite the coronavirus disruption. The momentum and hype around the Gilead stock market are not as huge as it was at the beginning of the pandemic a few months ago. It can be attributed to different factors, but majorly, investors are rushing to invest in more volatile markets to earn higher profits.

Gilead Sciences Stock Bigger Picture and Remdesivir Progress

Further checking its performance in the past twelve or so months as of the time of publication, they have added 14.23% in the past year, added 16.36% YTD, 2.86% in the past three months, added 3.80% in the last month and dropped 0.97% in the past five days. Although the shares have mostly been on the winning side, the winning ratio cannot be compared to those from companies like Tesla that have added three-digit figures in the same period.

After getting a green light from the FDA to produce more remdesivir meant for critically ill patients, the company announced that it has seen little financial benefit from remdesivir. This comes as the company plans to inject $1 billion on the research and also on the manufacturing of emergency therapy.

A few weeks ago, the company announced the pricing of the vaccine at $390 per vial for 6 vials, hence a total cost of $2,340. The figures were not welcomed well by most as the current economic condition is not favoring the majority of the global population.

The affordability of the drug now was left to the few who can afford the figures, hence creating a fuzz around the company’s will to help the global population. Presumably, investors foresee other small biotech companies capable of overtaking Gilead in delivering a cheap and quality drug, hence fleeing away from it.

However, according to details provided by the U.S. Department of Health and Human Services, the company will deliver 90% of its remdesivir supply to U.S. hospitals, hence already creating a ready market. High chances, its stock market might remain at the same range as the past 52 weeks due to low volatility.

Business News, Market News, News, Stocks, Wall Street

Steve Muchoki
Author Steve Muchoki

A financial analyst who sees positive income in both directions of the market (bulls & bears). Bitcoin is my crypto safe haven, free from government conspiracies.
Mythology is my mystery!
“You cannot enslave a mind that knows itself. That values itself. That understands itself.”

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *