For Gilead, Its Coronavirus Treatment Is Icing on the Cake
Gilead Sciences (NASDAQ: GILD) created the antiviral drug Remdesivir as a possible treatment for Ebola and the Marburg virus, and it's since been found to be potentially effective in treating COVID-19, the disease caused by the novel coronavirus. Some investors think this could mean significant revenue in the near term for Gilead, and the stock is up 10% so far this year.
But despite the potential short-term benefit from Remdesivir, I believe investors interested in Gilead should focus on three factors that could contribute to sustainable long-term shareholder returns: its strong cash position, its continued development of external business, and its ongoing progress in moving its drug candidates toward approval and launch.
Since the coronavirus pandemic began in the middle of February, Remdesivir has dominated the news and discussion regarding Gilead's future. Two major events have subsequently boosted the company's stock price. First, at a press conference Feb. 24, Dr. Bruce Aylward, a senior advisor to the World Health Organization (WHO), specifically cited Remdesivir as the one drug that could be effective in treating coronavirus patients. Second, on Feb. 26, Gilead initiated two Phase 3 clinical studies to evaluate the safety and efficacy of remdesivir in adults diagnosed with COVID-19.
Source Fool.com
