Gilead Valuation Only Minimally Effected By Drug Trial Stoppage

Following Gilead Sciences, Inc.'s GILD announcement that it's stalling the Phase 2/3 study of its ulcerative colitis treatment candidate code named 5754, Jefferies said valuation could be impacted to the tune of only $1. The firm has a $91 price target for the shares.

While terming the discontinuation as a disappointment, Jefferies' analyst Brian Abrahams said he still believes expectations were low and see many other pipeline data points to read out in the coming months. These, according to the analyst, includes filgotinib, momelotinib, 9620, bictegravir, simtuzumab, 4997, and have received little value and have the potential to drive upside, if successful.

Shares of Gilead Sciences were down 0.41 percent at $81.36.