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Gilead's Encouraging Remdesivir Data: Rapid Reaction On The Stock

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Gilead's Encouraging Remdesivir Data: Rapid Reaction On The Stock

Shares of Gilead Sciences, Inc. (NASDAQ: GILD) gained more than 15% after Thursday's market close and the encouraging report from STAT is "good news" although anecdotal, CNBC's Guy Adami said. The report is encouraging from a human point of view as keeping people safe is "top of mind for all."

What Happened With Remdesivir

"Remdesivir was one of the first medicines identified as having the potential to impact SARS-CoV-2, the novel coronavirus that causes COVID-19, in lab tests," STAT's Adam Feuerstein reported. "If safe and effective, it could become the first approved treatment against the disease."

The University of Chicago Medicine recruited 125 people with COVID-19 into Gilead’s two Phase 3 clinical trials, according to STAT. Of those people, 113 had severe disease. All the patients have been treated with daily infusions of remdesivir.

The specialist overseeing the studies for the hospital, told STAT: “The best news is that most of our patients have already been discharged, which is great. We’ve only had two patients perish."

Adami: 'No Reason' To Sell

From an investor's point of view, Adami said there's "no reason" not to hold on to shares, especially ahead of its April 30 earnings report. The stock's momentum could continue for at least the next 10 to 14 days.

Being careful with stock exposure is "never a bad idea," especially in the current environment, he said. As such, investors who are sitting on a strong gain in Gilead may want to "take the money and run."

Seymour: Basket Of Pharma

Investors may want to consider owning a basket of big-cap pharmaceutical and biopharma names with names not necessarily focused on the coronavirus, Tim Seymour said. These companies tend to have "reasonably predictable" earnings streams and great balance sheets with good dividends.

Some of the names Seymour highlighted include Merck & Co., Inc. (NYSE: MRK), Sanofi SA (NASDAQ: SNY), and Abbot Laboratories (NYSE: ABT).

Gilead's stock traded higher by more than 15% to $88.22 per share at the time of publication in after-hours trading.

Related Links:

Gilead Analyst Sees Over 50% Chance Of Success For Remdesivir In Mild-To-Moderate COVID-19

Gilead Analysts Break Down Remdesivir Data Readout From Compassionate Use

Latest Ratings for GILD

DateFirmActionFromTo
Sep 2020RBC CapitalMaintainsOutperform
Sep 2020RBC CapitalMaintainsOutperform
Sep 2020Maxim GroupUpgradesHoldBuy

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