Where is Gilead Now? (2nd Article)
Michael Chai | May 2nd, 2020 | Editor: Nichola Monroe
Previous Gilead article: Here
With the antiviral drug, Remdesivir approved and adequately tested, Gilead has made great strides since the writing of the previous article. The virus has continued to spread, even though the strict regulations and quarantine rules vary between countries. Thus Remdesivir from Gilead is looked upon as a saving treatment for many.
Recently, phase three trials were conducted for Remdesivir. Gilead released optimistic results on April 29 through an online press release. In short, the trials consisted of 5-day and 10-day dosing durations in hospitalized patients with severe manifestations of the COVID-19 virus. Patients in the 10-day treatment course achieved improvement in clinical status as well as those who participated in the 5-day treatment course. Although Gilead provided no clear definition of “improvement” for Remdesivir patients, there is a copious amount of optimism surrounding the drug, as GILD stock remains stable.
Within a day prior to writing this article, Gilead was approved by the FDA under emergency circumstances for patients exhibiting extreme symptoms of COVID-19. As of right now, Gilead is distributing Remdesivir prescriptions nationwide and only offering this drug to patients in the worst conditions, as there is a limited supply of it.
What does all this mean?
Although Remdesivir may not be the savior drug the world has hoped for, it is the best medicine currently offered. Because Gilead’s news was released over the weekend, it is too early to predict what the GILD stock will do. However, disregarding the effects of Remdesivir, Gilead remains a low-risk buy. The company’s dividend pays well with a quarterly dividend of $0.64, which equates to a 3.4% return annually, compared to the average S&P 500 stock that only pays 2% per year. Analyzing its P/E ratio of 18, the volatility remains low even if the hailed Remdesivir fails. Overall, positives still exist in GILD’s stock. If the rollout of Remdesivir fails, Gilead will still survive. If Remdesivir succeeds, Gilead has nowhere to go but up.
Written for Lallic Partners