Gilead Sciences Inc., whose Covid-19 treatment has whipsawed markets amid conflicting early reports about its efficacy, is set to report the first results from a company-sponsored study of the experimental drug.
Data from the first 400 severely ill coronavirus patients being treated with remdesivir in an open-label study are expected before the end of next week. While not expected to provide a definitive answer on efficacy, the report is likely to again trigger wide swings in Gilead’s shares and the broader market. Options prices show investors expect a more than 9% move in the drugmaker’s stock price over the next week.
Leaked results from a study out of China sent Gilead shares and the S&P 500 Index spinning lower on Thursday as investors pin their hopes on a treatment or vaccine. A week ago, the drugmaker’s stockrose the most since November 2012, bringing the U.S. benchmark higher with it, after data from one of Gilead’s testing sites was leaked to Stat, a medical news site.
The potential for an effective coronavirus medication has become key for investors trying to assess the extent of the pandemic’s damage to the economy, with shutdowns bringing activity to a near standstill in many places. A drug cure or treatment is now the most important swing factor for investor sentiment, according to Evercore ISI strategist Dennis DeBusschere.
28,819 in U.S.Most new cases today
-17% Change in MSCI World Index of global stocks since Wuhan lockdown, Jan. 23
-1.132 Change in U.S. treasury bond yield since Wuhan lockdown, Jan. 23
-0.5% Global GDP Tracker (annualized), March