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Gilead Sciences started developing an antiviral drug to fight the covid-19 pandemic a few weeks ago, and on 16th April 2020, it was reported that the clinical trial of the company’s drug displayed extremely positive signs. The phase three clinical trial of the company’s antiviral drug called Remdesivir was closely watched and its details were leaked, giving the shareholders a reason to cheer amid all the gloom. This was followed by the company’s stocks jumping by around 20 per cent in just two days. The trial, which was conducted by the University of Chicago, and displayed patients quickly recovering and feeling better from any respiratory symptoms of the Covid-19 disease.
How Remdesivir evolved?
During the 2013-16 West African Ebola outbreak, there was the involvement of Gilead with US Military Clinical Research Institute of Epidemiology and the US Centres for Disease Control and Prevention, where Remdesivir originated from a partnership to find antiviral drugs. This functions by stopping the molecular model that certain viruses use to replicate and create their genomes. Clinical trials against Ebola virus brought encouraging results first in West Africa and then in the Democratic Republic of Congo, but those outbreaks fizzled out before Remdesivir had been thoroughly tested to the satisfaction of medical regulators. Everywhere else, it remains an unlicensed drug.
What has been the company’s response?
On 10th April 2020, the company’s CEO wrote an open letter to the public in which they reported that approximately seven clinical trials were conducted to determine whether or not Remdesivir is a safe and successful COVID-19 drug. The CEO also mentioned that due to the tremendous efforts of the numerous groups involved, and the degree of information they had on Remdesivir, each of these was set up with the unparalleled pace.
The experiments needed to be flexible in nature to some degree, as the company’s knowledge of the disease itself continues to grow. The outbreak of the virus and its spread at an extreme pace, leaving everyone just to ponder on it. The understanding of the findings will also depend on what the company keeps on hearing about the illness. In early February, China conducted the first two trials of patients with serious and moderate disease symptoms. A further 5 trials have been conducted around the world since then.
Experts say the things are still uncertain
Since the outbreak, various experts from the medical and biotechnology fraternity have been suggesting this kind of success in a clinical trial could be a matter of sheer luck only. Some were quoted saying that even if Chicago's positive results are verified when they are publicly published, later this month researchers may term it a "private label experiment" in which everybody is aware of the Remdesivir’s infusion. Covid-19's progression is complex and uncertain, which may be called a boon with positive results. However, if Remdesivir in these controlled trials produces promising results, concerns remain as to whether Gilead will generate enough Remdesivir to meet what could be a huge demand worldwide. The University of Oxford decided to include Remdesivir in its current large-scale clinical trial to test the efficacy of proven drugs against Covid-19 but was unable to receive enough.
Immediately after the details of the clinical trials were leaked, the company’s stocks saw significant action on all stock exchanges where the stock is listed. The following are the performance highlights of the company’s stock price.
0QYQ Stock Price Performance
(Source: Thomson Reuters) Daily Chart as on 17-April-2020, before the closing of the London Stock Exchange Market
At the time of the close of markets on 17th April 2020, by the time of writing this report, the Gilead Sciences Inc stock was at a price of US $82.13 per stock on the London Stock Exchange market, an increase in the value of 8.25 per cent or US $6.26 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at US $75.87 per share. Gilead Sciences Inc's market capitalisation was estimated to be GBP 105.74 billion, with regards to the current market price of the company's stock.
Gilead Sciences Inc's share has been reported to have gained around 29.38 per cent in value in the last twelve months since April 17, 2019, when the company’s stock was trading at a price of US $63.48 per share at the time of the closing of the London Stock Exchange market. Gilead Sciences Inc's share reportedly increased from the share price of US $73.43 per share set by the organization on March 17, 2020 by about 11.85 per cent over the last one month.
At the time of writing, the beta of the firm's stock was recorded at a value of 0.66 pointing towards the fact that the company’s price movement is less volatile relative to the change in the value of the comparative benchmark index.
While Gilead is involved in the research and development of Remdesivir, there are other biotech firms in the United Kingdom which are also on the forefront of the fight against the Covid-19 Pandemic. Two such companies are Genus Plc and Abcam Plc. The following are the comparative stock price performances of both of these companies and how their shareholders have reacted to the news of Gilead’s success.
GNS Stock Price Performance
(Source: Thomson Reuters) Daily Chart as on 17-April-2020, before the closing of the London Stock Exchange Market
At the time of the close of markets on 17th April 2020, by the time of writing this report, the Genus Plc stock was trading at a price of GBX 3600.00 per stock on the London Stock Exchange market, an increase in the value of 1.69 per cent or GBX 60.00 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 3540.00 per share. Genus Plc's market capitalisation was estimated to be GBP 2.303 billion, with regards to the current market price of the company's stock.
Genus Plc's share has been reported to have gained around 54.77 per cent in value in the last twelve months since April 18, 2019, when the company’s stock was trading at a price of GBX 2326.00 per share at the time of the closing of the London Stock Exchange market. Genus Plc's share reportedly increased from the share price of GBX 2760.00 per share set by the organization on March 17, 2020 by about 30.43 per cent over the last one month.
At the time of writing, the beta of the firm's stock was recorded at a value of 0.51 pointing towards the fact that the company’s price movement is less volatile relative to the change in the value of the comparative benchmark index.
ABC Stock Price Performance
(Source: Thomson Reuters) Daily Chart as on 17-April-2020, before the closing of the London Stock Exchange Market
At the time of the close of markets on 17th April 2020, by the time of writing this report, the Abcam Plc stock was trading at a price of GBX 1156.00 per stock on the London Stock Exchange market, an increase in the value of 3.31 per cent or GBX 37.00 per stock, as opposed to the price of the stock on the previous trading day, which had been reported to be at GBX 1119.00 per share. Abcam Plc's market capitalisation was estimated to be GBP 2.306 billion, with regards to the current market price of the company's stock.
Abcam Plc's share has been reported to have lost around 5.97 per cent in value in the last twelve months since April 17, 2019, when the company’s stock was trading at a price of GBX 1229.40 per share at the time of the closing of the London Stock Exchange market. Abcam Plc's share reportedly increased from the share price of GBX 1029.00 per share set by the organization on March 17, 2020 by about 12.34 per cent over the last one month.
At the time of writing, the beta of the firm's stock was recorded at a value of 1.53 pointing towards the fact that the company’s price movement is more volatile relative to the change in the value of the comparative benchmark index.
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