Gilead Sciences, Inc. (NASDAQ: GILD)
When you think of Gilead Sciences, what’s the first thing that comes to mind. If you’re like most investors, the answer is the hepatitis C virus. However, with all of the talk about the battle between GILD and ABBV, it seems as though the primary focus has been on HCV. However, one thing that investors seem to be forgetting is that Gilead Sciences also has a strong hold of the HIV market; and today, they’re being reminded. Today, news has broke about a new experimental drug that could be the cure HIV patients have been waiting for. Today, we’ll talk about the experimental medication, how the market is reacting to the news, and what I believe we can expect to see from GILD moving forward.
GILD May Have Found A Cure For HIV
Surprisingly enough, Gilead Sciences may have accidentally stumbled upon a cure for HIV. They’ve created a compound that seems to be potent enough to not only knock out currently active HIV, but to kill the virus all together. The new treatment is called GS-9620; an oral receptor-7 agonist that is being studied for the treatment of hepatitis B invections.
The results of the hepatitis B studies show that the compound has the unique ability to activate multiple aspects of the immune system; which could prove to be an effective way to cure hepatitis C. In two preclinical studies that used human cells as well as nonhuman primates, GILD found that the compound significantly increased the amount of detectable virus. Since the biggest problem associated with curing HCV is the fact that much of the virus lies dormant and undetectable, this could lead to a cure by activating latent carrying cells and allowing them to be targeted by treatment. Essentially, the compound is now being tested as a way to shock inactive cells into activity; allowing a cocktail of antiviral drugs to completely get rid of the virus all together.
How The Market Reacted
This is incredibly big news; and as we’ve come to expect, we’re seeing a positive reaction from GILD in the market today. While we’re not seeing massive gains, the stock is up. Currently (12:49), Gilead Sciences is trading at $110.79 per share after a gain of 1.36% so far today.
What We Can Expect To See From GILD Moving Forward
Moving forward, I’m expecting to see positive news in both the short-term and long-term outlooks for GILD. The reality is that the company has proven that even in the face of worthy competition, they’ve been able to maintain control of the hepatitis C market. Now, as they continue to innovate, they’ve stumbled upon what may become a way to cure HIV. The bottom line here is that with the company’s strong management, incredibly talented doctors and scientists, and clear desire to continue with the improvement of patients’ lives through innovative treatment, it only makes sense that this stock is going to grow!
What Do You Think?