Gilead Sciences (GILD) Stock: Setting Leadership Position In Stone

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Gilead Sciences, Inc. (NASDAQ: GILD)

Gilead Sciences has been an incredibly interesting stock to watch over the past year or so. The company completely dominates the hepatitis C market. However, for about a year now, there have been several questions surrounding the prices of their lead treatments, Harvoni and Sovaldi. Nonetheless, yesterday, news came out with regard to a new treatment that will cost less. Today, we’ll talk about the newly approved treatment, how the market reacted to the news, and what we can expect to see from GILD moving forward.

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GILD Receives Another Approval From The US FDA

As mentioned above, yesterday was an incredibly strong day for Giliad Sciences. The company announced that it has received another approval from the FDA. The approval surrounds the company’s treatment known as Epclusa. Epclusa is a combination treatment that combines sofosbuvir 400 mg and velpatasvir 100 mg.

This is an incredibly important approval for GILD, as it is the first all-oral, pan-genotypic, single tablet regimen for the treatment of adults with genotype 1-6 chronic hepatitis C virus infection. It is also the first single tablet regimen approved for the treatment of HCV genotype 2 and 3, without the need of ribavirin. Excluding the use of ribavirin is incredibly important, as the drug has extreme side effects.

Another incredibly important factor is price. As mentioned above, GILD has been under fire with regard to the pricing of Harvoni and Sovaldi. Nonetheless, the new treatment, Epclusa comes with a relatively low price. The course of the treatment will come at a cost of only $74,760 before discounts!

In a statement, Ira Jacobson, MD, Chairman of the Department of Medicine at Mount Sinai Beth Israel, New York City, and one of the principal investigators in the Epclusa clinical trials, had the following to say:

The approval of Epclusa represents an important step forward in the global effort to control and potentially eliminate HCV as it provides a safe, simple and effective cure for the majority of HCV-infected patients, regardless of genotype… Building on the established backbone of sofosbuvir, Epclusa demonstrated consistently high cure rates across all genotypes, including among patients with genotype 2 and 3, who traditionally have required ribavirin or other multi-pill regimens.”

How The Market Reacted To The News

As investors, one of the first things we learn is that any time positive news is released with regard to a publicly-traded company, we can expect to see gains in the value of the stock associated with the company. In this particular case, the news was overwhelmingly positive. After all, GILD has received yet another approval that sets its leadership in HCV in stone. As a result, the stock gained by more than 4% in yesterday’s trading session. Today, we’re seeing a slight correction as the stock sees small declines. Currently (11:28), the stock is trading at $82.08 per share after a loss of $0.23 per share, or 0.28%, thus far today.

What We Can Expect To See Moving Forward

Moving forward, I have an overwhelmingly bullish opinion of what we can expect to see from Gilead Sciences. The company has not only built its way into a leadership position in the HCV market, it has proven its ability to maintain that leadership. This became clear last year when AbbVie tried to take their piece of the pie. Now, with the new approval, GILD is showing that it has no plans on slowing down innovation. All in all, the company has great products, a drive to continue to create more, and a compelling expertise in making sure sales climb. Moving forward, I’m expecting to see gains!

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What Do You Think?

Where do you think GILD is headed moving forward? Join the discussion at TalkTRENDZ from CNA Finance!

[Image Courtesy of Flickr]

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Hey, Im Joshua, the founder of CNA Finance. I enjoy following the trends in the market and finding the catalysts that are making the moves. If you want to get in contact with me, leave a comment below or email me at CNAFinanceHelp@gmail.com Please keep in mind that I am not an investment advisor and nor is CNA Finance. This is a news and information gathering outlet. We may work directly with some of the companies that we write about. If we have a business relationship with an issuer, we will mention that in the articles. We also have various affiliate relationships with advertisers and may be paid if you sign up for a service that you were referred to through our website.

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