Gilead Sciences Inc. (NASDAQ: GILD)
When it comes to the world of medicine, Gilead Sciences is a major player. As a matter of fact, the company currently leads the world in both HIV and hepatitis C treatments. However, they did take a decent hit in the stock market Monday after sending a warning to doctors about their hepatitis C treatment. Today, we’ll take a close look at what the warning was and why it was issued. We’ll also chat about how GILD stocks have been affected so far and whether or not this will be a major hindrance to growth in the long run.
Giliad Sciences Warns Doctors About Sovaldi
Sovaldi is the hepatitis C treatment that has turned Gilead Sciences into a leader. However, there was an eerie warning issued about the treatment to doctors on Monday. The warning was specifically for doctors who are in the process of treating patients for irregular heartbeat in serious situations using a combination of Sovaldi and antiarrhythmics.
How GILD Stocks Reacted To The News
In trading on Monday, GILD fell by more than 2% following the company’s announcement. Since then, we’ve seen heavy volatility in the bio tech giant’s stock price. On Tuesday, we saw the stock recover completely in morning trading before dropping yet again. Today, the recovery was a bit weaker before the fall. However, don’t let the current market movement fool you…there’s more you should know.
This Most Likely Won’t Have Any Affect On Sovaldi Sales
You read that right. While Sovaldi in combination with antiarrhythmics is a dangerous combination, the drug is proven to be incredibly effective in the treatment of hepatitis C; the cause for the vast majority of sales. As a result, most analysts believe that the bad news about the combination therapy for irregular heartbeat in serous situations will have no affect on overall sales in the long run.
My Personal Opinion Of Gilead Sciences As An Investment
Overall, I think GILD is a great long term investment choice. Even more so now considering the fact that the stock price is currently down. The bottom line is that as the world’s leader in treatments for 2 major ailments that don’t seem to be going away any time soon, Gilead Sciences will continue to generate revenue and continue to grow!
What Are Your Thoughts?
Where do you think GILD stocks are headed in the long run? Let us know in the comments below!