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Gilead Up on Report of AstraZeneca's Interest in Merger
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Shares of Gilead Sciences, Inc. (GILD - Free Report) gained after a Bloomberg report stated that U.K.-based AstraZeneca (AZN - Free Report) was interested in a merger with the former last month.
However, Gilead reportedly showed no interest in the possible merger.
Gilead’s shares have rallied 18.7% in the year so far compared with the industry’s growth of 7.9%.
The company has been in the news from the onset of the year owing to its promising experimental coronavirus treatment, remdesivir. The company recently reported mixed results from a late-stage study on investigational antiviral, remdesivir, in hospitalized patients with moderate COVID-19 pneumonia. Data showed that patients in the five-day remdesivir treatment group were 65% more likely to have clinical improvement at day 11 compared with those in the standard-of-care group.
However, the odds of improvement in clinical status for the 10-day treatment course of remdesivir versus standard of care alone were favorable but did not attain statistical significance. We remind investors that the FDA granted remdesivir an Emergency Use Authorization for the treatment of hospitalized patients with severe COVID-19, given the severity of the pandemic. The drug is currently approved in Japan as a treatment for patients infected with COVID-19. While a potential approval of remdesivir will be a boost, there is uncertainty regarding the drug’s profitability in the long run. Moreover, the drug might not generate returns once a vaccine is out.
Nevertheless, Gilead is a leader in antiviral treatments. It is looking to diversify its business as the HCV business has lost sheen. The HIV business maintains momentum for the company, driven by Biktarvy, but faces stiff competition from ViiV Healthcare, a joint venture of Glaxo (GSK - Free Report) and Pfizer (PFE - Free Report) . The company is also bolstering its oncology pipeline with collaborations.
Meanwhile, AstraZeneca is gearing up for the development of a potential vaccine to prevent COVID-19. The company has collaborated with the University of Oxford for the latter’s recombinant adenovirus vaccine, formerly known as ChAdOx1 nCoV-19 and now, AZD1222.
It is also evaluating Calquence (acalabrutinib) in CALAVI and ACCORD studies and Farxiga (dapagliflozin) in the DARE-19 study in COVID-19 patients.
Gilead, probably, is better off on its own as any merger of such stature comes with its own set of risks and it might not be complementary in a post-pandemic world.
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Gilead Up on Report of AstraZeneca's Interest in Merger
Shares of Gilead Sciences, Inc. (GILD - Free Report) gained after a Bloomberg report stated that U.K.-based AstraZeneca (AZN - Free Report) was interested in a merger with the former last month.
However, Gilead reportedly showed no interest in the possible merger.
Gilead’s shares have rallied 18.7% in the year so far compared with the industry’s growth of 7.9%.
The company has been in the news from the onset of the year owing to its promising experimental coronavirus treatment, remdesivir. The company recently reported mixed results from a late-stage study on investigational antiviral, remdesivir, in hospitalized patients with moderate COVID-19 pneumonia. Data showed that patients in the five-day remdesivir treatment group were 65% more likely to have clinical improvement at day 11 compared with those in the standard-of-care group.
However, the odds of improvement in clinical status for the 10-day treatment course of remdesivir versus standard of care alone were favorable but did not attain statistical significance. We remind investors that the FDA granted remdesivir an Emergency Use Authorization for the treatment of hospitalized patients with severe COVID-19, given the severity of the pandemic. The drug is currently approved in Japan as a treatment for patients infected with COVID-19.
While a potential approval of remdesivir will be a boost, there is uncertainty regarding the drug’s profitability in the long run. Moreover, the drug might not generate returns once a vaccine is out.
Nevertheless, Gilead is a leader in antiviral treatments. It is looking to diversify its business as the HCV business has lost sheen. The HIV business maintains momentum for the company, driven by Biktarvy, but faces stiff competition from ViiV Healthcare, a joint venture of Glaxo (GSK - Free Report) and Pfizer (PFE - Free Report) . The company is also bolstering its oncology pipeline with collaborations.
Meanwhile, AstraZeneca is gearing up for the development of a potential vaccine to prevent COVID-19. The company has collaborated with the University of Oxford for the latter’s recombinant adenovirus vaccine, formerly known as ChAdOx1 nCoV-19 and now, AZD1222.
It is also evaluating Calquence (acalabrutinib) in CALAVI and ACCORD studies and Farxiga (dapagliflozin) in the DARE-19 study in COVID-19 patients.
Gilead, probably, is better off on its own as any merger of such stature comes with its own set of risks and it might not be complementary in a post-pandemic world.
The company currently carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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