The World Health Organization said at a Beijing press briefing that Gilead Sciences may have the “one drug” that has the efficacy too treat the Coronavirus.
All three major U.S. stock indexes fell as much as 3% each Monday, as the coronavirus spreads globally. It has hit Italy in particular.
Gilead Sciences shares rose as much as 5%, but was up 4.52% to $72.85 a share by late morning, Monday.
Still, several key questions need to be addressed before the bullishness on the stock can accelerate.
First off, the WHO hasn’t said it has looked deeply into Gilead’s Remdesivir drug, the one that can provide treatment to the virus. It’s possible other drugs makers could produce drugs that can be effective as well, an outcome that would more evenly distribute markets share for this type of rug.
Secondly, as Gilead has sent Remdesivir into trial, it remains to be seen whether there will be any set backs or issues with the trial.
Thirdly, the drug may pass the trial, but may ultimately fail in its mission, another outcome not out of the question when it comes to drug makers.
Drug makers were outperforming the broader market Monday, with Merck up 0.11% to $82.41 and Pfizer down just 1.57% to 2% to $35.
As we await further clarity on the coronavirus and any potential treatments, Real Money's Stephen Guilfoyle warns to expect continued volatility from Gilead and the drugmakers going forward.