- Gilead Sciences stock was one of just a handful of S&P 500 companies in the green on Monday.
- Investors are hopeful that remdesivir could be a treatment for the coronavirus
- GILD’s bounce is just a taste of the upside it could experience if it develops an effective treatment.
As most of the U.S. stock market flounders amid a massive global flight from risk assets, one stock briefly led the S&P 500 with an astonishing 3.4% rally. Gilead Sciences (NASDAQ: GILD) defied the coronavirus slump after the World Health Organization praised its remdesivir drug as a leading candidate to help fight the global health crisis.
Gilead Sciences Outperforms S&P 500 on Coronavirus Treatment Hopes
With all three of the major U.S. stock market indices down more than 3%, Monday was a terrible day for Wall Street bulls.
For those investors brave enough to dive into the biotech wars to find a coronavirus treatment, there was some gold to be found. Gilead Sciences has emerged as the front runner in providing a drug to combat the disease, according to the WHO’s Bruce Aylward.
Hopes were already high for remdesivir after Gilead claimed that there were optimistic signs based on its animal tests.
Remdesivir has demonstrated in vitro and in vivo activity in animal models against the viral pathogens MERS and SARS, which are also coronaviruses and are structurally similar to COVID-19.
The limited preclinical data on remdesivir in MERS and SARS indicate that remdesivir may have potential activity against COVID-19.
Given that some of these results were on monkeys, which have a close correlation with human genetics, investors are banking on the possibility that this drug, which has been used to help treat HIV and Cholera, gets fast-tracked to human trials.