Gilead’s stock has fared better than the broader markets through the current coronavirus and oil price war crisis, with the stock currently up by about 10% since early February, after the WHO declared a global health emergency. In comparison, the S&P 500 is down by about 16%. On the face of it, Gilead stands to benefit in this crisis, as it is viewed to have found a treatment for Covid-19, with its Remdesivir drug, which is currently under trials. Interestingly, even in the 2008-09 crisis, Gilead’s stock did not see any major decline, and it outperformed the broader markets by a wide margin. Below we discuss how the company’s stock reacted to the economic crisis of 2008 and compare its performance with the S&P 500. View our complete dashboard analysis on 2008 Crisis vs. 2020 Coronavirus Comparison: Gilead Sciences Stock Compared with S&P 500
Gilead’s revenues have been on a decline over the last few years, primarily due to its HCV (Hepatitis C Virus) drugs, which are trending lower amid increased competition from other drugs.
If the company succeeds with its trial for Remdesivir for the treatment and a potential vaccination for Covid-19, it will likely be a major positive driver for the company’s stock. For perspective, the flu vaccination market alone is worth around $4 billion, and given the extent of Covid-19, the vaccination sales could be much larger in size. Some of the analysts have pegged over $6 billion sales for Remdesivir in the first year, if successful for the treatment of Covid-19. This would compare with the total $22 billion Gilead generated in 2019.
Another pharma major, Johnson & Johnson (NYSE: JNJ), in collaboration with Beth Israel Deaconess Medical Center, is also developing a vaccine for Covid-19.
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Started by metmike - March 17, 2020, 11:37 a.m.