Drug developer Gilead soars to 16-month high after WHO official says its experimental treatment is best shot for fighting coronavirus
- Biotech company Gilead soared as much as 6.9% Monday morning after a World Health Organization official made a hopeful comment on its experimental coronavirus treatment.
- The drug developer's remdesivir compound is the "one drug right now that we think may have efficacy," Bruce Aylward, an assistant director-general at the WHO, said Monday, Bloomberg reported.
- The jump comes amid a broad market slump fueled by coronavirus' rising death toll outside China.
- Watch Gilead trade live here.
Shares of drug developer Gilead soared amid a broad market slump on Monday after a World Health Organization official offered a promising comment on its experimental coronavirus drug.
The company's remdesivir drug was pushed to clinical trial as the coronavirus outbreak intensifies around the world. The experimental compound is the "one drug right now that we think may have efficacy," Bruce Aylward, assistant director-general at the WHO, said at a Beijing briefing, according to Bloomberg.
The company soared as much as 6.9% after the open before paring some gains. The jump pushed Gilead's shares to their highest level since October 2018.
Results from the clinical trial are expected in the coming weeks, Bloomberg reported.
Coronavirus is responsible for 2,626 deaths and has infected more than 79,000 individuals as of Monday morning. A recent spike in deaths outside of China ratcheted up fears of the outbreak becoming a pandemic. The Dow Jones Industrial Average plunged nearly 1,000 points early Monday as heightened risks jolted investors and drove many into safe-haven assets.
Gilead was one of two companies in the 100-stock Nasdaq Composite to post a gain in Monday's session as of 12:50 p.m. ET.
The biotech company's stock is up roughly 13% in February, surging on investor hopes that its treatment can be the first to curb the coronavirus outbreak. Gilead spiked as much as 13% on February 3 after Bloomberg News reported the remdesivir drug would begin human trials in Beijing.
Gilead traded at $72.10 per share as of 12:50 p.m. ET, up 9% year-to-date.
The company has 15 "buy" ratings, 13 "hold" ratings, and two "sell" ratings from analysts, with a consensus price target of $74.91, according to Bloomberg data.
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