Wall Street was jubilant after a pair of studies showed that a drug from Gilead Sciences (GILD) worked in patients with new coronary pneumonia. Jpmorgan Chase, the Wall Street investment bank, says a viable treatment for the coronavirus may be on the horizon. “Put down the bleach, remdesivir is coming,” JPMorgan biotech analyst Cory Kasimov said in a note to clients On Wednesday.
The analyst’s comments were a mockery of U.S. President Donald Trump’s comments last week that bleach was shot in the body. Of course, the president later said he was sarcastic.
“This is critical because this study is a placebo-controlled group that should help really show the effects of remdesivir,” Kasimov said. “We have to wait for detailed results to fully understand the effects of the drug, but given the unmet needs, significant differences and seemingly acceptable tolerances, we believe that it is highly likely to be approved.” “
JPMorgan gave Gilead an increase in its rating and maintained its July 2019 target of $85 for 12 months. Gilead’s shares jumped more than 6 per cent on Wednesday to about $83 a share.
Stocks moved higher as hopes of effective treatments increased. The Dow Jones Industrial Average jumped more than 500 points on Wednesday, giving it a 12 percent gain so far this month. The stock market is extremely sensitive to any progress made by pharmaceutical companies in their solutions to the pandemic.
In a study released Wednesday, the U.S. National Institute of Allergy and Infectious Diseases commented optimistically on Gilead’s drug remdesivir.
In addition, the company said another study by remdesivir showed an improvement in the drug’s appearance in patients with coronary virus resusorion. Gilead said the study of 200 patients showed that some patients were able to achieve remission during the five-day treatment regimen.
“These findings complement data from the Remdesivir placebo-controlled study conducted by the U.S. National Institute of Allergy and Infectious Diseases to help determine the optimal treatment time for remdesivir,” Merdad Parsey, chief medical officer at Gilead, said in a statement. “This study shows that some patients are likely to receive a five-day treatment regimen, which can significantly increase the number of patients we currently offer remdesivir treatment. “