I called out the potential of remdesivir on Monday, only to watch it drop 3% on Tuesday. Today, on literally a whisper that the drug might work for COVID-19, the stock was up 16% after a report that one of the Phase III studies was positive.
The report suggested that very ill COVID-19 patients recovered quickly and were sent home within a week after being placed on remdesivir. This treatment could prevent many of the deaths observed with COVID-19 infection. It could also be a determining factor for allowing people back to work, even if exposed to the virus. This would be especially true if there is enough drug to treat all sick patients.
Medical success aside, as is usual the uptick on the stock probably is beyond the corporate value associated with this announcement. Gilead, to its credit, has made the compound available in ways that may limit their upside.
Regardless, today may have been a turning point many have hoped for in our recovery from the pandemic.