Is Gilead Sciences a Buy After Its Most Recent Roadblock?

Gilead Sciences (NASDAQ: GILD) navigated the coronavirus market crash better than most. At one point, the biotech's antiviral drug, Veklury (remdesivir), was considered one of the most promising potential treatments for COVID-19. In May, the U.S. Food and Drug Administration (FDA) granted Veklury an Emergency Use Authorization (EUA), which allowed the drug to be administered to patients with serious cases of COVID-19. As a result, enthusiastic investors bid up shares of the company. However, the healthcare giant lost some momentum after the FDA warned about potentially harmful drug interactions involving remdesivir, and consumers realized the treatment was just that -- a treatment -- not a fail-proof cure for the virus.

While the stock market has recovered since its low in March, Gilead Sciences has been moving in the opposite direction. Overall, the company's stock is up by 1.66% year to date, while the S&P 500 is up by over 6% in the same period. What's more, Gilead and its shareholders just received some discouraging news. The FDA denied the approval of the company's treatment candidate, filgotinib, as a therapy for rheumatoid arthritis (RA). Let's see why this rejection was significant and what it means for Gilead Sciences moving forward.