This New Drug Could Be Gilead Sciences' Growth Catalyst
Gilead Sciences (NASDAQ: GILD) has been a top stock to own this year, with its shares rising 17% and dwarfing the S&P 500 and its 21% loss over the same stretch. And the company may have given investors a reason to remain bullish on the stock. Health officials have given the green light on another one of its HIV treatments, which promises to improve lives and potentially generate billions in revenue for the business. Is now the time to load up on Gilead's stock?
On Dec. 22, Gilead Sciences issued a press release announcing that the Food and Drug Administration (FDA) had approved its HIV treatment, lenacapavir, which will be sold under the name Sunlenca. The treatment is approved for people who have multidrug-resistant HIV. The twice-yearly injectable will also mean a longer-lasting option than the daily pills many HIV patients rely on today. It's important to note that it is not approved for all people with HIV -- only for those who "cannot be successfully treated with other available treatments due to resistance, intolerance, or safety considerations."
For investors, this is an important win as it could lead to a blockbuster for Gilead. Analysts project that lenacapavir could bring in $1.5 billion in revenue at its peak. That would represent about 5.5% of the $27 billion in product sales that Gilead reported last year.
Source Fool.com
