Why Hotel Stocks Are Surging Today
By now, you've probably heard the good news: On Tuesday, Gilead Sciences (NASDAQ: GILD) announced that a clinical trial of its COVID-19 treatment drug remdesivir conducted by the National Institute of Allergy and Infectious Diseases (NIAID) has met its primary endpoint.
Separately, data from a phase 3 SIMPLE trial of the drug, conducted by Gilead itself, suggests that a five-day course of treatment with the drug may be just as effective as a 10-day course of treatment. This implies that if the drug works, then a given amount of remdesivir could cure twice as many patients as previously predicted.
Although remdesivir has not yet been demonstrated to be safe or effective for the treatment of COVID-19, Gilead said, the government seems pleased. So, too, are investors in hotel stocks, who are betting that this drug advances the day when the coronavirus will be brought under control, and Americans will resume traveling, buying plane tickets, and making hotel reservations.
Source Fool.com
