Gilead (GILD) fell about 10%, or $8.86 on a disappointing cancer drug study.
According to NBC, “The company did not significantly extend the lives of patients with certain lung cancer in a late-stage trial. The phase-three study was part of an effort to expand the use of Trodelvy, which is already approved to treat some types of breast and bladder cancers. Patients with advanced or metastatic non-small cell lung cancer who took Trodelvy lived longer than those who got chemotherapy alone, according to Gilead. But those results did not meet the trial’s bar for success.”
That led to a 10% decline.
However, according to Evercore ISI, the pullback is an overreaction.
“Technically, this was a high-risk trial after AZN’s similar Trop2 ADC drug also missed in this lung setting. For that reason, I don’t think reaction should be this hard. – However, I do acknowledge, that GILD was well owned into the new year,” they noted. “The reason to like GILD is that it’s a long-term growth story … driven by HIV (not oncology) – and that remains fully intact. In that vein, and knowing that AZN trial had already cast doubts on this GILD study, I think -10% is an overreaction.”
That being said, we’ll keep an eye on GILD for potential entry on the drop.