Why Gilead Sciences stock hit the market today

There was some good news in the clinical sphere for Gilead Sciences (NASDAQ: GILD) on Thursday, and that sent the stock price up nearly 3% in that trading session. An late-stage clinical trial of an experimental drug produced encouraging initial results, hence the increase. In comparison, the S&P 500 the index rose by 0.8% on the day.

The HIV drug is doing well in the lab

The news from Gilead was that the second phase three study of the HIV drug lenacapavir met its key efficacy goals for preventing the disease. An interim analysis of the study found that the drug reduced new infections with the disease by 96 percent compared with background HIV incidence. Lenacapavir, which is given only twice a year, was more effective than Truvada, the classic HIV drug given once a day by the health care company.

HIV, which causes acquired immunodeficiency syndrome (AIDS), was a major health scourge when it exploded in the 1980s. Since then, increasingly sophisticated and effective drugs — most notably Truvada — have been developed to treat.

In its press release trumpeting the drug’s performance, Gilead quoted its CEO, Daniel O’Day, as saying, “With such remarkable results in two phase 3 trials, lenacapavir has demonstrated the potential to transform HIV prevention and help stop the epidemic..”

Next step: Approval?

Reasonably enough, Gilead will use data from both clinical trials in filings for regulatory approval. The company added that it will start making such filings by the end of this year. He didn’t get more specific with the timing or give details on where it will be sent.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions and recommends Gilead Sciences. The Motley Fool has a disclosure policy.

Why Gilead Sciences stock tanked the market today was originally published by The Motley Fool