Why didn't Gilead Sciences' share price rise much?

Read: Pharmaceutical companies are racing to develop treatments for new coronaviruses, but big investment firms are wary of betting on possible winnersPharmaceutical companies are racing to develop treatments for new coronaviruses, but big investment firms are wary of betting on possible winnershedge funds and venture capital firms are investing in business and economic future projections, and these institutions are increasingly confident that researchers will develop effective drugs to fight the epidemicHowever, these investors believe that successful drug development, which promises to benefit millions or even billions of people, may not generate huge profits for shareholdersSome investors have even been bearish on some pharmaceutical companies, arguing that their progress in the treatment of Covid-19 in 2019 is sparking over-excitementJoseph Edelman manages the $4.2 billion New York hedgemedical fund Perceptive Advisors"Most of these stocks don't match the reality, " he saidThe fund looks at a disconnect between the share prices of pharmaceutical companies such as Gilead Sciences Inc., and its potential therapeutic or vaccine profitsshares are up 18.9 per cent so far this year, thanks to the intravenous antiviral drug remdesivirRecent data show that Redciewe can shorten the recovery time for patients hospitalized with new coronavirusesIt is hard to predict whetherdrugs will succeed, but those betting on new crown therapies face unique challengesSome of the most innovative and promising treatments are completely unprovenBusinesses are competing with foreign governments and non-profit organizations determined to make their own breakthroughsSuccessful drugs or vaccines can encounter pricing, production and sales challengesquestions for investors include: Can new crown drugs help both patients and personal protection, or do they need different drugs to achieve both goals? Will vaccines reduce the need for therapeutic drugs? Will the government allow companies to set prices high enough to generate substantial profits? Larry Robbins, of Glenview Capital Management,, is avoiding bets on potential new crown drugs, in part because he expects researchers to find a vaccine that will limit demand for new crown drugs, even the most effective ones "We're all cheering for humanitarian treatments, but as investors you have to believe that the treatment works and that sales will last a long time enough to have a real impact on a company," he said "
Gilead Sciences is also one of the stocks that investors think about Investors said the company expects to produce more than 1 million sessions of ridsibei by the end of the year, and that the drug will contribute billions of dollars in sales in the new year Investors bullish on the stock believe the company would be more popular if it could develop an inhaled version or other alternative intravenous version of Redcivir On March 18, Gilead's lab technicians in Raven, California, loaded a bottle of Redseyway Photo Source: GILEADSCIENCES/REUTERS
but Gilead has pledged to donate 1.5 million doses of the drug free of charge to hospitals to treat the 2019 new coronavirus disease, and the price of the drug that will be charged later is unclear, raising doubts about the final profit the company has previously been criticised for overpricing its drugs for AIDS and hepatitis The company may face pressure to rein in Redsie's costs, especially as US President Donald Trump has publicly criticised drug prices if Gilead costs $4,000 per course, as some investors predict, 1 million patients will generate $4 billion in revenue That would be well below Gilead's $14.6 billion market capitalisation so far this year, and it has not taken into account the drug's estimated research and development costs of about $1 billion, which could be deducted from any potential profits some investors who have been bearish on Gilead's share price are not convinced by Theridwest's efficacy Dr Joseph Lawler, head of JFL Capital Management, a hedge fund, said: "Even if Ridsywe had only a few slight effects, people would still prescribe the drug, but Gilead wouldn't make much money "The fund is shorting Gilead A spokesman for Gilead said it had not yet priced Ridseyway said: "At this time, our focus is on ensuring that the public receives Ridsyway through our donations, and after the donation is completed, we are committed to making Ridsiewe available and affordable to governments and patients around the world." Dr Luciana Borio, former head of the medical and biodefense preparedness division of the National Security Council, or NSC, said smaller, unlisted companies were likely to get the most effective treatments, rather than public companies This is another challenge for investors "For truly innovative and disruptive technologies, there's an opportunity to get funding and attract interested partners," she said "
some investors are focusing on treatments that both may help treat patients and prevent people from contracting the virus, which is a larger potential market These investors are betting on therapies that use antibody proteins produced by the body's immune system These antibodies may block the activity of the coronavirus "protrusion" protein, which prevents the virus from infecting healthy cells edelman, Perceptive, owns The Antibody Therapy Leader Regeneron Pharmaceuticals Inc (REGN) shares Regeneron is using a "monoclonal" antibody method in which scientists select the most powerful antibodies from recovering new crown patients, or, like Regeneron, from mice that are given to the human immune system, and then clone them and convert them into drugs Regeneron plans to conduct clinical trials in early summer and prepare to produce hundreds of thousands of doses of the drug each month starting in late summer Robert Nelsen, , helped run Venture Partners, a venture capital firm that made early bets and success on cancer immunotherapy Nelsen is supporting VIRBiotechnology Inc (VIR), the company plans to test its monoclonal antibody therapy this summer "I'm urging them every day," says Nelsen We don't know if the virus will weaken, strengthen or stay the same this fall, but in 1918 it got stronger when it came back, so we have to be prepared Regeneron's share price has risen 52 per cent so far this year, adding $23 bn to its market value, while VIR's share price has risen 148 per cent and its market value by $2.3 billion over the same period some investors said that if the vaccine was developed, it could limit the potential of these stocks Nelsen countered that researchers may take longer than expected to develop a vaccine, creating a huge market for antibody therapy he believes that vaccines are never 100% effective, so antibody therapy may be the key to preventing a recurrence of the outbreak a high-risk, high-return strategy: buy ingress with small companies with upside potential Edelman and Nelsen own a large stake in VBIVaccines Inc The untested biotech company says it has an experimental vaccine The company's shares closed Thursday at $2.07 predict ingress a successful vaccine that may even be harder than predicting a cure for new coronary pneumonia In some ways, Chinese companies and a team at Oxford University are leading the way some companies say they will distribute the vaccines they develop at cost, which could reduce profits for others But the potential market is huge, and some investors believe that multiple vaccine combinations may be needed to meet global demand, and that it may be possible for younger, healthier people to use low-cost vaccines and more effective vaccines for people with impaired immune of the most exciting of the vaccine-making companies, Moderna Inc., which has pushed its shares soaring 230 percent this year Moderna is currently working on human trials of its 2019 coronavirus disease (Covid-19) vaccine Moderna's strategy is to use the virus's genetic sequence to produce a vaccine, rather than based on the virus's actual genetic material The company uses the edited substance Messenger RNA (mRNA), which aims to guide the patient's immune system to produce antibodies to the neo-coronavirus Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases, , called the approach "impressive." The method could soon lead to the development of a vaccine Pfizer Inc and Germany's BioNTech are also working on their own mRNA vaccines however, analysts say mRNA technology is expensive and has never been used to develop approved drugs or vaccines Moderna is now worth $24 billion and $6.5 billion in early 2020 As for Pfizer, the company has a market capitalisation of $211 billion, so it's unclear how much the vaccine could add to the company's market value some investors are skeptical of some of the most popular new corona virus concept stocks JFL Capital's Lawler is shorting Inovio Pharmaceuticals Inc., a small pennsylvania firm Despite the company's limited success, the company's share price is up 314 per cent this year A spokesman for Inovio said the company was conducting the first phase of trials of a new coronavaccine, with results expected in June, while the company was developing other drugs responsibility editor: penicillin this article is a drug intelligence network reprinted content, copyright belongs to the original author, the purpose of reproduction is to convey more information, does not represent the views of this platform If the content of the work, copyright and other issues, please contact this website message, we will delete the content in the first place related labels: U.S , Gilead , , new coronapneumonia , special effects drugs 0
0