Japan Plans To Approve Gilead’s Remdesivir Today- Report
Japan intends to approve Gilead’s (GILD) Covid-19 treatment remdesivir today, according to a live interview with Japan’s Prime Minister Shinzo Abe on May 6.
Abe revealed that he plans to discuss with experts on May 14 how the county can begin to lift its present state of emergency. According to Bloomberg this will be based on both the rate of new infections and the capability of the overall healthcare system.
On Sunday, the drugmaker said that its remdesivir Covid-19 treatment will be available to patients as early as this week. Remdesivir, a direct acting antiviral drug that inhibits viral RNA synthesis, received emergency US approval on May 1.
“We continue to believe remdesivir (RDV) supply will be a fragile balance and suggest keeping watch as the pandemic continues to unfold unpredictably” commented RBC Capital analyst Brian Abrahams on May 5.
He has a buy rating on the stock and $88 price target. With shares trading up 19% year-to-date, his price target indicates upside potential of 14%.
“With reported COVID-19 infections not declining as perceptibly as most models had originally predicted… we now believe in our base case GILD would only be able to supply the medicine to ~1/3 of U.S. pts who could benefit from it throughout the summer” he continued.
TipRanks data shows that out of the 28 analysts covering Gilead in the past three months, 15 are now sidelined with a Hold rating on the stock, 8 say Buy and 5 say Sell, adding up to a Hold consensus rating. The $79.39 average price target suggests analysts see limited upside potential in the shares in the coming 12 months. (See Gilead stock analysis on TipRanks)
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