NIH starts testing Gilead's remdesivir as treatment for COVID-19

A randomized, controlled clinical trial to evaluate the safety and efficacy of the investigational antiviral remdesivir in hospitalized adults diagnosed with coronavirus disease 2019 (COVID-19) has begun at the University of Nebraska Medical Center (UNMC) in Omaha.

Remdesivir is a compound developed by US biotech major Gilead Sciences (Nasdaq: GILD), whose shares jumped 4.6% on Monday, ahead of the NIH announcement after a World Health Organization official remarked that the product was "the most promising candidate” as a treatment for COVID-19. However, the stock fell back 3.8% to $70.10 on Tuesday as analysts said remdesivir was unlikely to be the big money-spinner for the company in the short term.

Goldman Sachs has said that Gilead’s month-to-date move had already priced in as much as $5.5 billion in extra sales, but the Financial Times pointed out that Roche (ROG: SIX) and GlaxoSmithKline (LSE: GSK) had together made just $4 billion from government stockpiling swine flu treatments in 2009.