Key Points

  • Gilead Sciences experiences an 11% drop in stock value after disappointing trial results for its lung cancer drug Trodelvy.
  • Gilead's phase 3 clinical trial for Trodelvy did not meet its primary goal of extending life in patients with advanced lung cancer.
  • Despite a survival benefit, market analysts question if the results are sufficient for regulatory submission.
  • Analysts argue that the negative market response to Gilead's trial results may be unwarranted, as the company's long-term growth potential lies in its HIV treatments.

Gilead Sciences (NASDAQ: GILD) is grappling with an 11% drop in its stock value following the setback of its advanced-stage clinical trial for the drug Trodelvy. The trial results, which showed no significant extension of life for patients with a specific form of lung cancer, triggered a substantial decline in Gilead's shares, marking the steepest drop since 2015.

The Trial Results

Gilead, headquartered in California, reported that its phase 3 clinical trial, named EVOKE-01, did not achieve its primary goal of extending life in patients with advanced or metastatic non-small cell lung cancer (NSCLC) who had previously undergone platinum-based chemotherapy or immunotherapy with checkpoint inhibitors. The trial aimed to compare the efficacy of Trodelvy against docetaxel, a chemotherapy drug.

According to Gilead, Trodelvy demonstrated a median overall survival of over three months more than docetaxel in about 60% of study participants with either squamous or non-squamous lung cancer. Despite this, market analysts from Jefferies noted that the observed survival benefit might not be sufficient for regulatory submission to the Federal Drug Administration (FDA).

Market Reaction and Analyst Opinions:

As of 12:42 EDT (17:42 GMT), GILD's stock had fallen by 10.7%. Market analysts at Evercore ISI suggested that the market's strong negative response might be unwarranted. They highlighted that the trial was inherently high-risk, especially after a similar drug, Trop2 ADC by AZN, failed in a comparable lung cancer study.

From a technical perspective, the analysts argued that the substantial negative market response seems unjustified. They emphasized that GILD's appeal lies in its long-term growth potential, primarily driven by its HIV treatments, not its cancer therapies.

Gilead expressed its intention to discuss the second-line study results with 603 participants with regulatory authorities. The company plans to present the data at an upcoming scientific conference. Dr. Merdad Parsey, Chief Medical Officer of Gilead, acknowledged the challenges of addressing metastatic NSCLC post-platinum-based chemotherapy, emphasizing the urgent need for safe and effective treatments.

While the market has responded sharply to Gilead's recent trial results, analysts suggest that the reaction might be exaggerated, considering the inherent risks of such clinical trials. Gilead's focus on long-term growth, particularly through its HIV treatments, remains intact despite the setback in its cancer therapy program. The company's future trajectory will be closely watched as it navigates the regulatory discussions and evaluates the next steps for Trodelvy.



About GILEAD SCIENCES, INC.


  • Ticker GILD
  • Exchange NASDAQ
  • Sector Healthcare
  • Industry Drug Manufacturers—General
  • Shares Outstandng 1,253,369,984
  • Market Cap $84.9B
  • Description
  • Gilead Sciences, Inc., a biopharmaceutical company, discovers, develops, and commercializes medicines in the areas of unmet medical need in the United States, Europe, and internationally. The company provides Biktarvy, Genvoya, Descovy, Odefsey, Truvada, Complera/ Eviplera, Stribild, and Atripla products for the treatment of HIV/AIDS; Veklury, a...
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