Gilead needs something to look forward to

Yesterday’s news that a Gilead Sciences drug called selonsertib yet again failed to treat the liver disease NASH was not a surprise. The prior disappointment was pretty decisive, and while the latest results were worse — patients in the trial did slightly better on placebo — pretty much everyone had written the treatment off anyhow.

But the end of selonsertib serves to underline an uncomfortable truth for Gilead: There’s not a whole lot else going on in 2019.

The company might have some mid-stage data on NASH combination therapies by the end of the year, but nothing that will get investors terribly excited.

Instead, the narrative will be a familiar one: Gilead’s sales will continue to erode, management will face questions about what it’s going to buy and when, and the stock price will sink in the resulting inertia.