Gilead’s latest setback has existential implications
For years, Wall Street’s enduring question for Gilead Sciences has focused on how the company might grow beyond its core business of antiviral treatments. The answer was supposed to be a focus on immunological diseases, but this week’s surprise FDA rejection has left analysts wondering what the future might hold.
As STAT’s Ed Silverman explains, Gilead has long been considered what investors call “a turnaround story,” a previously troubled company with better days ahead. But that relied on the success of filgotinib, the drug recently rejected by the FDA, which Gilead had claimed would become a competitive treatment for a host of inflammatory conditions.
Filgotinib had become something of a litmus test for Gilead CEO Daniel O’Day, who joined the company in 2019. The drug’s trouble at the FDA could damage Gilead’s investor credibility going forward, according to Wolfe Research analyst Tim Anderson.
As STAT’s Ed Silverman explains, Gilead has long been considered what investors call “a turnaround story,” a previously troubled company with better days ahead. But that relied on the success of filgotinib, the drug recently rejected by the FDA, which Gilead had claimed would become a competitive treatment for a host of inflammatory conditions.
Filgotinib had become something of a litmus test for Gilead CEO Daniel O’Day, who joined the company in 2019. The drug’s trouble at the FDA could damage Gilead’s investor credibility going forward, according to Wolfe Research analyst Tim Anderson.
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