Gilead's anti-viral expertise will stand it well

There is far more to biotech giant Gilead Sciences than its potential treatment for Covid-19; it has expertise in anti-virals against a wide range of the world’s dangerous diseases.

Very few stocks have gained a fifth this year. US biotechnology group Gilead Sciences (Nasdaq: GILD) is one of them. The bounce is due partly to the hope that its antiviral treatment Remdesivir will combat Covid-19. This antiviral proved effective in animal studies for treating previous viruses Ebola, Sars and Mers. It is now in two phase-III clinical trials (the final stage of clinical testing, before a drug is submitted to regulators for approval) to treat Covid-19 coronavirus in humans.

This demonstrates Gilead’s expertise in anti-virals against a wide range of the world’s dangerous diseases. However, even if the drug is approved, it might not give Gilead a long-term financial boost if the Covid-19 pandemic peaks (as Chinese cases seem to be doing) and then fades (as Sars did), or after an effective vaccine is developed.

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Dr Mike Tubbs

Highly qualified (BSc PhD CPhys FInstP MIoD) expert in R&D management, business improvement and investment analysis, Dr Mike Tubbs worked for decades on the 'inside' of corporate giants such as Xerox, Battelle and Lucas. Working in the research and development departments, he learnt what became the key to his investing; knowledge which gave him a unique perspective on the stock markets.

Dr Tubbs went on to create the R&D Scorecard which was presented annually to the Department of Trade & Industry and the European Commission. It was a guide for European businesses on how to improve prospects using correctly applied research and development. He has been a contributor to MoneyWeek for many years, with a particular focus on R&D-driven growth companies.