Gilead Stock Rises on COVID-19 Treatment Price

Analysts are divided on GILD

Deputy Editor
Jun 29, 2020 at 10:22 AM
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Gilead Sciences, Inc. (NASDAQ:GILD) announced pricing for its coronavirus treatment remdesivir. The drugmaker said it will sell remdesivir to the governments of developed countries for $390 per vial, while the price for private insurance companies in the U.S. will be $520 per vial -- meaning lower prices for government programs like Medicare versus a higher price for privately insured patients. Typically, six vials of remdesivir are used per five-day treatment, meaning it will cost a total of $2,340 for one course. Currently, the shares of GILD are up 1.6% to trade at $75.76.

Longer-term, GILD now sports a year-over-year lead of 11.2%. The equity has had a volatile run on the charts, since May, consolidating between the $72-$79 levels, with its 120-day moving average sitting just below to contain any sharp pullbacks.

Digging deeper, GILD's Schaeffer's Volatility Index (SVI) of 36% sits in the low 22nd annual percentile of all other readings from the past year, implying that options can be had for a bargain right now. Plus, the equity's Schaeffer's Volatility Scorecard (SVS) sits at an extremely low 5, meaning Gilead stock has failed to exceed option traders' volatility expectations during the past year.  

Analysts, meanwhile, are divided regarding GILD. Of the 21 in coverage, seven call it a "buy" or better. Meanwhile, 13 call it a "hold," and just one says its a "strong sell." Meanwhile, the 12-month consensus price target of $80.58 is an 8.1% premium to current levels.

 

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