Gilead Sciences Inc. ($GILD) announced that it has received approval in Canada for its ODEFSEY for treating HIV-1 infection. ODEFSEY is indicated in Canada as a complete regimen for the treatment of adults infected with HIV-1 with no known mutations associated with resistance to the non-nucleoside reverse transcriptase inhibitor (NNRTI) class, tenofovir or emtricitabine, and who have HIV-1 RNA levels less than or equal to 100,000 copies per mL.
Gilead also reported that it has inked a deal with Amygdala Neurosciences Inc. for S-6637, a highly selective ALDH2 inhibitor with the potential to treat behavior and substance addictions. Amygdala plans to initiate clinical trials for the treatment of both cocaine and alcohol use disorders."
The company stock lost more than 20 percent of its value in the past 12 months. Its loss this year so far is over 2 percent. However, with new positive news, the stock is expected to bottom out and perform well over the course of next couple of months. Its new HIV drug development can be its trump card as the company will be challenging strong competitors such as GlaxiSmithKline with this new product.
Gilead stock is currently trading close to its 52 weeks low and hence offers an interesting opportunity for mid to long term investors to start a new position.