Biotech
Tuesday, January 23rd, 2024 6:40 pm EDT
Key Points
- Trodelvy Trial Results Impact Gilead Shares: Gilead Sciences experienced a notable drop in its stock value by over 10% as its prominent cancer drug, Trodelvy, failed to significantly prolong the lives of patients with a specific form of lung cancer in a late-stage trial. The disappointing results have implications for Gilead’s ambitions to establish itself as a major player in the field of cancer treatment.
- Trodelvy Significance in Gilead’s Oncology Sales: Trodelvy holds significance for Gilead as one of its best-selling cancer drugs, contributing approximately one-third of the company’s $769 million in oncology sales during the third quarter. The drug, already approved for treating certain breast and bladder cancers, represents a key component of Gilead’s oncology portfolio.
- Phase-Three Study and ADC Class: The phase-three study aimed to expand the applications of Trodelvy, particularly in treating advanced or metastatic non-small cell lung cancer. While patients who received Trodelvy showed longer survival rates compared to those on chemotherapy alone, the results did not meet the trial’s success criteria. Trodelvy belongs to the class of antibody-drug conjugates (ADCs), a highly sought-after category in the pharmaceutical industry for delivering targeted cancer therapy, minimizing damage to healthy cells. Despite the setback, Gilead plans to discuss the results with regulators and explore potential benefits for specific subsets of lung cancer patients. Jefferies analyst Michael Yee expressed that the trial outcomes were not entirely surprising based on mixed early-study data and lackluster results for competing drugs, potentially impacting investor confidence in Gilead’s oncology sales prospects.
Gilead Sciences faced a significant setback as its key cancer drug, Trodelvy, did not show a significant extension in the lives of patients with a specific type of lung cancer in a late-stage trial. Following the disappointing results, Gilead’s shares plunged over 10% on Monday. Trodelvy is a crucial component of Gilead’s efforts to establish a strong presence in the cancer treatment space, contributing about a third of its $769 million in oncology sales during the third quarter. While the drug demonstrated longer survival rates for patients with advanced non-small cell lung cancer compared to those receiving chemotherapy alone, the results fell short of the trial’s success criteria. Gilead plans to engage with regulators to discuss the findings and explore whether specific subsets of lung cancer patients may still benefit from Trodelvy. The drug, classified as an antibody-drug conjugate (ADC), represents a sought-after treatment approach that selectively targets and kills cancer cells, minimizing damage to healthy cells. The trial results, deemed not entirely surprising by analysts, may impact investor confidence in Gilead’s prospects for significant oncology sales. Jefferies analyst Michael Yee noted that the mixed data from early studies and lackluster results for competing drugs might dent confidence in Gilead’s oncology sales potential.
For the full original article on CNBC, please click here: https://www.cnbc.com/2024/01/22/gilead-stock-falls-after-disappointing-lung-cancer-study-results.html
