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Gilead Shares Rise after US Authorities Approves Remdesivir as COVID-19 Drug

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Shares of Gilead Sciences jumped 6 percent on Friday morning after United States authorities approved its antiviral drug remdesivir as the treatment for the COVID-19 virus in the country.

Shares of Gilead Sciences jumped 6 percent on Friday morning after United States authorities approved its antiviral drug remdesivir as the treatment for the COVID-19 virus in the country.

The drug has been available under an US Food and Drug Administration emergency use authorization since May, after a study led by the US National Institutes of Health showed it reduced hospital stays by five days. Piper Sandler analyst Tyler Van Buren told CNN Business that given intravenously, the Remdesivir could generate over $1 billion in sales during the second half of the year at the current case rate.

The US health regulator’s approval on Thursday for its use in hospitalized patients came despite the World Health Organization last week saying that the Remdesivir didn’t have a substantial effect on patients’ length of hospital stay or chances of survival in a global trial.

Van Buren also said that the FDA’s backing signals its confidence in Gilead’s U.S.-based study results, which showed the drug was able to cut time to recovery in patients.