Hopes amid a potential treatment for the COVID-19Published by Terence Mahier | Source
A report said a Gilead Sciences drug called "Remdesivir" showed some effectiveness in treating the coronavirus, giving investors hope there could be a treatment solution that helps the world reopen faster 🌍
The study is anecdotal as there was no control group, a similar setup to the Chloroquine hype in France 🇫🇷
Seeking any ounce of optimism, the market is already celebrating a win, pushed by the strong sense of urgency of Trump, who outlined yesterday his plan to reopen the country 🎉
Since the end of March, the Dow has regained 26.6% after getting slammed by a strong bear market. Are we already on the upside of the V-curve?
Analysts warned that Investors should be cautious about the potential of Gilead’s drug. JPMorgan biotechnology equity analysts wrote on Thursday that “this clinical trial experience appears to represent another encouraging, albeit largely anecdotal, data point for this high-profile drug candidate.”
Furthermore, this data comes from a single trial site. The Barclays health-care equity research team wrote: “While these data are encouraging, they are uncontrolled and from a single center.” 🏥
Combined with the FOMO ("Fear Of Missing Out") of investors, this news might put an end to the bear market, ignoring the economic "ruin" that the quarantine measures will leave behind us...Or is it just a dead cat bounce?
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- Newspill Team 💊
17-Apr 09:40 (Eastern Time)
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