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Futures Up on Coronavirus Treatment Data

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Stock market futures are off to the races this morning, with the Dow in the green as much as 700 points in today’s pre-market, with the Nasdaq +150 and the S&P 500 +70. A three-step plan from the White House regarding reopening the U.S. economy in stages, as well as early positive results from a phase-3 trial in treating the COVID-19 coronavirus, have paved the way for market bulls to run.

The three-step plan, announced by President Trump last night, encourages stay-at-home measures and social distancing whenever possible, but starts with opening some businesses at lesser risk, then moves to opening schools and companies in states that have demonstrated no rebound in COVID-19 cases, and finally returning nursing home visits and bars and restaurants re-opening. What this plan does not include, however, are plans for testing people for having contracted the coronavirus.

Enter remsdesivir, a daily infusion treatment from Gilead Sciences (GILD - Free Report)  that has so far shown positive results in a phase-3 study at the University of Chicago Medicine. The treatment looks to have had some success in immediately lowering fevers in many coronavirus patients, and in some cases has led to shorter times on ventilators for the most serious patients. Of 125 patients in the U of C trial, 113 were serious and only two patients perished while most were discharged from care within a week. Shares of GILD are up 10% this morning on the news.

The caveats for the viability of this treatment are several, however: for one, there was no Control, or placebo, group involved in the study. The U of C results are also just from one isolated study; more than 1600 patients in 169 facilities the world over are currently testing remsdesivir for the treatment of COVID-19. Leadership at Gilead has said, “We look forward to data from ongoing studies.” Also, it’s important to recognize this treatment would do nothing to stop the spread of the coronavirus; its function would serve to alleviate symptoms in COVID-19, especially among the most serious patients.


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