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Biotech ETFs Gain on New Positive Data for Gilead's Remdesivir
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The coronavirus pandemic continues to spread globally as the number of infected cases rise more than 3.2 million, with the death toll at least 227,000. Moreover, the United States has witnessed more than a million coronavirus cases so far. In such a grim scenario, the latest positive early clinical trial results for Gilead Sciences’ (GILD - Free Report) experimental coronavirus drug, remdesivir, has instilled optimism among investors. The company’s shares rose 5.7% after the data release on Apr 29.
Gilead Sciences announced results from the open-label, Phase 3 SIMPLE trial studying 5-day and 10-day dosing durations of the investigational antiviral remdesivir in hospitalized COVID-19 cases with serious complications. The results reflect that at least 50% of the patients that were treated with a five-day dosage of remdesivir improved and more than half were discharged from the hospital within two weeks, per a CNBC article.
The preliminary results from a large randomized 1,063-patient trial were also released by the U.S. National Institute of Allergy and Infectious Diseases (NIAID). The results reflected that hospitalized coronavirus patients with lung complications improved 31% faster with remdesivir as against placebo, per a Reuters article. Notably, it took 11 days for half of the patients to recover with remdesivir in comparison to 15 days required by patients in the placebo group, per the report.
Top infectious disease specialist, Dr. Anthony Fauci, has commented that "the data shows that remdesivir has a clear cut, significant positive effect in diminishing the time to recovery," per a Reuters article.
Remdesivir Updates So Far
According to a STAT report, treatment with remdesivir resulted in fast recoveries in fever and respiratory symptoms in COVID-19 patients in a closely-watched study in a Chicago hospital. Most of these patients were discharged in less than a week. The University of Chicago Medicine enrolled 125 COVID-19 patients under two phase III studies by Gilead Sciences. Of these, 113 had severe conditions. All patients were treated with daily infusions of remdesivir. While two patients died, most of the others were discharged. Gilead Sciences has also increased its enrolment target by 3,600 for the trial testing of its experimental drug remdesivir in severe coronavirus-infected patients.
Notably, another report supporting remdesivir’s role in treating COVID-19 was published in the New England Journal of Medicine. The test results came from tracking 53 people in the United States, Europe and Canada, who required respiratory support, per a Bloomberg article. The patients were provided with remdesivir for up to 10 days on a compassionate-use basis. The results reflected that over a period of 18 days, 68% of the patients improved, including 17 of the 30 patients on mechanical ventilation not requiring the breathing device. However, compassionate use data have limitations and multiple phase III studies are ongoing to evaluate the safety and effectiveness of remdesivir.
Notably, Gilead Sciences is presently conducting two phase III studies on remdesivir, the SIMPLE studies, in countries with a higher prevalence of COVID-19.
ETFs to Gain
The race to introduce vaccine and treatment for coronavirus is opening up opportunities, making the biotech sector a prospective space for investments. Therefore, we discuss a few ETFs that provide exposure to the biotech sector:
VanEck Vectors Biotech ETF (BBH - Free Report) — up 0.4% since Gilead Sciences’ data release
The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 25 securities in its basket. Gilead Sciences holds the second position with 9.19% weight. Its AUM is $394.2 million and it has an expense ratio of 0.35%.
This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. It comprises 210 holdings, with Gilead Sciences occupying the top spot with 8.71% exposure. It has AUM of $8.03 billion and charges a fee of 47 basis points a year (read: ETF Strategies to Play the Rising Virus-Induced Volatility).
The fund tracks the the Dynamic Biotech & Genome Intellidex Index. It holds about 30 securities in its basket, with Gilead Sciences occupying the fifth spot along with 5.1% weight in the fund. Its AUM is around $224.8 million and expense ratio is 0.57% (read: A Guide to Biotech ETF Investing).
The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It holds about 122 securities in its basket. Gilead Sciences occupies the fifth spot with 2.21% weight. It has AUM of $4.09 billion and an expense ratio of 0.35% (read: 5 Low-Cost Top-Ranked ETFs to Tap at Discounted Prices).
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Biotech ETFs Gain on New Positive Data for Gilead's Remdesivir
The coronavirus pandemic continues to spread globally as the number of infected cases rise more than 3.2 million, with the death toll at least 227,000. Moreover, the United States has witnessed more than a million coronavirus cases so far. In such a grim scenario, the latest positive early clinical trial results for Gilead Sciences’ (GILD - Free Report) experimental coronavirus drug, remdesivir, has instilled optimism among investors. The company’s shares rose 5.7% after the data release on Apr 29.
Gilead Sciences announced results from the open-label, Phase 3 SIMPLE trial studying 5-day and 10-day dosing durations of the investigational antiviral remdesivir in hospitalized COVID-19 cases with serious complications. The results reflect that at least 50% of the patients that were treated with a five-day dosage of remdesivir improved and more than half were discharged from the hospital within two weeks, per a CNBC article.
The preliminary results from a large randomized 1,063-patient trial were also released by the U.S. National Institute of Allergy and Infectious Diseases (NIAID). The results reflected that hospitalized coronavirus patients with lung complications improved 31% faster with remdesivir as against placebo, per a Reuters article. Notably, it took 11 days for half of the patients to recover with remdesivir in comparison to 15 days required by patients in the placebo group, per the report.
Top infectious disease specialist, Dr. Anthony Fauci, has commented that "the data shows that remdesivir has a clear cut, significant positive effect in diminishing the time to recovery," per a Reuters article.
Remdesivir Updates So Far
According to a STAT report, treatment with remdesivir resulted in fast recoveries in fever and respiratory symptoms in COVID-19 patients in a closely-watched study in a Chicago hospital. Most of these patients were discharged in less than a week. The University of Chicago Medicine enrolled 125 COVID-19 patients under two phase III studies by Gilead Sciences. Of these, 113 had severe conditions. All patients were treated with daily infusions of remdesivir. While two patients died, most of the others were discharged. Gilead Sciences has also increased its enrolment target by 3,600 for the trial testing of its experimental drug remdesivir in severe coronavirus-infected patients.
Notably, another report supporting remdesivir’s role in treating COVID-19 was published in the New England Journal of Medicine. The test results came from tracking 53 people in the United States, Europe and Canada, who required respiratory support, per a Bloomberg article. The patients were provided with remdesivir for up to 10 days on a compassionate-use basis. The results reflected that over a period of 18 days, 68% of the patients improved, including 17 of the 30 patients on mechanical ventilation not requiring the breathing device. However, compassionate use data have limitations and multiple phase III studies are ongoing to evaluate the safety and effectiveness of remdesivir.
Notably, Gilead Sciences is presently conducting two phase III studies on remdesivir, the SIMPLE studies, in countries with a higher prevalence of COVID-19.
ETFs to Gain
The race to introduce vaccine and treatment for coronavirus is opening up opportunities, making the biotech sector a prospective space for investments. Therefore, we discuss a few ETFs that provide exposure to the biotech sector:
VanEck Vectors Biotech ETF (BBH - Free Report) — up 0.4% since Gilead Sciences’ data release
The underlying MVIS US Listed Biotech 25 Index tracks the overall performance of companies involved in the development and production, marketing and sales of drugs based on genetic analysis and diagnostic equipment. It holds about 25 securities in its basket. Gilead Sciences holds the second position with 9.19% weight. Its AUM is $394.2 million and it has an expense ratio of 0.35%.
iShares Nasdaq Biotechnology ETF (IBB - Free Report) — up 0.8%
This fund seeks to provide exposure to U.S. biotechnology and pharmaceutical stocks and tracks the Nasdaq Biotechnology Index. It comprises 210 holdings, with Gilead Sciences occupying the top spot with 8.71% exposure. It has AUM of $8.03 billion and charges a fee of 47 basis points a year (read: ETF Strategies to Play the Rising Virus-Induced Volatility).
Invesco Dynamic Biotechnology & Genome ETF (PBE - Free Report) — up 1.5%
The fund tracks the the Dynamic Biotech & Genome Intellidex Index. It holds about 30 securities in its basket, with Gilead Sciences occupying the fifth spot along with 5.1% weight in the fund. Its AUM is around $224.8 million and expense ratio is 0.57% (read: A Guide to Biotech ETF Investing).
SPDR S&P Biotech ETF (XBI - Free Report) — up 0.6%
The fund seeks daily investment results, before fees and expenses, which match the S&P Biotechnology Select Industry Index. It holds about 122 securities in its basket. Gilead Sciences occupies the fifth spot with 2.21% weight. It has AUM of $4.09 billion and an expense ratio of 0.35% (read: 5 Low-Cost Top-Ranked ETFs to Tap at Discounted Prices).
Want key ETF info delivered straight to your inbox?
Zacks’ free Fund Newsletter will brief you on top news and analysis, as well as top-performing ETFs, each week. Get it free >>