Gilead tanks 9% on report its coronavirus drug doesn't help patients

• Gilead stock plunged as much as 9% on Thursday after STAT News reported its experimental coronavirus drug remdesivir failed to improve patient conditions in a clinical trial.
• A summary of the trial's results was mistakenly uploaded to the WHO's website, STAT reported.
• The report contained "inappropriate characterizations of the study," Gilead said in a statement, adding that low enrollment in the trial left it unable to create "statistically meaningful conclusions."
• Trading of Gilead shares was temporarily halted soon after the report.
• Watch Gilead trade live here.

Biotech firm Gilead Sciences slid as much as 9% on Thursday after STAT News reported trials of its experimental COVID-19 treatment showed no benefit for coronavirus patients.

A summary of the trial's results was accidentally uploaded to the WHO's website on Thursday, STAT reported. The data from the study conducted in China suggested Gilead's remdesivir compound showed "potential benefit" in treating coronavirus, Gilead said in a statement.

The report revealed the drug failed to accelerate improvement in patients or keep them from dying, STAT said. Trading of Gilead shares was temporarily halted soon after the report's release as investors dumped the stock.

"We believe the post included inappropriate characterizations of the study. Importantly, because this study was terminated early due to low enrollment, it was underpowered to enable statistically meaningful conclusions," Gilead said in a statement, adding that low enrollment in the study led to its premature termination.

Read more: The best small-company stock-picker of the last 5 years tells us what he added to his portfolio after the market crashed — and shares his 3 favorite investments for the next decade

"In response to WHO asking for information and studies to be shared early, a draft document was provided by the authors to WHO and inadvertently posted on the website and taken down as soon as the mistake was noticed," WHO said in a statement. "The manuscript is undergoing peer review and we are waiting for a final version before WHO comments."

Gilead is conducting several Phase 3 trials of remdesivir around the world to determine whether the drug can be the first in slowing the coronavirus pandemic. The company's stock jumped nearly 10% on April 17 after STAT News reported that a Chicago trial showed promise for remdesivir's ability to combat COVID-19.

News of the Chicago study lifted the entire stock market the same day as investors cheered the potential cure.

Read more: Tim Bratz went from flipping $14,000 houses to a 3,472-unit portfolio worth $275 million. Here's the 'amazing' investment strategy he employs to build his long-term wealth.

Remdesivir was initially developed to combat Ebola. The drug showed positive signs of treating that virus, but it hasn't yet been approved.

Gilead traded at $76.11 per share as of 1:30 p.m. ET Thursday, up roughly 19% year-to-date.

Now read more markets coverage from Markets Insider and Business Insider:

US stocks climb as traders weigh unemployment filings and an oil-market rebound

A Harvard medical professor is now a billionaire after his early stake in Moderna soared 17,000%

JPMorgan is backing a startup that solves cash-flow headaches for small businesses. Here's how it works.

Read the original article on Business Insider