Shares of the biotech company Gilead Sciences experienced a significant drop of almost 10% in early trading following the announcement of a failed trial for their widely-used cancer treatment, Trodelvy, in lung cancer patients.
Trodelvy, which has gained approval from the Food and Drug Administration (FDA) for multiple forms of breast and urothelial cancer, is considered one of Gilead’s top-selling cancer drugs. According to FactSet, it generated $1.1 billion in revenue in 2023 and was projected to reach $2.3 billion by 2026.
However, the new data released on Monday has raised concerns about its future prospects. While Gilead is primarily known for its HIV treatments, the company has been investing heavily in developing a robust portfolio of cancer therapies.
During the Phase 3 trial, which Gilead provided details on in their statement, Trodelvy was compared to a chemotherapy drug called docetaxel. The trial involved patients with metastatic or advanced non-small cell lung cancer who had experienced progression of their illness despite prior treatments.
Although there was a slight improvement in overall survival for patients treated with Trodelvy compared to those on chemotherapy, this difference did not reach statistical significance, according to the company.
“This setback should be viewed as a blow to our expectations regarding Gilead’s pipeline,” commented Jefferies analyst Michael Yee on Monday. “It could also raise concerns among investors about Gilead’s ability to achieve significant sales in oncology, particularly if the treatment of lung cancer remains uncertain.”
If the decline in Gilead’s stock value persists until the end of Monday’s trading session, it would mark the company’s worst single-day performance since December 2014. Gilead shares had previously shown a 7.5% increase since the beginning of the year and a 5.2% rise over the past 12 months.
Trodelvy Shows Promise as a Treatment for Metastatic Non-Small Cell Lung Cancer
Trodelvy, an antibody-drug conjugate (ADC), continues to demonstrate its potential as a treatment for metastatic non-small cell lung cancer (NSCLC), according to statements made by Dr. Merdad Parsey, the chief medical officer of the pharmaceutical company responsible for its development.
During a session at J.P. Morgan’s healthcare conference, Dr. Parsey expressed his confidence in Trodelvy, specifically referring to its role in a trial named EVOKE-01. The positive outlook on Trodelvy stems from the belief that it will play a significant role in addressing NSCLC over time.
ADCs have become increasingly popular among pharmaceutical companies, leading to notable acquisitions of smaller biotechs specializing in this field. Pfizer’s acquisition of Seagen for $43 billion and Gilead’s purchase of Immunomedics for $21 billion are prime examples of this trend.
AstraZeneca is also actively involved in testing another ADC in partnership with Daiichi Sankyo for a similar indication. Although the trial results announced in the fall displayed a 25% reduction in the risk of disease progression or death compared to patients receiving docetaxel, there was no notable improvement in overall survival.
The continued success and potential of Trodelvy, alongside the ongoing efforts of other pharmaceutical companies, provide hope for patients suffering from metastatic NSCLC.
