From CNBC:

Gilead’s stock drops 10% as a key lung cancer drug fails to significantly extend patient lives in late-stage trial. Trodelvy, one of Gilead’s top-selling cancer drugs, generated $769 million in oncology sales during the third quarter. Although the drug showed some positive results, it did not meet the trial’s success bar.

Despite success in treating certain types of cancers, Trodelvy’s phase-three study did not meet the standard for success for patients with advanced or metastatic non-small cell lung cancer. Gilead plans to discuss the results with regulators and explore whether certain lung cancer patients may still benefit from the drug.

Trodelvy, an antibody-drug conjugate, is designed to specifically target and kill cancer cells while minimizing damage to healthy ones. This class of cancer treatments, ADCs, is in high demand in the pharmaceutical industry, with major drugmakers pursuing deals to acquire or co-develop them.

Jefferies analyst Michael Yee believes Gilead’s trial results were not entirely surprising, given mixed data from early studies and lackluster data for competing drugs. Yee also notes that the trial results may shake investor confidence in Gilead’s potential for significant oncology sales.



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