Gilead CEO: We Expect Remdesivir To Work On New COVID-19 Strains

Daniel O’Day, the CEO of Gilead Sciences Inc. GILD, told CNBC on Monday that the drugmaker expects the antiviral drug to be fully effective against new strains of the coronavirus. 

What Happened: O’Day appeared on CNBC’s “Squawk Box.”

Gilead “has invested a lot in remdesivir and will continue to invest in remdesivir,” he said.

Why It's Important: O’Day told CNBC that the important news is how remdesivir impacts the time COVID-19 patients spend in the hospital. 

As hospitalizations have quadrupled worldwide, one out of every two patients are receiving remdesivir, which can reduce the hospital phase by up to a week and reduce the chances of patients going on to more severe illness and dying by up to 70%, the CEO said. 

Remdesivir is an antiviral drug that was approved for COVID-19 treatment in the U.S. and is mainly used to shorten recovery time for patients. Outgoing President Donald Trump received this drug when he was diagnosed with COVID-19 in October.

The new coronavirus strains that were found in the U.K. and South Africa have been tested with Gilead’s remdesivir in a lab in California, O'Day said, adding that "it maintains its effectiveness." 

“I expect remdesivir with these variants will continue to make an impact on patients.”

GILD Stock Action: Shares of Gilead were down 0.35% at $62.82 at last check Monday. 

Photo courtesy of Gilead.