Gilead Sciences, Inc. (GILD) revealed that it has been granted marketing authorization by the European Commission for Trodelvy, the company’s treatment drug for adult patients with unresectable or metastatic triple-negative breast cancer.
The cancer type, which accounts for about 15% of all breast cancers, is found in younger and premenopausal women. The five-year survival rate for this sub-type of breast cancer is 12%, compared to 28% for other breast cancer types.
The commission’s approval is based on Phase 3 ASCENT study results, which showed that Trodelvy lowered chances of death by 49% and improved median overall survival to 11.8 months, compared to 6.9 months with physician’s choice of chemotherapy. (See Gilead stock charts on TipRanks)
The company said that Trodelvy had also been approved in Australia, Canada, Great Britain, Switzerland, and the United States in metastatic TNBC. Further, Everest Medicines has submitted applications in Singapore and China for regulatory review.
The Chief Medical Officer of Gilead, Merdad Parsey (MD, PhD), said, “At Gilead, we push boundaries to deliver transformative science and novel treatment options that address urgent medical needs. We understand how difficult metastatic TNBC is to treat and we’re proud that Trodelvy can now offer a second-line treatment option with the potential to bring longer life to people living with this aggressive disease.”
Wall Street’s Take
Last week, BMO Capital analyst Evan Seigerman assigned a Buy rating to the stock and lifted the price target to $85 (20.4% upside potential) from $72.
Seigerman is optimistic about the company’s continued dominance in the HIV market.
Meanwhile, the Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 11 Buys and 4 Holds. The average Gilead price target of $79.38 implies 12.4% upside potential. Shares have gained 17.2% over the past year.