Problems don’t stop hitting Gilead Sciences, Inc. (NASDAQ:GILD). Earlier, it had to halt as many as six trial studies amid quality concerns, and now it’s facing problems in the senior management team. As per the reports, the former Genentech Scientist, Philippe Bishop, who was leading company’s cancer drug pipeline, has resigned from his post with immediate effect.
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Not long ago, Gilead Sciences was being covered by major dailies for wrong reasons. It had to stop six of its ongoing studies, including the one on Zydelig – blood cancer drug, amid growing concerns of deaths and side-effects. The timing of these two events has raised questions, which Gilead Sciences may find difficult to answer. Although it has claimed that both of these incidents (trial halt and the resignation of the lead scientists) aren’t related to each other, experts argue that these events have affected Gilead’s direction in cancer drugs.
If taken into consideration large-cap biotech companies, Gilead Sciences has reported worst numbers in 2016. Since the beginning of the year, it has gone down 11%, which is certainly the worst performance by any large-cap biotech company in first three months of 2016. Even though things haven’t gone its way lately, the sales numbers of hepatitis C drug have already topped the list. With Gilead Sciences’ uncertain future and strong present sales, investors are finding it difficult to take a stand at this moment.
Cancer drugs are undoubtedly the best bet for the company as of now; however, the negative results Zydelig trial have given birth to difficulties Gilead Sciences might face in the coming months. When reporters asked about the sudden resignation of Bishop, company’s Chief Scientific Officer, Norbert Bischofberger, came ahead and said that the way things were shaping, his resignation was the best option for Gilead Sciences.
It will be great to see how Gilead Sciences bounces back this time and gets back its lost-glory.