Gilead Sciences Shares Downgraded at BMO and Wells Fargo - (TheStreet via NewsPoints Desk)

  • BMO Capital and Wells Fargo analysts downgraded Gilead Sciences, saying the company is fully valued amid market enthusiasm for its COVID-19 drug candidate remdesivir, reported TheStreet.

  • Matthew Luchini of BMO Capital finds the latest anecdotal updates for the drug encouraging, but the stock no longer shines on a risk/reward basis, "given continued uncertainty around the remdesivir commercial opportunity."

  • Meanwhile, Wells Fargo's Jim Birchenough said he is still optimistic about remdesivir and sees it as an important part of a potential economic recovery.

  • However, the amount of revenue the drug will contribute to Gilead is unclear, as it initially will likely sell the medication at or below cost, Birchenough said, and the peak opportunity for remdesivir already is reflected in the stock price.

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