Shares of biopharmaceutical company Gilead Sciences experienced a sharp decline of more than 10% on Monday following disappointing results from a late-stage trial of its key lung cancer drug, Trodelvy. The trial did not show a significant extension of the lives of patients with a specific type of lung cancer, dealing a setback to Gilead’s ambitions in the cancer treatment space.
Trodelvy, already approved for treating certain breast and bladder cancers, is among Gilead’s top-selling cancer drugs, contributing approximately one-third of its $769 million in oncology sales during the third quarter. The phase-three study aimed to expand the application of Trodelvy, but the results fell short of meeting the trial’s success criteria, despite Gilead noting that patients with advanced non-small cell lung cancer who received Trodelvy lived longer than those on chemotherapy alone.
Gilead expressed its intention to engage in discussions with regulators to analyze the trial results and identify whether specific subsets of lung cancer patients might still benefit from Trodelvy.
The drug belongs to the antibody-drug conjugates (ADCs) category, known for delivering targeted cancer therapy to eliminate cancer cells while minimizing harm to healthy cells. This class of treatments is widely sought after in the pharmaceutical industry due to its potential for increased effectiveness and reduced side effects compared to standard chemotherapy.
While not entirely surprising to analysts, the trial outcome has raised concerns about Gilead’s standing in the oncology market. Michael Yee, an analyst at Jefferies, noted that mixed early study data and lackluster results from competing drugs might have contributed to the trial’s less-than-optimal results. The setback could impact investor confidence in Gilead’s prospects for significant sales in the oncology sector.
With this setback, Gilead’s efforts face challenges to establishing itself as a major player in the cancer treatment landscape. The company’s focus on expanding the use of Trodelvy and its discussions with regulatory authorities will be closely watched by investors and medical industry observers as Gilead navigates the evolving landscape of cancer therapeutics.
