were down almost 48 percent on Tuesday, after the company said Monday the FDA had placed its lead product candidate, RG-101 – for the treatment of hepatitis C virus infection, on clinical hold.
Following the news, Jefferies analysts reiterated a Hold and $96 price target on shares of Gilead Sciences, Inc.
, which gained about 5 percent on Tuesday. In a note issued late-Monday, the experts believe the impact the event will have on Gilead will be “limited.”
Although RG101 had revealed potential to shorten the duration of treatment for competitor oral regimens, Jefferies analysts view “HCV price compression and pt. flows as more important NT/MT risks/uncertainties for GILD.”
Having said this, the experts added they would need more details before being able to determine if RG-101 can still move forward. However, they do think “the safety track record and oral administration of Harvoni and other marketed GILD HCV products set a high bar.”