Gilead Sciences' (GILD) mid-stage trial results from its ulcerative colitis drug candidate, emvistegrast, are not expected to move the stock, RBC Capital Markets said in a note Monday.
The outcome from the small molecule drug trial is expected shortly, the note said, adding that the competitive bar is high, and prior oral efforts have not looked great.
"Focus is likely to remain on Yeztugo/HIV/anito-cel near
term, and a ph. II readout is unlikely to materially move the stock," the report said.
The note said the drug candidate has some pharmacological advantages against others and favorable results could help its immunology and inflammation segment emerge as a potential new area of long-term growth generation.
The report pointed to Eli Lilly's (LLY) recent EMERALD-2 phase 2b data that showed only modest efficacy.
RBC kept its sector perform rating with a price target of $122.
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