Firms remain upbeat on Gilead after hepatitis C treatment fails in study

After Gilead (GILD) reported that the combination of its GS-7977 and RBV drugs had failed to cure a majority of the most difficult to treat hepatitis C genotype 1 patients enrolled in a study, a number of research firms remained upbeat on Gilead. In a note to investors, Citigroup said that the trial results will force all companies to treat patients in this category with an additional antiviral drug. The firm recommends buying Gilead's stock at current levels, since all companies will face the same hurdles and Gilead already has another drug that could be added to the treatment regiment. Citi still expects Gilead to be the first to market with a highly effective, all oral treatment for hepatitis C genotype 1 patients. Meanwhile, Morgan Stanley is still optimistic that the potential efficacy of Gilead's 7977 as a treatment for HCV will be validated and it maintains an Overweight rating on the stock. In mid-morning trading, Gilead sank $8.17, or 14.90%, to $46.65. Several companies that make competing treatments for hepatitis C genotype 1 patients climbed, with Achillion (ACHN) gaining 20.34% to $10.53, Vertex (VRTX) advancing 6.64% to $39.98, and Idenix (IDIX) gaining 6.46% to $12.20.