Gilead Sciences enters drug agreement with Tibotec Pharmaceuticals

Posted Jul 17th 2009 12:20PM by Mark Fightmaster
Filed under: Gilead Sciences (GILD)

Yesterday, Gilead Sciences (NASDAQ: GILD) announced that it entered a license and collaboration agreement with Tibotec Pharmaceuticals. The two firms will combine to develop and commercialize a new once-daily, fixed-dose treatment for HIV. GILD's CEO John Martin noted, "Gilead and Tibotec share a strong focus on bringing safe and effective treatment options to people living with HIV/AIDS."

If the collaboration is approved, GILD will assume the lead in manufacturing, registration, distribution, and commercialization of a fixed-dose combination of Truvada and rilpivirine. GILD will not be responsible for the commercialization of this combination in the developing world and Japan, which will be handled by Tibotec. The two companies will work toward an agreement to market the combination in the developing world.

Technically, GILD is is a pretty solid performer. Yes, the stock has pulled back of late, but it has followed an ascending pattern for the majority of its lifespan. The stock is currently consolidating along the $45 level as it waits for its 50-month moving average to ascend into the region. Since last September, the shares have trended sideways along with their 10- and 20-month moving averages. While the equity is currently north of these two trendlines, it may take the power of the 50-month moving average to provide a jumpstart.

Tags: AIDS, AIDS treatment, AidsTreatment, gild, gilead sciences, GileadSciences, HIV, inthenews, pharmaceuticals, Tibotec