Shares Of Drugmaker Barely Higher After Study Confirms HIV Drug Is A Major Breakthrough

A new study has found that Truvada, a drug from drugmaker Gillead, is shockingly effective at reducing transmission rates of HIV.

This is potentially huge news from a health perspective, but the action in the stock should remind you of somethign: HIV isn’t a huge moneymaker. These drugs are basically given away in Africa, either through contract with some other generic maker, or they’re sold at cost.

This is well known as one of the tragedies of HIV research: the lack of profits.

Thus shareholders of Gilead aren’t being particularly rewarded by the news.


NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at