For Gilead, Its Coronavirus Treatment Is Icing on the Cake

Gilead Sciences (NASDAQ:GILD) created the antiviral drug Remdesivir as a possible treatment for Ebola and the Marburg virus, and it's since been found to be potentially effective in treating COVID-19, the disease caused by the novel coronavirus. Some investors think this could mean significant revenue in the near term for Gilead, and the stock is up 10% so far this year.

But despite the potential short-term benefit from Remdesivir, I believe investors interested in Gilead should focus on three factors that could contribute to sustainable long-term shareholder returns: its strong cash position, its continued development of external business, and its ongoing progress in moving its drug candidates toward approval and launch.