Why Did Gilead Sciences and Range Resources Fall?
Gilead Sciences (GILD), which is a US biopharmaceutical company that discovers, develops, and commercializes drugs, was one of the S&P 500’s top losers on September 28, 2017.
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Gilead Sciences started this week on a positive note but lost momentum as the week progressed. The stock started to lose strength after Forbes reported that the Ninth Circuit Court of Appeals reopened the 2015 case on sourcing for Gilead Sciences’ HIV drugs. The suit, which was dismissed by a district-level court in 2015, was filed by former employees. It focused on the company’s false claims regarding the source and quality of ingredients of its HIV drugs. The reports about the case’s rival dented the market sentiment and pushed the stock lower on Thursday. On the other hand, Gilead Sciences reported that its COO, Kevin Young, will retire in 2018.
On September 28, Gilead Sciences fell 3.5% and closed the day at 80.91—the lowest close in a month. On the other hand, the Dow Jones Pharmaceuticals & Biotechnology (DJUSPN) rose 0.11%.
Range Resources, which is a petroleum and natural gas exploration and production company, was one of the S&P 500’s top losers on Thursday. After rising for four consecutive trading days amid strength in the energy sector, Range Resources pulled back on September 28. The stock lost strength after the release of a report by Moody’s about US exploration and production companies. According to the report, even though most of the companies in the exploration and production space have been profitable in 2017, their investments will only pay off in the long term when oil stays consistently above $50 per barrel.
On September 28, Range Resources fell 3.4% and closed the day at $19.72. The Dow Jones Exploration & Production Index (DJUSOS) fell 0.3%.