American biotech company Gilead Sciences, has announced that its new experimental drug, known as remdesivir, has been proven effective against the novel coronavirus according to a study by the US government.
The drug is the first treatment for the coronavirus to pass the study conducted by the National Institutes of Health.
The study, according to Biotech company Gilead Sciences, tested the effectiveness of the drug compared to normal care in 800 coronavirus patients around the world and measured the differences in recovery time.
It said that remdesivir was developed to combat other diseases which are caused by similar viruses such as SARS and MERS.
According to the company, the drug has been closely watched by healthcare professionals as a possible means to mitigate the coronavirus crisis.
The study could pave the way for the US Food and Drug Administration to fast-track an emergency approval of remdesivir.
Gilead Sciences shares were said to have risen by 5.7 percent in response to the announcement of the study while the S&P 500 rose by 2.4 percent.
However, so far, no country has currently approved the use of any drug for the cure of coronavirus.