Gilead Sciences Inc. (NASDAQ: GILD) shares moved sharply higher on Monday after the company announced that it is currently working with China to develop an effective treatment for the coronavirus. Essentially, the firm believes that remdesivir (previously developed to treat Ebola) could prove successful in combating the coronavirus.

Gilead noted that it is setting up a randomized, controlled trial in China as part of its plans. In the past, remdesivir has shown in vitro and in vivo activity in animal models against the viral pathogens Middle East respiratory syndrome (MERS) and severe acute respiratory syndrome (SARS), both of which are also coronaviruses.

On Friday, it was reported that Chinese officials reached an agreement with Gilead to test remdesivir in patients with the coronavirus. Separately, the New England Journal of Medicine reported that a man infected with the coronavirus in Washington state was given remdesivir and his condition began to improve the following day.

There have been roughly 17,000 confirmed infections and at least 360 deaths stemming from an outbreak in Wuhan. Infections have been reported in East Asia, with Japan and Thailand leading the count. A couple of European countries have reported infections, and there have been cases in the United States and Canada as well.

Gilead joins the growing list of biopharma companies that are joining the fight against the new coronavirus. Some of these firms have seen their share prices triple since the beginning of January.

Gilead Sciences stock was up about 6% at $67.24 early Monday, in a 52-week range of $60.89 to $70.26. The share price still is down almost 6% year over year. The consensus price target is $76.39.

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