Global Healthcare Trends Will Expand Access To Advanced Therapies

Analysts remain constructive on Gilead Sciences, citing strong HIV franchise performance, positive FDA developments, and favorable regulatory tailwinds offsetting minor pipeline setbacks, resulting in an unchanged consensus price target of $124.37.

Analyst Commentary

• Yeztugo’s FDA approval and clean label, strong clinical data, and convenient twice-yearly dosing are seen as key drivers for Gilead’s HIV franchise growth, with analysts generally positive on long-term adoption despite initial ramp expectations being slow and some cannibalization of Descovy anticipated.
• Multiple analysts highlight the Supreme Court’s decision to continue the no-cost sharing mandate and potential HHS-mandated access as removing overhangs and boosting prospects for robust launches of Yeztugo and lenacapavir in pre-exposure prophylaxis, although the timing of national unrestricted access remains uncertain.
• Recent strong Q2 results, market-beating performance of core HIV brands (notably Biktarvy and Descovy), and incremental operating margin expansion underpin raised price targets by bullish analysts, confirming a “beat and raise” narrative.
• Recent clinical holds on GS-1720/GS-4182 HIV combination regimens are viewed as only minor setbacks for long-term HIV pipeline opportunities, with limited spillover risk to other ongoing programs including lenacapavir-based regimens.
• Recent acquisitions (e.g., Interius Bio) and partnerships reflected in price target adjustments indicate confidence in Gilead’s continued investment in next-generation cell therapy and protein degradation platforms, supporting the pipeline and future revenue diversification.

What's in the News

• CVS Health has decided not to add Gilead's new HIV prevention drug Yeztugo to its commercial or ACA drug coverage lists, citing clinical, financial, and regulatory considerations (Reuters).
• Leerink believes maximizing Yeztugo sales will likely require mandated, unrestricted access by HHS, drawing parallels to Descovy and Apretude; the firm remains positive on Gilead's recent acquisition of Interius Bio and maintains an Outperform rating (Leerink).
• The Bear Cave reports that rumors of Gilead acquiring or partnering with Pheton Holdings are unsubstantiated stock manipulation, cautioning against fraudulent M&A speculation (Bear Cave Substack).
• The expected breakthrough year for HIV treatment is at risk as the U.S. pulls funding, negatively impacting drug procurement and program continuity in Africa; Gilead is cited as a major player in the space (New York Times).
• News regarding Gildan Activewear's potential acquisition of Hanesbrands is unrelated to Gilead Sciences.

Valuation Changes

Summary of Valuation Changes for Gilead Sciences

• The Consensus Analyst Price Target remained effectively unchanged, at $124.37.
• The Future P/E for Gilead Sciences remained effectively unchanged, at 18.58x.
• The Net Profit Margin for Gilead Sciences remained effectively unchanged, at 31.01%.