Positive Lenacapavir HIV Data And Governance Shift Might Change The Case For Investing In Gilead (GILD)

• Gilead Sciences recently reported that its Phase 3 ARTISTRY-2 trial showed a once-daily bictegravir/lenacapavir pill matched Biktarvy in maintaining HIV viral suppression at Week 48 with no new safety concerns.
• Alongside these lenacapavir data, the promotion of long-time Gilead lawyer Keeley Wettan to Executive Vice President, General Counsel, Legal & Compliance underscores how central this medicine has become to the company’s portfolio and governance priorities.
• We’ll now explore how these positive Phase 3 results for the bictegravir/lenacapavir regimen may reshape Gilead’s HIV-led investment narrative.

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Gilead Sciences Investment Narrative Recap

To own Gilead, you generally need to believe its HIV franchise can keep generating strong cash flows while newer drugs like lenacapavir and Trodelvy gradually broaden the base. The ARTISTRY 2 data support that HIV pillar by showing a once daily bictegravir lenacapavir pill maintained viral suppression versus Biktarvy, which may reinforce the near term HIV catalyst story, but does not remove core risks around pricing pressure and long term dependence on HIV earnings.

Among recent developments, the promotion of Keeley Wettan to Executive Vice President, General Counsel, Legal & Compliance stands out in the context of lenacapavir’s growing importance. Her long involvement with Gilead’s HIV launches, including lenacapavir, ties the legal and compliance organization more tightly to one of the company’s key future drivers, at a time when policy risk, reimbursement, and complex global access discussions are central to how those HIV catalysts ultimately play out.

Yet investors should also be aware that growing pricing pressure on HIV drugs could one day weigh more heavily on the very cash flows that support...

Read the full narrative on Gilead Sciences (it's free!)

Gilead Sciences' narrative projects $32.3 billion revenue and $10.0 billion earnings by 2028. This requires 3.8% yearly revenue growth and a roughly $3.7 billion earnings increase from $6.3 billion today.

Uncover how Gilead Sciences' forecasts yield a $130.63 fair value, a 8% upside to its current price.

Exploring Other Perspectives

Some analysts were already assuming revenue could reach about US$33.9 billion and earnings US$10.8 billion by 2028, which is far more optimistic than views focused on pricing pressure and execution risk. This new bictegravir lenacapavir data may strengthen that bull case or challenge it if competition and reimbursement trends evolve differently than expected.

Explore 11 other fair value estimates on Gilead Sciences - why the stock might be worth over 2x more than the current price!

Build Your Own Gilead Sciences Narrative

Disagree with existing narratives? Create your own in under 3 minutes - extraordinary investment returns rarely come from following the herd.

• A great starting point for your Gilead Sciences research is our analysis highlighting 5 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Gilead Sciences research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Gilead Sciences' overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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