Gilead’s 24% Rally Meets HIV Growth and Pricing Risks
Second-quarter sales growth and new products support the bull case, while Medicare pricing and acquisition costs remain key concerns.
Key takeaways
- Gilead reported second-quarter sales growth of 10% year over year.
- The company raised its 2026 HIV sales growth outlook to 9% to 10%.
- Biktarvy’s negotiated Medicare price takes effect in January 2028.
- The FDA is due to decide on anito-cel on December 23.
Gilead Sciences shares are up more than 24% this year, while its second-quarter sales rose 10% year over year. At 14:06 UTC on Oct. 12, the stock traded at $151.37, up 0.13% since the previous close.
HIV sales increased 12%, led by growth in prevention medicines. Descovy sales rose 48%, and total PrEP sales doubled. Gilead raised its 2026 outlook for HIV sales growth to 9% to 10%, from 8%.
Acquisition-related accounting charges weighed on reported earnings after Gilead bought Arcellx, Tubulis and Ouro Medicines. The company expensed the value of unfinished research from those deals in the second quarter, according to the article.
The bullish case points to Gilead’s HIV prevention products and potential new medicines. The FDA accepted an application for a once-weekly oral PrEP pill, while the agency is due to decide on anito-cel, a multiple myeloma cell therapy from the Arcellx deal, on Dec. 23.
Risks include Gilead’s reliance on HIV products and a negotiated Medicare price for Biktarvy, its largest drug, taking effect in January 2028. The article also notes that cell therapy sales fell 14% amid competition, while cash declined as the company paid for acquisitions.
This article was produced with the help of AI technology. Source: Yahoo Finance
