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GILD Stock Slips as CVS Health Excludes New HIV Drug Yeztugo
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Key Takeaways
Gilead shares fell 2.2% after CVS chose not to cover its new HIV prevention drug Yeztugo.
Yeztugo, FDA-approved in June, is the first and only twice-yearly PrEP option in the U.S.
Gilead's Kite will acquire Interius BioTherapeutics for $350M, impacting EPS by $0.23-$0.25.
Shares of Gilead Sciences, Inc. ((GILD - Free Report) ) tumbled 2.2% on Aug. 21, after pharmacy benefit manager CVS Health ((CVS - Free Report) ) decided not to add the former’s new HIV prevention drug, Yeztugo (lenacapavir), to its commercial plans for now.
As per a news report by Reuters, this decision by CVS Health was based on clinical, financial and regulatory factors. The pharmacy benefit manager will not cover Yeztugo under its Affordable Care Act formularies, since its ACA preventive program follows recommendations and mandates from the U.S. Department of Health and Human Services.
Per reports, GILD is still negotiating with CVS over Yeztugo which currently carries a U.S. list price of more than $28,000 a year.
In June 2025, GILD received FDA approval for Yeztugo for pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV-1 in adults and adolescents weighing at least 35kg. Yeztugo is the first and only twice-yearly HIV PrEP option available in the United States.
The decision will likely impact Yeztugo’s uptake. On its second-quarter earnings call, GILD stated that it is on track to secure 75% insurer coverage of Yeztugo by year-end in the United States and 90% within 12 months (June 2026).
At present, there are two FDA-approved daily oral medications for PrEP — Truvada and Descovy. Both of these are sold by GILD.
This approval also represents a paradigm shift in HIV prevention and is expected to catalyze uptake among populations that have historically been underserved by existing prevention tools. As the first long-acting injectable PrEP administered just twice a year, Yeztugo addresses persistent barriers, such as challenges with daily oral PrEP, adherence, stigma and healthcare access, which have limited broader PrEP adoption.
Gilead’s shares have surged 25.7% year to date compared to the industry's growth of 4%.
Image Source: Zacks Investment Research
GILD’s Kite to Acquire Interius BioTherapeutics
On Aug. 21, Gilead announced that its wholly owned subsidiary, Kite, entered into an agreement to Interius BioTherapeutics for $350 million.
Interius BioTherapeutics is a privately held biotechnology company developing in vivo CAR therapeutics. This approach enables the generation of CAR T-cells directly within the patient’s body unlike traditional CAR T therapies that require cell harvesting, engineering and reinfusion.
This acquisition complements Kite's expertise in cell therapy with the addition of Interius' integrating in vivo platform. Kite markets two CAR T cell therapies — Yescarta and Tecartus.
Interius’ innovative, off-the-shelf yet personalized approach can be delivered via a single intravenous infusion, eliminating the need for preconditioning chemotherapy and complex cell processing.
This acquisition is expected to reduce GILD’s bottom line by approximately $0.23-$0.25.
In the past 30 days, estimates for CorMedix’s earnings per share have increased from 93 cents to $1.22 for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.65 to $2.12. Year to date, shares of CRMD have rallied 49.1%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.
In the past 30 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $6.532 to $6.55 for 2025. During the same time, earnings per share estimates for 2026 have inched up to $7.08 from $7.07. Year to date, shares of ANIP have rallied 29.4%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.
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GILD Stock Slips as CVS Health Excludes New HIV Drug Yeztugo
Key Takeaways
Shares of Gilead Sciences, Inc. ((GILD - Free Report) ) tumbled 2.2% on Aug. 21, after pharmacy benefit manager CVS Health ((CVS - Free Report) ) decided not to add the former’s new HIV prevention drug, Yeztugo (lenacapavir), to its commercial plans for now.
As per a news report by Reuters, this decision by CVS Health was based on clinical, financial and regulatory factors. The pharmacy benefit manager will not cover Yeztugo under its Affordable Care Act formularies, since its ACA preventive program follows recommendations and mandates from the U.S. Department of Health and Human Services.
Per reports, GILD is still negotiating with CVS over Yeztugo which currently carries a U.S. list price of more than $28,000 a year.
In June 2025, GILD received FDA approval for Yeztugo for pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV-1 in adults and adolescents weighing at least 35kg. Yeztugo is the first and only twice-yearly HIV PrEP option available in the United States.
The decision will likely impact Yeztugo’s uptake. On its second-quarter earnings call, GILD stated that it is on track to secure 75% insurer coverage of Yeztugo by year-end in the United States and 90% within 12 months (June 2026).
At present, there are two FDA-approved daily oral medications for PrEP — Truvada and Descovy. Both of these are sold by GILD.
This approval also represents a paradigm shift in HIV prevention and is expected to catalyze uptake among populations that have historically been underserved by existing prevention tools. As the first long-acting injectable PrEP administered just twice a year, Yeztugo addresses persistent barriers, such as challenges with daily oral PrEP, adherence, stigma and healthcare access, which have limited broader PrEP adoption.
Gilead’s shares have surged 25.7% year to date compared to the industry's growth of 4%.
Image Source: Zacks Investment Research
GILD’s Kite to Acquire Interius BioTherapeutics
On Aug. 21, Gilead announced that its wholly owned subsidiary, Kite, entered into an agreement to Interius BioTherapeutics for $350 million.
Interius BioTherapeutics is a privately held biotechnology company developing in vivo CAR therapeutics. This approach enables the generation of CAR T-cells directly within the patient’s body unlike traditional CAR T therapies that require cell harvesting, engineering and reinfusion.
This acquisition complements Kite's expertise in cell therapy with the addition of Interius' integrating in vivo platform. Kite markets two CAR T cell therapies — Yescarta and Tecartus.
Interius’ innovative, off-the-shelf yet personalized approach can be delivered via a single intravenous infusion, eliminating the need for preconditioning chemotherapy and complex cell processing.
This acquisition is expected to reduce GILD’s bottom line by approximately $0.23-$0.25.
GILD’s Zacks Rank and Stocks to Consider
Gilead presently has a Zacks Rank #3 (Hold). Some better-ranked stocks in the biotech sector are CorMedix ((CRMD - Free Report) ) and ANI Pharmaceuticals ((ANIP - Free Report) ), each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 30 days, estimates for CorMedix’s earnings per share have increased from 93 cents to $1.22 for 2025. During the same time, earnings per share estimates for 2026 have increased from $1.65 to $2.12. Year to date, shares of CRMD have rallied 49.1%.
CorMedix’s earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 34.85%.
In the past 30 days, estimates for ANI Pharmaceuticals’ earnings per share have increased from $6.532 to $6.55 for 2025. During the same time, earnings per share estimates for 2026 have inched up to $7.08 from $7.07. Year to date, shares of ANIP have rallied 29.4%.
ANIP’s earnings beat estimates in each of the trailing four quarters, the average surprise being 22.66%.