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Investing.com - Rothschild Redburn raised its price target on Gilead Sciences (NASDAQ:GILD) to $143.00 from $136.00 on Friday, while maintaining a Buy rating on the biopharmaceutical company’s stock. Trading at $117.86, the stock has delivered an impressive 29.4% return year-to-date, and according to InvestingPro analysis, remains slightly undervalued.
The firm cited strong physician feedback on Yeztugo, Gilead’s long-acting injectable medication for HIV prevention, as the primary reason for the increased target. According to Rothschild Redburn, this HIV prevention treatment has been the key driver behind Gilead’s stock outperformance over the past year. With a market capitalization of $146.24 billion and a robust financial health score rated as "GREAT" by InvestingPro, Gilead demonstrates strong market positioning.
Rothschild Redburn analysts conducted research by consulting physicians about their experiences with the treatment. Based on this early feedback, the firm has significantly raised its forecasts for Yeztugo to levels that now exceed current market consensus.
The long-acting injectable has become an increasingly important part of Gilead’s product portfolio, with the research firm validating its belief in the treatment’s market potential through direct physician consultations.
Gilead Sciences, headquartered in Foster City, California, continues to strengthen its position in the HIV prevention and treatment market, with Yeztugo representing a significant growth opportunity according to the Rothschild Redburn analysis.
In other recent news, Gilead Sciences has announced a significant partnership with the U.S. State Department and PEPFAR to distribute lenacapavir, its injectable HIV prevention medication, to high-incidence, resource-limited countries. This collaboration aims to reach up to two million people over the next three years, with the medication provided at no profit. Additionally, Gilead has broken ground on a new Pharmaceutical Development and Manufacturing Technical Development Center at its Foster City headquarters. This facility is part of a $32 billion investment in U.S. innovation planned through 2030.
In acquisition news, Gilead’s Kite division has agreed to acquire Interius BioTherapeutics for $350 million. This acquisition will integrate Interius’s in vivo CAR therapeutic platform into Kite’s cell therapy portfolio. Meanwhile, CVS Health has decided not to cover Gilead’s new HIV prevention drug, Yeztugo, in its commercial plans. This decision was based on clinical, financial, and regulatory considerations.
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