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Investing.com - RBC Capital maintained its Sector Perform rating and $100.00 price target on Gilead Sciences (NASDAQ:GILD), a prominent player in the biotechnology industry with $28.9 billion in annual revenue, after one of the company’s experimental HIV treatments was terminated in early testing. According to InvestingPro data, the company maintains a "GREAT" financial health score, suggesting strong operational fundamentals despite development challenges.
According to updated clinical trial records, Gilead’s phase I study testing its next-generation longer-acting injectable integrase inhibitor ’1219 has been terminated after enrolling only 4 of the planned 30 participants. The drug was one of two longer-acting injectable integrase inhibitors recently showcased at the company’s R&D day in late 2024 with potential for twice-yearly subcutaneous administration.
While the specific reason for ’1219’s discontinuation remains unknown, RBC noted that an earlier similar compound (’6212) was discontinued due to injection site reactions, suggesting ’1219 may have encountered similar challenges. The phase I study for Gilead’s other long-acting integrase inhibitor ’3242 appears to remain ongoing.
This termination follows other recent setbacks in Gilead’s HIV pipeline, including a clinical hold on the company’s weekly oral program ’1720/’4182, discontinuation of ’6212, and toxicity issues with its Merck-partnered islatravir compound.
RBC Capital highlighted that recent settlements with generic drug manufacturers have extended potential Biktarvy generic entry by over two years, providing Gilead additional time to develop next-generation HIV therapies despite these development challenges.
In other recent news, Gilead Sciences is set to present significant findings at the European Society for Medical Oncology 2025 Congress. The company will unveil late-breaking data from the Phase 3 ASCENT-03 study, which highlights Trodelvy’s effectiveness as a first-line treatment for metastatic triple-negative breast cancer. The study achieved its primary endpoint, showing a notable improvement in progression-free survival compared to chemotherapy. Meanwhile, RBC Capital has increased its price target for Gilead Sciences to $100, citing the promising early launch of Yeztugo, which may surpass consensus revenue expectations. Furthermore, Bernstein has reiterated an Outperform rating on Gilead, following the company’s settlement of lawsuits with three generic manufacturers, extending market exclusivity for its HIV treatment Biktarvy to April 2036. Needham also maintained a Buy rating, emphasizing the potential of Gilead’s inflammation pipeline for long-term growth. These recent developments underscore Gilead’s strategic efforts to strengthen its position in the pharmaceutical industry.
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