Cognizant expands AI services for Gilead Sciences

TEANECK, N.J. - Cognizant Technology Solutions (NASDAQ:CTSH) Corporation (NASDAQ: CTSH) has announced the expansion of its partnership with biopharmaceutical company Gilead Sciences (NASDAQ: NASDAQ:GILD), aiming to enhance Gilead’s customer service, employee engagement, and overall business value through advanced AI-driven solutions. Gilead, with a market capitalization of $119.13 billion and currently trading near its 52-week high, has demonstrated strong financial performance with a robust gross profit margin of 77.8%. According to InvestingPro analysis, the company maintains healthy cash flows that sufficiently cover its interest payments.

The collaboration, which builds on a decade of support for Gilead’s global IT infrastructure, is set to leverage Cognizant’s machine learning and generative AI capabilities within an agentic framework. This initiative is expected to improve operational efficiencies across Gilead’s value chain, providing significant cost savings and productivity enhancements. With annual revenue of $28.3 billion and a strong track record of dividend growth for 10 consecutive years, Gilead continues to demonstrate operational excellence. For detailed financial metrics and additional insights, investors can access the comprehensive Pro Research Report available on InvestingPro.

Joydeep Ganguly, SVP & Head of Corporate Operations and Interim CIO at Gilead, emphasized the importance of the expanded partnership in accelerating the company’s technology capabilities and driving a new level of cost leadership. The goal is to enable Gilead to continue its focus on developing and delivering medicines for critical illnesses, such as cancer and HIV.

Cognizant plans to employ its Neuro AI generative AI platform to assist Gilead in enhancing IT and business processes, with the intent to create value and transform the user experience of IT services. The solutions provided by Cognizant are custom-built to meet Gilead’s needs, aiming for greater efficiency and an improved user experience.

Surya Gummadi, EVP and President of Cognizant Americas, expressed pride in the longstanding relationship with Gilead and enthusiasm for the partnership’s new dimension. He highlighted the joint effort to transform user engagement and boost productivity, allowing Gilead to concentrate on its mission of treating life-threatening diseases.

Mohammad Haque, SVP, Global Large Deals Lead and Business Unit Head, Life Sciences at Cognizant, also mentioned the company’s commitment to providing end-to-end capabilities and life sciences domain expertise to accelerate value for Gilead. He noted the use of premier managed services frameworks and tools to enhance operational efficiencies with advanced automation.

This strategic agreement is grounded in Cognizant’s expertise in modernizing technology and reimagining processes, aimed at improving everyday life through innovation. Gilead Sciences continues to focus on advancing medicines to combat diseases like HIV, viral hepatitis, COVID-19, and cancer, operating in over 35 countries with its headquarters in Foster City, California. InvestingPro’s analysis shows Gilead maintains a "GREAT" overall financial health score, with particularly strong ratings in profitability and price momentum. Subscribers can access over 8 additional ProTips and comprehensive financial metrics for deeper analysis of Gilead’s market position and growth potential.

The information for this report is based on a press release statement.

In other recent news, Gilead Sciences has been the subject of notable developments. Morgan Stanley (NYSE:MS) upgraded Gilead’s stock rating from Equal-weight to Overweight and increased the price target to $113. This upgrade followed a reassessment of Gilead’s potential, specifically the positive developments in its pipeline, particularly Lenacapavir in HIV prevention.

Meanwhile, RBC Capital Markets adjusted its price target on Gilead’s stock from $84.00 to $83.00, maintaining a Sector Perform rating. The firm anticipates the HIV franchise to remain stable and continue to support the company’s valuation until at least the end of the decade.

Gilead also received Breakthrough Therapy Designation from the U.S. Food and Drug Administration for its drug Trodelvy, intended to treat a specific form of lung cancer. This designation was based on positive results from the Phase 2 TROPiCS-03 study.

In addition, Gilead has entered into a strategic collaboration with Terray Therapeutics to develop small molecule therapies, leveraging Terray’s AI-driven tNova drug discovery platform.

Finally, Bernstein maintained its Outperform rating and $105.00 price target for Gilead, expressing confidence in the company’s HIV treatments, particularly the potential success of Lenacapavir. These are recent developments in Gilead’s ongoing commitment to HIV treatment and prevention, as well as its potential for growth and profitability.

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