Biotech investors tend to focus on small-cap companies in search of the next big breakthrough. Still, one established player is quietly strengthening its pipeline in ways that the market has yet to fully recognize.
Gilead Sciences (GILD), valued at $147 billion, is known for its leadership in antiviral therapies, particularly its HIV franchise. However, the company is now focused on oncology innovation and next-generation cell therapy, which have long-term growth potential that the market may be overlooking.
Gilead stock has surged 26.9% year-to-date, compared to the broader market gain of 8.5%. Let’s find out if Gilead stock is a buy now.
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Gilead is often seen as relying on COVID-19-related revenues from Veklury (remdesivir). However, during the second quarter, the company displayed the strength of its core business. Base product sales (excluding Veklury) totaled $6.9 billion, up 4% year over year. HIV therapies remain the cornerstone of Gilead’s business, with sales of $5.1 billion, up 7%. Additionally, Biktarvy, Gilead’s flagship HIV treatment, increased sales 9% year to $3.5 billion. These results indicate that Gilead’s growth engine is not reliant on short-term pandemic demands. Instead, its HIV franchise is expanding in both treatment and prevention, presenting a dual growth opportunity that could fuel long-term momentum.
The recent FDA approval and launch of YES2GO, a twice-yearly injectable for HIV prevention, marks one of Gilead’s most significant milestones. Looking ahead, Gilead is already testing lenacapavir injections once a year in Phase III trials. If successful, this would represent an important shift in HIV prevention by reducing dosing to a single shot per year, establishing a new gold standard in the field.
Furthermore, the company is focusing on next-generation regimens to expand its HIV pipeline, with the upcoming ARTISTRY-1 and ARTISTRY-2 phase 3 trial results potentially extending Gilead’s lead in HIV therapy even further. Beyond HIV, Gilead is establishing a…
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