Gilead Earns Analyst Praise As FDA Clears Yeztugo For Biannual HIV Prevention

Analysts at Oppenheimer, BMO, Morgan Stanley, and Mizuho weighed in with positive long-term views, though Oppenheimer flagged near-term headwinds tied to court risks and cannibalization of existing products.

Gilead Sciences garnered investor and analyst focus after the U.S. FDA approval of Yeztugo, or lenacapavir, the company’s injectable HIV-1 capsid inhibitor as pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV in adults and adolescents weighing at least 35kg. 

The company said Yeztugo is now "the first and only twice-yearly option available in the United States for people who need or want PrEP."

In Phase 3 trials, 99.9% of participants who received Yeztugo stayed HIV-negative.

Oppenheimer 

Oppenheimer said it sees limited near-term impact, noting while the firm generally agrees with consensus that Yeztugo “has multi-blockbuster potential,” its model assumes a slow ramp that initially cannibalizes Descvoy's market share. 

The analyst noted that the injectable Apretude had a sluggish launch, but Yeztugo differs in requiring only two clinic visits a year.

Oppenheimer noted that an adverse Supreme Court ruling in Kennedy v. Braidwood, a case challenging mandated insurance coverage of HIV prevention drugs, could create near-term headwinds for Yeztugo adoption.

The firm maintained an ‘Outperform’ rating on Gilead with a $125 price target.

BMO Capital

BMO Capital called the approval “a major win for Gilead” in advancing its PrEP business, highlighting Yeztugo’s clean label, strong clinical data, and convenient twice-yearly dosing. 

BMO reiterated its ‘Outperform’ rating and $120 target.

Morgan Stanley

Morgan Stanley described the FDA approval as “an expected positive,” with label and pricing in line with expectations. 

The firm reiterated an ‘Overweight’ rating and $135 price target.

Mizuho

Mizuho said the Yeztugo label “looks clean” and said lenacapavir may expand the market to additional populations beyond the current 1.2M–2.25M eligible users. 

It noted that the $28,200 annual wholesale cost aligns with branded peers and maintained its ‘Outperform’ rating and $117 target.

Gilead said it is working with insurers to ensure broad access in the U.S. and has initiated regulatory filings in the EU, Australia, Brazil, Canada, South Africa, and other markets that follow FDA precedent.

On Stocktwits, retail sentiment for GILD was ‘bullish’ amid ‘high’ message volume.

The stock has risen 17.5% so far in 2025.

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