The Supreme Court upheld the Affordable Care Act’s no-cost insurance mandate for preventive care, including HIV PrEP, a move analysts say supports broad access to Gilead’s new drug Yeztugo.

Wells Fargo said the U.S. Supreme Court’s decision to preserve no-cost coverage for preventive services marks a “win for Gilead” and its upcoming launch of lenacapavir (Yeztugo), the company’s twice-yearly HIV prevention shot.

The court on Friday upheld the Affordable Care Act’s mandate for insurers to cover services recommended by the U.S. Preventive Services Task Force, including PrEP for HIV. 

The decision removes “a key overhang for many generalist investors,” Wells Fargo analyst Mohit Bansal wrote in a note, while noting that broader macro headwinds remain.

The ruling comes ahead of the commercial rollout of Yeztugo, which received FDA approval earlier this month for use in adults and adolescents at risk of sexually acquired HIV. 

Bansal expects a “robust launch, driven by physician excitement and rapid adoption potential,” and maintained an ‘Overweight’  rating and $140 price target on Gilead.

Gilead has a significant presence in the HIV prevention market, with $4.6 billion in HIV drug revenue in the first quarter of 2025, up 6% year-over-year. 

The company’s portfolio includes Descovy and Biktarvy.

Jefferies also called the decision “an incremental positive” that ensures HIV PrEP coverage remains intact. 

Morgan Stanley reiterated an Overweight rating and $135 target, citing potential upside from the Yeztugo launch.

However, retail sentiment was ‘bearish’ amid ‘high’ message volume.

The stock has risen 20.5% so far in 2025.

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