Gilead Sciences: Can a Twice-Yearly HIV Injection Drive Its Next Growth Phase?

Gilead Sciences appears to be on the cusp of a significant transformation. The biotechnology firm’s stock is exhibiting robust technical strength, yet its fundamental valuation continues to present a complex picture for investors. This dynamic is set against the backdrop of a major scientific and commercial breakthrough: the recent FDA approval of its innovative HIV prevention therapy.

A New Era for HIV Treatment and Prevention

In a landmark decision, the U.S. Food and Drug Administration (FDA) granted approval to Yeztugo (lenacapavir) in June 2025. This isn’t just another addition to the HIV arsenal; it represents a paradigm shift in treatment logistics. As the first injection requiring administration only twice a year, it boasts an efficacy rate exceeding 99.9%. More importantly, it tackles two persistent challenges in HIV care: the development of drug resistance and the social stigma associated with a daily medication regimen.

Market experts project that this revolutionary therapy could capture a dominant 38% share of the market by 2030, translating to approximately $4.1 billion in annual revenue. Demonstrating its confidence, Gilead is aggressively pursuing market penetration, targeting 90% insurance coverage in the United States within the first year of launch. This aggressive strategy underscores the company’s bet on Yeztugo to solidify and expand its leadership in the global HIV market.

Strong Quarterly Performance Provides a Solid Base

The company’s ambitious plans are built upon a foundation of solid financial performance. For the second quarter of 2025, Gilead reported revenue of $7.1 billion, reflecting a 2% year-over-year increase. Adjusted earnings per share (EPS) came in at $2.01, surpassing market expectations.

This performance was largely propelled by the strength of its HIV portfolio, which saw a 7% jump to $5.1 billion. Key contributors within this segment included:
* Biktarvy, the flagship HIV treatment, which advanced 9% to $3.5 billion.
* Descovy, which experienced a significant 35% surge, reaching $653 million.
* Beyond HIV, the oncology drug Trodelvy also posted strong growth, climbing 14% to $364 million.

Should investors sell immediately? Or is it worth buying Gilead Sciences?

Bolstered by these results, management raised its financial guidance for the full year 2025 and announced a new $6 billion stock repurchase program.

Wall Street’s Mixed Verdict

Despite the wave of positive developments, analyst sentiment remains divided. Some research firms have issued “Strong Buy” recommendations and lifted their price targets, reflecting optimism about Yeztugo’s potential. Others maintain a more cautious “Neutral” stance, likely awaiting further commercial validation for the new therapy. From a technical analysis perspective, short-term indicators are bullish, with the stock registering an internal diagnostic score of 8.63.

Interest from major investors appears measured but growing. For instance, Vident Advisory LLC increased its stake in Gilead by 53% during the first quarter. With a price-to-earnings (P/E) ratio of 22.27 and a dividend yield of 2.8%, some analysts view Gilead’s stock as slightly undervalued compared to its industry peers.

The central question for investors now is whether Yeztugo can live up to its blockbuster expectations and provide the sustained growth engine needed to elevate Gilead Sciences to a new level.