What Happened?
Shares of biopharmaceutical company Gilead Sciences (NASDAQ: GILD) fell 3.5% in the morning session after reports that CVS Health will not be adding the company's new HIV prevention drug, Yeztugo, to its commercial insurance plans for now.
CVS, which operates the largest U.S. pharmacy benefit manager, based its decision on “clinical, financial, and regulatory factors.” The company also confirmed it will not cover Yeztugo under its Affordable Care Act formularies. This development represents a setback for Gilead, which had previously expressed confidence in achieving 75% insurance access for the new drug within six months and 90% within a year. Despite the decision, Gilead stated that most insurers continue to cover HIV prevention products and projected it would still reach 75% U.S. insurer coverage by the end of 2025. One analyst from BMO Capital called the development an "incremental negative" but noted that the delay from CVS is not yet a major concern for Yeztugo's broader coverage goals.
The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks. Is now the time to buy Gilead Sciences? Access our full analysis report here, it’s free.
What Is The Market Telling Us
Gilead Sciences’s shares are not very volatile and have only had 4 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock gained 8.7% on the news that the company reported second-quarter 2025 results that topped Wall Street's expectations and raised its full-year financial guidance. The biopharmaceutical company posted revenue of $7.08 billion and adjusted earnings per share (EPS) of $2.01, beating analysts' consensus estimates for both figures. Buoyed by the results, Gilead raised its full-year adjusted EPS guidance to a midpoint of $8.10. While it also slightly lifted its full-year revenue guidance to $28.5 billion, this figure remained just below what analysts were projecting. Investors appeared to focus on the earnings beat and the improved profit outlook for the year, which outweighed the more cautious signal on revenue.
Gilead Sciences is up 27.6% since the beginning of the year, and at $117.20 per share, it is trading close to its 52-week high of $120.47 from August 2025. Investors who bought $1,000 worth of Gilead Sciences’s shares 5 years ago would now be looking at an investment worth $1,762.
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