Gilead’s $0.7B Volume Plunge as CVS Coverage Snub Overshadows EMA Approval Boost

Gilead Sciences (GILD) fell 2.18% on August 21, with a trading volume of $0.7 billion, as concerns over limited insurance coverage for its new HIV prevention drug Yeztugo weighed on investor sentiment. The stock’s decline followed reports that CVS Health, a major pharmacy benefit manager, will not include Yeztugo in its commercial insurance plans or Affordable Care Act formularies, citing clinical, financial, and regulatory considerations. This decision delays Gilead’s goal of achieving 75% insurance coverage by year-end 2025, though the company maintains that most insurers still cover HIV prevention therapies.

The European Medicines Agency’s recent recommendation for approval of Gilead’s twice-yearly HIV prevention drug adds a positive catalyst, while RBC Securities upgraded its price target to $98.00. Analysts note the setback with CVS is not yet a major threat to Yeztugo’s long-term prospects, but short-term coverage gaps could impact near-term adoption. Despite the drop, Gilead’s shares remain close to their 52-week high, reflecting strong underlying demand for its HIV portfolio and recent earnings momentum.

Backtest analysis of a strategy buying the top 500 stocks by daily volume and holding for one day from 2022 to 2025 yielded a 1.98% average daily return, with a total return of 7.61% over 365 days. The strategy’s Sharpe ratio of 0.94 highlights favorable risk-adjusted returns, though a maximum drawdown of -29.16% underscores volatility risks during market downturns.