Gilead Sciences: A Hidden Gem in Biotech with Strong HIV and Oncology Pipeline

Gilead Sciences, a $147 billion biotech company, is strengthening its pipeline in oncology and next-generation cell therapy, which has long-term growth potential that the market may be overlooking. Despite a 26.9% year-to-date gain, the company's core business, including HIV therapies, is expanding, with sales of $6.9 billion, up 4% year over year. Gilead's HIV franchise is expanding in treatment and prevention, presenting a dual growth opportunity that could fuel long-term momentum.

Gilead Sciences, a $147 billion biotech company, is bolstering its pipeline in oncology and next-generation cell therapy, presenting significant long-term growth potential that the market may be overlooking. Despite a 26.9% year-to-date gain, the company's core business, including HIV therapies, is expanding, with sales of $6.9 billion, up 4% year over year. Gilead's HIV franchise is expanding in treatment and prevention, presenting a dual growth opportunity that could fuel long-term momentum.

In a strategic move, Gilead announced on Thursday a deal to pay $350 million to buy privately held Interius BioTherapeutics. The acquisition is aimed at advancing in vivo cell therapy, a technology designed to reprogram immune cells in patients' bodies. If successful, this approach could offer a simpler alternative to the complex CAR-T therapies that Gilead's Kite Pharma division has brought to market [1].

The acquisition of Interius underscores Gilead's commitment to innovation in oncology. The company has been investing heavily through acquisitions and partnerships, such as its collaboration with Arcellx in multiple myeloma. Interius' technology, which uses engineered viruses to deliver instructions for cancer-targeting protein receptors, is among the first in vivo cell therapies to be tested in humans. An ongoing Phase 1 study is evaluating an experimental drug called INT2104 in certain blood cancers [1].

Gilead is also making significant strides in HIV prevention. The company's new HIV prevention drug, Yeztugo, received FDA approval in June. However, CVS Health announced it will not add Yeztugo to its commercial plans, citing clinical, financial, and regulatory factors. CVS also won't cover Yeztugo under its Affordable Care Act formularies. The decision is based on the drug's high price tag and the fact that it is not yet recommended by the U.S. Preventive Services Task Force [2].

Despite this setback, Gilead remains confident in Yeztugo's adoption. The company projects 75% U.S. insurer coverage of the new drug by the end of 2025, with expectations to reach 90% by mid-2026. Gilead's CEO Daniel O’Day emphasizes that preventive treatment remains cost-effective given the lifetime cost of managing an HIV infection can surpass $1 million [2].

In conclusion, Gilead Sciences is positioning itself for long-term growth through strategic acquisitions and investments in innovative therapies. The company's dual focus on oncology and HIV, both in treatment and prevention, presents a strong foundation for sustained growth.

References:
[1] https://www.biopharmadive.com/news/gilead-interius-acquire-in-vivo-cell-therapy/758266/
[2] https://www.investors.com/news/technology/gilead-stock-hiv-prevention-yeztugo-cvs-health/