Gilead Sciences Stock Drops 1% as CVS Rejects HIV Prevention Drug

Gilead Sciences' stock dropped 1% after CVS Health decided not to cover its new HIV prevention drug, Yeztugo, citing clinical, financial, and regulatory factors. Gilead had previously hailed the FDA approval of Yeztugo, which is aimed at reducing the risk of acquiring HIV through sex. Analysts note that CVS coverage delays are not concerning for Yeztugo's broad coverage goals and upcoming coverage decisions from UnitedHealth and Cigna could be more significant catalysts.

Gilead Sciences' (NASDAQ: GILD) stock dropped by 1% following CVS Health's (NYSE: CVS) announcement that it will not cover the company's new HIV prevention drug, Yeztugo. The decision was made based on clinical, financial, and regulatory considerations, according to a CVS spokesperson [1]. Yeztugo, an injectable HIV-1 capsid inhibitor, was approved by the FDA in June 2025 for use as pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV in adults and adolescents weighing at least 35 kg [2].

The twice-yearly injection, priced at over $28,000 annually, will not be included in CVS's commercial plans or Affordable Care Act (ACA) formularies. CVS's ACA preventive program follows recommendations and mandates from the U.S. Department of Health and Human Services (HHS). Current HIV prevention recommendations from the U.S. Preventive Services Task Force, supported by HHS, only include three older medications [1].

While Gilead is still in negotiations with CVS regarding Yeztugo coverage, the company is making progress with other health insurance companies and payers. Reuters reports that Gilead is on track to secure 75% of U.S. insurer coverage of Yeztugo by year-end and 90% coverage by June 2026 [3].

Analysts note that CVS's decision to delay coverage is not a significant concern for Yeztugo's broad coverage goals. Upcoming coverage decisions from UnitedHealth and Cigna could have a more substantial impact on the drug's market penetration and Gilead's financial performance.

References:
[1] https://www.investing.com/news/stock-market-news/cvs-health-wont-cover-gileads-new-hiv-prevention-drug-yeztugo--reuters-93CH-4203165
[2] https://www.idse.net/FDA-News/Article/06-25/Yeztugo-FDA-Approved-HIV-PrEP/77487
[3] https://www.washingtonblade.com/2025/08/22/cvs-health-withholds-coverave-new-hiv-prevention-drug/