Gilead Sciences Stock Falls 1% Amid CVS Decision to Exclude HIV Prevention Drug

Gilead Sciences shares dropped 1% after CVS Health rejected its new HIV prevention drug, Yeztugo, due to clinical, financial, and regulatory factors. Despite FDA approval in June, CVS will not add Yeztugo to its commercial plans or cover it under its Affordable Care Act formularies. Gilead aims for 75% access within six months and 90% within 12 months. TipRanks' consensus rating is Strong Buy with a highest price target of $143.

Title: CVS Health Rejects Gilead Sciences' New HIV Prevention Drug, Yeztugo

July 02, 2025

In a significant development for the HIV prevention landscape, CVS Health has announced that it will not include Gilead Sciences' new HIV prevention drug, Yeztugo, in its commercial plans or cover it under its Affordable Care Act (ACA) formularies. The decision, based on clinical, financial, and regulatory factors, has led to a 1% drop in Gilead Sciences' shares [1].

Yeztugo, approved by the FDA in June, is a twice-yearly injectable for pre-exposure prophylaxis (PrEP) to reduce the risk of sexually acquired HIV in adults and adolescents weighing at least 35 kg. Despite its effectiveness, CVS Health has cited concerns over the drug's annual list price exceeding $28,000, which it considers unsustainable [2].

The U.S. Preventive Services Task Force (USPSTF), which CVS Health follows, currently recommends only three older HIV prevention drugs. This has led to criticism from HIV advocates, who argue that Yeztugo could be a transformative tool in ending the HIV epidemic [3].

Gilead Sciences, however, remains optimistic about Yeztugo's adoption. The company aims to secure 75% U.S. insurer coverage by the end of 2025 and 90% by mid-2026. Other pharmacy benefit managers (PBMs), such as UnitedHealth Group's OptumRX, are also reviewing Yeztugo for coverage [4].

References

[1] https://uk.finance.yahoo.com/news/exclusive-cvs-holds-off-adding-204111955.html
[2] https://www.investing.com/news/stock-market-news/cvs-health-wont-cover-gileads-new-hiv-prevention-drug-yeztugo--reuters-93CH-4203165
[3] https://seekingalpha.com/news/4487859-cvs-health-excludes-coverage-gileads-new-hiv-drug
[4] https://www.benzinga.com/news/health-care/25/08/47257284/cvs-health-declines-to-add-gileads-steeply-priced-new-hiv-prevention-drug-to-its-plans