Gilead Sciences' HIV Franchise Drives Optimism as BofA Raises Price Target to $154

The recent decision by BofA Securities to elevate its price target for Gilead Sciences (GILD) to $154-from $144-reflects a compelling convergence of pharmaceutical innovation and strategic financial positioning. Maintaining a "Buy" rating, the firm underscores confidence in Gilead's HIV franchise, which has demonstrated resilience and growth amid evolving market dynamics. This analysis explores how Gilead's commitment to innovation, coupled with its robust revenue streams and extended intellectual property protections, positions the company as a cornerstone for long-term value creation in the biopharmaceutical sector.

HIV Franchise: A Pillar of Sustained Growth

Gilead's HIV portfolio remains a linchpin of its financial and strategic success. In Q3 2025, total HIV product sales surged 4% year-over-year to $5.3 billion, driven by flagship products like Biktarvy and Descovy. Biktarvy, the company's top-selling antiretroviral therapy, generated $3.7 billion in revenue-a 6% increase-while Descovy's sales soared 20% to $701 million, reflecting strong adoption in pre-exposure prophylaxis (PrEP) markets. These figures highlight not only the durability of Gilead's existing therapies but also their ability to adapt to shifting clinical and consumer preferences.

A critical catalyst for optimism is the launch of Yeztugo, Gilead's twice-yearly long-acting injectable PrEP. Approved in late 2024, Yeztugo generated $39 million in Q3 2025 sales and is projected to reach $150 million in total revenue for the year. This product exemplifies Gilead's pivot toward differentiated therapies that address unmet needs, such as adherence challenges in PrEP regimens. By expanding its HIV portfolio with innovative delivery mechanisms, Gilead is not only capturing market share but also reinforcing its leadership in a therapeutic area projected to grow with the global push for HIV eradication.

Strategic Positioning and Intellectual Property Advantages

Gilead's ability to sustain growth is further bolstered by its intellectual property (IP) strategy. Biktarvy, which accounts for over 60% of HIV franchise revenue, retains exclusivity until 2036-a critical buffer against generic competition. This extended IP life provides a predictable revenue stream, enabling the company to reinvest in R&D and explore adjacencies such as cell therapy and gene editing. Analysts note that Gilead's disciplined approach to portfolio management-prioritizing high-margin, high-impact assets-has insulated it from the volatility seen in other biotech sectors.

Moreover, the company's recent forays into long-acting injectables, exemplified by Yeztugo, signal a strategic shift toward therapies that enhance patient outcomes while reducing healthcare system burdens. This aligns with broader industry trends favoring value-based care and cost-effective treatments, positioning Gilead to capitalize on both clinical and economic value propositions.

Investment Implications: Innovation as a Long-Term Driver

The elevation of BofA's price target to $154 is not merely a reaction to near-term performance but a recognition of Gilead's long-term value creation. As stated by Tazeen Ahmad, a key analyst initiating coverage with a "Buy" rating, Gilead's "strategic depth in HIV and its ability to innovate in high-growth areas justify a premium valuation". The stock's proximity to its 52-week high further indicates market alignment with this thesis, as investors price in future cash flows from both established and emerging assets.

For strategic investors, Gilead represents a rare combination of mature revenue streams and innovation-driven growth. Its HIV franchise, fortified by IP protections and a pipeline of next-generation therapies, offers a stable foundation for capital appreciation. Meanwhile, the company's foray into injectable PrEP and potential expansion into HIV cure research-though nascent-hint at transformative opportunities that could redefine its growth trajectory.

Conclusion

Gilead Sciences' HIV franchise is more than a revenue generator; it is a testament to the power of sustained innovation in biopharma. By leveraging its scientific expertise, IP advantages, and market insights, the company has created a self-reinforcing cycle of growth and reinvestment. As BofA's revised price target suggests, investors who recognize the interplay between pharmaceutical innovation and long-term value creation are well-positioned to benefit from Gilead's continued ascendancy in a critical therapeutic area.