Gilead Sciences Plunges 3.5% as CVS Drops HIV Shot Coverage

On August 21, 2025, Gilead Sciences' stock experienced a 3.5% drop in pre-market trading, following reports that CVS Health has decided not to add Gilead's new HIV prevention shot to its drug coverage lists. This decision also extends to not covering Yeztugo under its Affordable Care Act formularies, which has raised concerns among investors about the potential impact on Gilead's revenue from this new treatment.

Gilead Sciences has been actively working on expanding its HIV prevention portfolio, and the new twice-yearly injection carries a U.S. list price exceeding $28,000 annually. The exclusion from CVS's coverage lists is a significant setback, as CVS is one of the largest pharmacy benefit managers in the U.S. This decision could limit the accessibility of Gilead's new HIV prevention drug to a large segment of the population, potentially affecting the drug's market penetration and sales.

Despite this challenge, Gilead Sciences has shown resilience in other areas. The company recently reported strong second-quarter earnings, driven by robust sales in its HIV franchise. Gilead's Yeztugo sales have also exceeded expectations following its launch, indicating that the company's HIV prevention efforts are gaining traction in the market. Additionally, Gilead has received a favorable opinion from the European Medicines Agency for its twice-yearly Lenacapavir for HIV prevention, which could open up new opportunities in the European market.

Gilead's management has been proactive in addressing market concerns. The company's CFO, Andrew Dickinson, recently sold shares worth $296,000, which could be seen as a strategic move to manage personal finances rather than a sign of concern over the company's prospects. Gilead's leadership has also been engaged in various investor conferences, presenting the company's outlook and addressing questions about its pipeline and financial performance.