Gilead Sciences Stock Falls 1% Amid CVS Decision to Exclude HIV Prevention Drug
ByAinvest
Thursday, Aug 21, 2025 12:22 pm ET1min read
CVS--
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
GILD--
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, YeztugoJuly 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
Stay ahead of the market.
Get curated U.S. market news, insights and key dates delivered to your inbox.
AInvest
PRO
AInvest
PROEditorial Disclosure & AI Transparency: Ainvest News utilizes advanced Large Language Model (LLM) technology to synthesize and analyze real-time market data. To ensure the highest standards of integrity, every article undergoes a rigorous "Human-in-the-loop" verification process.
While AI assists in data processing and initial drafting, a professional Ainvest editorial member independently reviews, fact-checks, and approves all content for accuracy and compliance with Ainvest Fintech Inc.’s editorial standards. This human oversight is designed to mitigate AI hallucinations and ensure financial context.
Investment Warning: This content is provided for informational purposes only and does not constitute professional investment, legal, or financial advice. Markets involve inherent risks. Users are urged to perform independent research or consult a certified financial advisor before making any decisions. Ainvest Fintech Inc. disclaims all liability for actions taken based on this information. Found an error?Report an Issue
Comments
No comments yet