Gilead Shares Plunge on Landmark HIV PrEP Approval as $470M Volume Ranks 217th in Market Activity

Gilead Sciences (GILD) fell 1.19% on Aug. 28, with a trading volume of $470 million, ranking 217th in market activity. The stock’s performance coincided with the European Commission’s approval of Yeytuo (lenacapavir), the first twice-yearly injectable HIV pre-exposure prophylaxis (PrEP) in the EU. The drug, administered biannually, demonstrated 100% efficacy in preventing HIV infections in one Phase 3 trial and a 99.9% reduction in another. This milestone extends lenacapavir’s EU market protection by a year and positions it as a potential game-changer in HIV prevention strategies across Europe and beyond.

The accelerated regulatory pathway underscores the treatment’s clinical superiority over existing therapies, supported by data published in The New England Journal of Medicine. Gilead plans to expand global access through ongoing regulatory submissions and a partnership with The Global Fund to supply the drug to up to 2 million people in lower-income countries if approved. Analysts highlight the long-acting formulation’s potential to improve adherence and public health outcomes, though near-term stock performance remains tied to broader market dynamics.

Gilead’s Zacks Rank currently sits at #3 (Hold), reflecting mixed earnings estimate revisions and a valuation discount relative to peers. While the company outperformed revenue and EPS forecasts in recent quarters, forward-looking sales estimates for fiscal 2025 show a modest decline. The stock’s intrinsic value appears undervalued based on traditional metrics, but near-term momentum hinges on execution of its global access strategy and long-term demand for lenacapavir.

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