Gilead's Stock Faces Turbulence Amid Regulatory Win and Looming Layoffs

On April 3, Gilead Sciences announced significant regulatory progress as its HIV treatment, Biktarvy, received approval from the National Medical Products Administration for amendments to its Chinese label. This development involves the removal of restrictions on its use among emtricitabine-resistant populations and the inclusion of new clinical data for pregnant and breastfeeding women. The updated Chinese label now endorses Biktarvy as a complete regimen for treating adult HIV-1 infections, with no evidence of virus resistance to integrase inhibitors or tenofovir, and asserts its suitability as a full antiviral regimen for pregnant women with HIV.

The company is also entering a period of extensive restructuring, which will see significant layoffs from late 2024 to March 2025. These organizational changes will affect facilities such as its Seattle office and California headquarters. Additionally, Gilead plans to cease operations at Kite Pharma's Philadelphia plant by mid-2025, a subsidiary specializing in cell therapy. The anticipated layoffs are part of a broader strategy to optimize resources in anticipation of new product launches. The Gilead China office, while confirming restructuring efforts aligned with long-term strategic goals and accelerated clinical progress, has not disclosed the scale or specific departments affected by the layoffs in China.