Gilead Sciences (GILD) continues to benefit from strong demand for its HIV medicines, helping support growth as the company expands its pipeline and prepares for pricing changes under the US Inflation Reduction Act, RBC Capital Markets said Thursday in a report.
Q3 sales from Gilead's HIV portfolio rose 10% to $6.25 billion from Q2, driven by market-share gains for Biktarvy, growth in HIV prevention products and pricing benefits, the report said. RBC also said Gilead's increased full-year revenue guidance appears achievable.
Biktarvy should remain a durable growth driver through the end of the decade, with limited competitive threats and favorable demographic trends supporting the HIV franchise, the report said. RBC also highlighted progress in Gilead's immunology and oncology pipeline, including encouraging data for emvistegrast, a drug candidate being developed for inflammatory bowel diseases.
The Inflation Reduction Act is expected to reduce Biktarvy's price by about 38% beginning in 2028, the report said. While Gilead expects HIV revenue to continue growing despite the changes, pricing may become a less important growth driver over time, RBC said.
RBC raised its price target on Gilead shares to $131 from $126 and maintained its sector-perform rating.
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