Gilead Sciences’ biotech stock continues its upward trajectory as multiple investment banks raise price targets, buoyed by strong quarterly results and a robust HIV portfolio. The company reported $7.1 billion in revenue, with HIV drugs Biktarvy and Descovy outperforming expectations. Bank of America increased its target to $140, citing a 16% upside potential, while RBC Capital also lifted its forecast. Despite a $400 million drop in sales of its Covid treatment Veklury, Gilead raised its annual guidance, highlighting the HIV segment’s 7% growth ($5.1 billion in Q2) and the recent approval of Yeztugo.
Oncology and Shareholder Returns Show Mixed Trends
While oncology revenues grew modestly (1%), flagship drug Trodelvy saw a 14% surge. However, cell therapies declined by 7%. The company announced a $6 billion share buyback program, reflecting confidence in its pipeline, which includes 52 clinical programs. With a 78.5% gross margin and a decade of dividend growth, Gilead remains a standout in a challenging biotech market.
