Gilead, Global Fund Enter Agreement To Supply HIV Prevention Drug To Low & Lower-Middle-Income Countries

Gilead Sciences, Inc. (GILD) on Wednesday announced a strategic partnership agreement with the Global Fund to combat AIDS, Tuberculosis, and Malaria by supplying doses of its HIV prevention injection for low- and lower-middle-income countries.

GILD shares were trading 1% higher at the time of writing.

Under the agreement, Gilead will supply enough doses of its Lenacapavir drug to reach up to two million people over three years in countries supported by the Global Fund, at no profit to the company. The company did not provide price details of the agreement.

Under the agreement, countries supported by the Global Fund can access Lenacapavir. Early access will be prioritized based on HIV epidemiology, national prevention strategies, and available resources, Global Fund said, while adding that its ambition is to have the first shipment and delivery of the products reach at least one African country by the end of 2025.

The organization also noted that countries, mostly in sub-Saharan Africa, have expressed strong interest in introducing the drug early and at scale.

Lenacapavir was approved by the U.S. Food and Drug Administration in June. It is a twice-yearly, long-acting injectable for use as pre-exposure prophylaxis (PrEP) by HIV-negative individuals to significantly reduce the risk of contracting HIV.

In October, Gilead signed royalty-free licensing agreements to manufacture and supply high-quality generic versions of Lenacapavir in 120 high-incidence, resource-limited countries, which are primarily low- and lower-middle-income countries. Gilead also committed to providing Lenacapavir at no profit until licensed generic versions are available and can fully meet demand.

“Our ambition is to reach 2 million people with long-acting PrEP. But we can only do that if the world steps up with the resources required,” said Peter Sands, Executive Director of the Global Fund. Without urgent and sustained investments, the ambition to reach 2 million people with long-acting PrEP risks falling short, the organisation added.

Gilead also added that it is pursuing multiple strategies to support access to Lenacapavir in other middle-income countries, including many in Latin America, which are not covered by the agreement with the Global Fund. The company is pursuing strategies including tiered pricing and potential public-private partnerships in these regions, it said.

On Stocktwits, retail sentiment around Gilead continues to trend in the ‘bearish’ territory, coupled with ‘low’ message volume.

The stock is up by 22% this year and by about 66% over the past 12 months.

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