Gilead Stock Rises On US Supreme Court Ruling In Favor Of Health Insurers Covering Preventive Care

Shares of Gilead Sciences Inc. (GILD) jumped more than 2% on Friday afternoon after the U.S. Supreme Court upheld a part of the Affordable Care Act (ACA) that helps guarantee that health insurers cover preventive care, including HIV-preventing medication, at no cost to patients.

The court on Friday upheld the constitutionality of the 16-member United States Preventive Services Task Force (USPSTF), which recommends which services are covered under the Act, popularly known as Obamacare.

Gilead has a significant portfolio of HIV drugs. The company’s HIV product sales increased 6% to $4.6 billion in the first quarter (Q1) of 2025 compared to the same period in 2024, primarily driven by higher average realized price and demand. This includes the company’s drugs called Biktarvy and Descovy.

The company also got the U.S.Food and Drug Administration’s (FDA) approval for Yeztugo, a pre-exposure prophylaxis (PrEP) twice-yearly shot to reduce the risk of sexually acquired HIV in adults and adolescents weighing at least 35kg, earlier this month.

Jefferies noted that the favorable ruling on Friday means HIV PrEP mandated coverage stands, and the USPSTF and current recommendations remain in place, as per TheFly.

The firm, which calls this "an incremental positive" for Gilead that removes an overhang going into the launch for Yeztugo, has a ‘Buy’ rating and $130 price target on Gilead shares.

Morgan Stanley reiterated an ‘Overweight’ rating and $135 price target on Gilead after the news.

The brokerage views this outcome as favorable for Gilead, supporting continued broad access to PrEP options, including Gilead's Descovy or Yeztugo. Morgan Stanley continues to see upside to the Yeztugo launch, which should be a positive driver for Gilead shares.

GILD stock is up by over 19% this year and by over 60% over the past 12 months.

Retail sentiment around GILD on Stocktwits, however, is trending in the ‘bearish’ territory.

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