Gilead Sciences (GILD) Morgan Stanley 23rd Annual Global Healthcare Conference summary

Strategic progress and portfolio diversification

• Maintains a strong balance sheet, robust cash flows, and disciplined expense management, with no major patent expirations until 2033, supporting growth across all therapeutic areas.

• HIV business durability is prioritized, with diversification beyond Biktarvy through a broad portfolio including lenacapavir-based options for both prevention and treatment.

• Oncology pipeline shows strong momentum, highlighted by successful clinical results in triple-negative breast cancer and multiple myeloma, with more readouts expected in the next 12–18 months.

• Early-stage inflammation programs are positioned as longer-term growth drivers, focusing on novel mechanisms and combination approaches.

• Commercial execution is a key focus, with multiple peri-launches and ongoing optimization of expense structure to drive top-line growth and strong EPS.

HIV and PrEP market expansion

• Significant market expansion efforts for PrEP, with targeted awareness and education campaigns leading to double-digit growth and over 500,000 consumers on PrEP.

• Access for Descovy improved by 10 points in coverage and 20 points in $0 copays, driven by targeted plan engagement and removal of step edits.

• Yeztugo launch strategy aims for 75% coverage at six months and 90% at 12 months, supported by early commercial wins and state Medicaid adoption.

• Bridging strategies leverage Descovy to facilitate Yeztugo uptake, with infrastructure in place to support specialty pharmacy and reimbursement processes.

• Prescription growth and intake metrics are closely tracked, with week-on-week script growth aligning with expectations.

Policy, reimbursement, and access dynamics

• Business is less exposed to tariffs due to 80% of IP and profits being U.S.-based, and maintains a 20% marginal tax rate.

• Engaged in policy discussions on MFN and Part D reform, aiming to reduce out-of-pocket costs and improve value recognition globally.

• Medicaid exposure varies by product, with HIV treatment at mid-20% and prevention at 5–10%; multiple safety nets and state-level programs like ADAP support patient access.

• USPSTF guidelines support broad PrEP access, with lenacapavir expected to be included in future updates; strong pharmaco-economic case for PrEP remains.

• State-level programs and patient access initiatives help mitigate Medicaid changes, with transitions to Medicare or ADAP for those losing coverage.