Gilead Sciences (NASDAQ:GILD) stock gained 8.5% after a late-stage trial for lenacapavir, its HIV prevention injection, delivered promising results. This Phase 3 trial, which involved 2,134 women, achieved a 100% success rate, with no HIV infection cases reported.
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Additionally, the results were encouraging compared to Gilead’s current oral HIV preventative medications, Truvada and Descovy. The company said that the latest trial results mark a significant development in the fight against HIV, as zero infections were reported for the first time in a late-stage study.
Buoyed by this impressive outcome, an independent monitor has asked GILD to halt the blind phase of the study and start offering lenacapavir to all participants.
Looking Forward
Gilead is required to deliver positive results from a follow-up Phase 3 trial before seeking FDA approval.
The company is expected to share more data later this year or early next year. Upon successful results, lenacapavir could be made available by the end of 2025.
Growing HIV Drug Market
In July 2023, the World Health Organization (WHO) released a report that showed an estimated 39 million people living with HIV as of 2022. This surge fuels the demand for effective medications to manage the infection.
Thus, the HIV drug market is poised for significant growth, with Fortune Business Insights forecasting a 6.2% compound annual growth rate (CAGR) over the next eight years.
This positive outlook bodes well for Gilead’s lenacapavir, a potential new HIV treatment awaiting regulatory approval.
Is GILD a Good Stock to Buy?
Following the release of Phase 3 trial results, Robert W. Baird analyst Brian Skorney reiterated a Hold rating on Gilead stock with a price target of $80 (implying 16.8% upside potential). The analyst believes that lenacapavir has the potential to become the preferred drug choice for HIV prevention. However, the Hold rating reflects the uncertainty surrounding regulatory approval.
Overall, Wall Street is cautiously optimistic about the company. It has a Moderate Buy consensus rating based on 12 Buy and 13 Hold ratings. The analysts’ average price target on GILD stock of $81.14 implies an upside potential of 18.47%.
