Morgan Stanley Maintains Overweight Rating on Gilead Sciences Amid Strong Performance in HIV Prevention
Morgan Stanley reaffirmed its Overweight rating for Gilead Sciences (GILD) following a private meeting with the company's leadership at its Global Healthcare Conference. The firm highlighted Yeztugo, Gilead’s twice-yearly HIV prevention shot launched in 2025, as the key driver of optimism. Management described the current portfolio as one of the strongest in the company’s history and noted no patent expirations until 2036 — a rare advantage for large-cap biopharma firms. Yeztugo is performing well with strong patient retention rates and attracting both new users and those switching from existing PrEP options. Morgan Stanley estimates that Yeztugo could generate $1 billion in sales during its first full year, contributing to an overall prevention portfolio of about $4 billion annually. The HIV treatment drug Biktarvy also remains dominant in the market with over 50% global share. The firm’s positive outlook is supported by Gilead's strong cash flow from a diversified product mix and growing demand for PrEP drugs, which are expanding at an annual rate of 14-15%. Morgan Stanley sees continued growth potential as Yeztugo gains traction in the HIV prevention space.
