Core Insights - Gilead Sciences, Inc. (GILD) has demonstrated strong performance in 2025, with shares rising 26.5% year to date, significantly outperforming the industry growth of 6% [1][9] - The FDA approval of lenacapavir, branded as Yeztugo, for HIV prevention has been a pivotal event, marking it as the first twice-yearly injectable pre-exposure prophylaxis (PrEP) option in the U.S. [3][7] Gilead's HIV Portfolio - Gilead holds a leading position in the HIV treatment market, with its flagship drug Biktarvy commanding over 51% market share in the U.S. [4] - The company anticipates a 3% growth in HIV sales for 2025, up from previous expectations of flat revenue, driven by strong performances from Biktarvy and Descovy [5] - The approval of Yeztugo enhances Gilead's HIV portfolio, especially as Truvada faces generic competition [6] Oncology and Cell Therapy - Gilead's oncology portfolio includes Trodelvy, which has shown strong performance in treating metastatic triple-negative breast cancer, with plans for further approvals [11] - However, the Cell Therapy franchise, including Yescarta and Tecartus, is facing competitive pressures in the U.S. and Europe [12] - Gilead's subsidiary Kite has acquired Interius BioTherapeutics for $350 million, enhancing its capabilities in CAR T-cell therapies [13] Liver Disease Portfolio - The FDA approval of seladelpar, branded as Livdelzi, for primary biliary cholangitis (PBC) has strengthened Gilead's liver disease portfolio [14][15] Financial Performance and Estimates - Gilead's shares are currently trading at a price/earnings ratio of 13.62x forward earnings, lower than the large-cap pharma industry's average of 14.83x [16] - Earnings estimates for 2025 have increased to $8.10 from $8.02, while the estimate for 2026 has slightly decreased to $8.50 from $8.53 [17] Strategic Collaborations - Gilead has partnered with the U.S. State Department to deliver lenacapavir, indicating a commitment to expanding its HIV prevention efforts [10] - The company is also collaborating with Merck to evaluate a combination treatment for HIV, with updates expected in 2026 [20] Dividend and Cash Position - Gilead has maintained a strong cash position, with $7.1 billion in cash and equivalents as of June 30, 2025, supporting its sustainable dividend yield of 2.76% [22] - In Q2 2025, Gilead paid out $994 million in dividends and repurchased $527 million of common stock, reflecting its commitment to returning value to shareholders [21]

Group 1: Acquisition Details - GSK has signed an agreement to acquire efimosfermin alfa from Boston Pharmaceuticals for an upfront payment of $1.2 billion, with potential milestone payments of up to $800 million [5] - Efimosfermin is an investigational long-acting variant of FGF21 protein aimed at treating steatotic liver disease (SLD) and is currently in mid-stage studies for metabolic dysfunction-associated steatohepatitis (MASH) [2][3] Group 2: Drug Development and Market Potential - GSK plans to develop efimosfermin as a monotherapy and in combination with its investigational siRNA therapeutic, GSK'990, also targeting SLD [3] - The company believes efimosfermin could become the new standard-of-care for MASH, with a commercial launch expected in 2029 [4] Group 3: Strategic Intent and Future Outlook - The acquisition aligns with GSK's strategy to expand its pipeline as key drugs approach the end of their exclusivity period, particularly the dolutegravir HIV franchise expiring in 2028-2029 [9] - GSK aims to generate sales exceeding £40 billion by 2031, focusing on therapeutic areas such as HIV, immunology/respiratory, and oncology, with 18 candidates in late-stage development or regulatory review [10] Group 4: Recent Product Launches and Regulatory Updates - GSK expects to launch five new products or line extensions this year, with two already approved by the FDA [11] - Regulatory decisions on three additional candidates are pending, with final decisions expected throughout 2025 [11] Group 5: Setbacks in Drug Development - GSK has decided to end the development of the anti-TIGIT antibody belrestotug, which did not meet established efficacy criteria [12][13] - This decision represents a setback for GSK's oncology ambitions, following a $625 million upfront payment made in 2021 for the rights to the drug [13]