Baron Health Care Fund stated in its second-quarter 2026 investor letter that Gilead Sciences' new HIV prevention therapy Yeztugo remains a promising long-term growth engine despite management's conservative 2026 sales guidance of approximately $800 million, which fell below investor expectations and weighed on the stock during the quarter. The fund noted that Yeztugo, a twice-yearly injectable, could significantly improve patient compliance compared to Gilead's daily oral preventive treatment Descovy. Baron also highlighted Gilead's next-generation pipeline, including a weekly oral lenacapavir and islatravir combination being developed with Merck, and a wholly-owned weekly regimen with a novel integrase inhibitor. Gilead shares closed at $131.15 on August 3, 2026, with a market capitalization of $162.83 billion, and the stock gained 16.62% over the past 52 weeks.
Gilead Sciences IncYeztugo's long-term growth potential and improved compliance could drive demand, despite conservative guidance.
Merck & Company IncMerck's collaboration with Gilead on a weekly oral lenacapavir and islatravir combination highlights pipeline progress.
Merck KGaA