Why Morgan Stanley likes Gilead's HIV prevention play

Lakefront Biotherapeutics (LKFT) plans to start registrational trials for gamgertamig in 2027, following a restructuring and acquisition of assets from Ouro Medicines. Gilead Sciences (GILD) and Lakefront completed the acquisition of Ouro Medicines to expand their inflammation pipeline. Nektar Therapeutics (NKTR) is advancing its immunology and oncology pipeline through research collaborations.

Gilead Sciences expanded licensing for investigational once-yearly lenacapavir for HIV prevention, aiming to streamline future approval and distribution. WHO updated malaria guidelines to include Coartem® Baby, an antimalarial for newborns developed by Novartis and partners, now approved in 11 countries.

Gilead Sciences (GILD) partnered with PAHO to expand access to its HIV-prevention drug lenacapavir in 14 Latin American and Caribbean countries. The deal aims to address rising HIV infections in the region, with Gilead expecting $1B in 2026 sales. Lenacapavir's twice-yearly dosing differentiates it from daily oral PrEP, and Gilead raised its 2026 HIV-product sales growth forecast to 9%-10%.

PAHO and Gilead Sciences agreed to provide lenacapavir, an HIV prevention drug, to 14 Latin American and Caribbean countries via PAHO's Regional Revolving Funds. The WHO recommended lenacapavir in 2025, citing near 100% efficacy. Gilead aims to advance technology transfer in Brazil for local production. PAHO supports countries with technical cooperation for implementation.

Gilead Sciences reports Yeztugo, an HIV prevention injection, is exceeding sales forecasts, with at least $1 billion expected in its first full year. The company also highlights advancements in its oncology and inflammation pipeline, including a potential launch for anito-cel in multiple myeloma and upcoming Phase II readouts for other candidates. According to Gilead, these developments mark an 'inflection point' for growth.

Gilead Sciences (GILD) won an appeals court ruling blocking imports of its HIV drug Biktarvy. The court found material differences between US and foreign versions, siding with Gilead's arguments. The case involved companies like Meritain Health and ProAct, accused of facilitating illegal imports. Gilead claims the ruling enhances patient safety by preventing non-FDA-approved drugs from entering the US market.