-- Gilead Sciences (GILD) is seeing strong pre-exposure prophylaxis growth, although questions remain on long-term Yeztugo growth, with expectations for the drug potentially having "gotten ahead of themselves," RBC Capital Markets said in a note Thursday.
The brokerage said regional use patterns in existing PrEP markets underscore the challenges Gilead may face in substantially expanding overall PrEP use over the long term, while persistence for Yeztugo "seems not to be as good as initially hoped."
The HIV business remains solid, driven by strong US Descovy sales in Q1, and the company's $400 million increase to full-year sales guidance reflects confidence in the continued growth of the business, according to the note.
RBC maintained a sector perform rating on the stock and lowered its price target to $122 from $123.
Shares of Gilead Sciences were down 2.5% in Friday trading.
Price: $130.71, Change: $-3.35, Percent Change: -2.50%