Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Gilead Sciences, Inc. (GILD) Begins A Process That Could Alleviate Its Problems

Gilead Sciences, Inc. (NASDAQ:GILD) has switched course and has begun aggressive marketing of its HIV drug Truvada as a preventative medicine for HIV-negative healthy people. The company initially struggled with conflicting views of pitching Truvada for PrEP (pre-exposure prophylaxis).

Some patient activists argued that promoting Truvada as a preventative drug for HIV would encourage unsafe practices and cause promiscuity to flourish. Those concerns caused Gilead to go slow on spreading Truvada’s PrEP message. But the company also started facing pressure from other activists who reasoned that staying mum on the PrEP capabilities of Truvada was bad for people who needed help from the drug, such as those who share needles.

Gilead GILD pharmacist store examing pharmaceutical stocks medical

kurhan /

After listening to both sides of the arguments, Gilead Sciences, Inc. (NASDAQ:GILD) has come to the conclusion that it is important to lift the lid on Truvada’s preventative properties. Pitching Truvada for PrEP would not only save many Americans from catching HIV, but also unlock a revenue opportunity for Gilead.

Addressable market

As per CDC estimates some 1.2 million people in the U.S. are at high risk of being infected by HIV. If that is the case, then the sales opportunity for Truvada in preventative market is significant.

The uptake of Truvada for PrEP is gaining momentum rapidly since Gilead started getting the word out broadly.  Gilead first targeted doctors with Truvada for PrEP promotions through advertisements on professional publications and digital channels. Then it expanded the outreach to include the homosexual community. Lately it is pitching to patients and the response has been sizable, especially given that Gilead has a patient assistance program that helped keep the cost of the medicine low.

From about 60,000 people who used Truvada for PrEP earlier this year, as of the end of 3Q16 the drug was used by 90,000 people for that purpose in the U.S. alone.

“We expect PrEP to continue to be a significant part of Gilead’s growth in HIV going forward, particularly in the U.S.,” said Gilead COO Kevin Young.

Gilead Sciences, Inc. (NASDAQ:GILD) wants Truvada for PrEP to catch on quickly considering that the company is already struggling with weak sales in its hepatitis C mainstay. Sales of Sovaldi and Harvoni have slowed down amid competition in the hepatitis C space and protests over the high costs of the drugs.

Gilead stock is down about 27% YTD and down more than 31% over the last one year.

Follow Gilead Sciences Inc (NASDAQ:GILD)
Trade (NASDAQ:GILD) Now!

Note: This article is written by Adam Russell and originally published at Market Exclusive.

DOWNLOAD FREE REPORT: Warren Buffett's Best Stock Picks

Let Warren Buffett, George Soros, Steve Cohen, and Daniel Loeb WORK FOR YOU.

If you want to beat the low cost index funds by 19 percentage points per year, look no further than our monthly newsletter.In this free report you can find an in-depth analysis of the performance of Warren Buffett's entire historical stock picks. We uncovered Warren Buffett's Best Stock Picks and a way to for Buffett to improve his returns by more than 4 percentage points per year.

Bonus Biotech Stock Pick: You can also find a detailed bonus biotech stock pick that we expect to return more than 50% within 12 months.
Subscribe me to Insider Monkey's Free Daily Newsletter
This is a FREE report from Insider Monkey. Credit Card is NOT required.