Morgan Stanley Reaffirms Overweight on Gilead Sciences, Inc. (GILD), Citing LEN Potential

On Monday, analysts at Morgan Stanley reiterated their Overweight rating on Gilead Sciences, Inc. (NASDAQ:GILD), while maintaining a price target of $135. This positive outlook is based on the biotechnology giant’s prospects of lenacapavir (LEN), a long-acting injectable for HIV pre-exposure prophylaxis (PrEP), reducing the dosage in contrast to the current oral and bi-monthly alternatives.

With a market capitalization of $135.476 billion, the company is well-positioned in the industry, exhibiting a solid track record of consistent dividends over the past years. As long as the company is able to successfully launch and enhance the adoption of LEN, the future of Gilead Sciences, Inc. (NASDAQ:GILD) looks bright.

A physician and a patient having a discussion in a hospital about biopharmaceutical medicines.

The two Phase 3 HIV PrEP trials in the past year demonstrated favorable LEN outcomes, with the analysts expecting the approval for PrEP by the U.S. Food and Drug Administration (FDA) by June 19, 2025. While LEN is anticipated to launch in the summer, a clearer picture of the full revenue impact will be more visible by 2026, with sales projected to rise as high as $760 million.

Thanks to its HIV prevention offering, the company is poised to have a strong footing in the HIV therapy market, building a bullish case for many analysts. Additionally, the growing sales of its HIV franchise, attributed to Biktarvy and Sunlenca, support the demand for Vemlidy and the successful launch of Livdelzi.

Gilead Sciences, Inc. (NASDAQ:GILD) is a leading biopharmaceutical company based in Foster City, California. With a presence in the United States, Europe, and internationally, the company designs, develops, and markets innovative treatments targeted at underserved markets.

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