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RBC Warns Gilead (GILD) Faces Risk from Trump’s Price Cut Target

Gilead Sciences, Inc. (NASDAQ:GILD) is one of the best stocks to buy according to Jim Simons’ Renaissance Technologies. On October 1, RBC analysts stated that Gilead Sciences, Inc. (NASDAQ:GILD) may face a negative impact if its key HIV medication, Biktarvy, is targeted by the proposed price cuts mentioned by President Trump. During an announcement related to a Pfizer deal, President Trump spoke about an unnamed drug that costs $137 per pill in the US and about $10 elsewhere. He vowed to lower the US price to between $15 and $18 per pill. RBC analysts say Biktarvy’s US list price ($140.53 per tablet) matches this description.

The analysts calculated that if Biktarvy is the target and prices are cut in the Medicaid channel, Gilead could see annual Biktarvy revenue drop about 12% to $10.6 billion. This could lower RBC’s valuation of Gilead by about 5%, or $4.70 per share.

However, the analysts conceded that Biktarvy may not be the target for several reasons. First, there is uncertainty about whether Trump’s reference was to list or net pricing. Second, there are questions about whether HIV medications would be an initial focus for pricing reforms. And lastly, there are indications that Biktarvy costs more than $10 in European markets.

RBC identified several other drugs with similar list prices ($135-$140 per pill), such as Pfizer’s Paxlovid, Madrigal’s Rezdiffra, BioMarin’s Kuvan, GSK’s Brexafemme, and Harmony’s Wakix. However, the analysts noted that these are less likely to be Trump’s target compared to Biktarvy.

Gilead Sciences, Inc. (NASDAQ:GILD) is a biopharmaceutical company. It develops and commercializes therapies for viral diseases, oncology, and inflammatory conditions. Its leading portfolio includes drugs targeting HIV and hepatitis C, alongside newer products such as Biktarvy, Veklury (remdesivir), and Trodelvy for cancer.

While we acknowledge the potential of Gilead Sciences, Inc. (NASDAQ:GILD) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than GILD and that has 100x upside potential, check out our report about the cheapest AI stock.

READ NEXT: 13 Best Performing NASDAQ Stocks According to Hedge Funds and 10 High-Growth Semiconductor Stocks That Are Profitable in 2025.

Disclosure: None. This article is originally published at Insider Monkey.

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