Gilead Sciences (NASDAQ:GILD) continued to rally in early Monday trading, building on Friday’s 2.8% gain, following a significant U.S. Supreme Court decision that upheld a central piece of the Affordable Care Act (ACA). The ruling ensures that insurers must continue covering preventive healthcare services—such as HIV prevention medications and cancer screenings—without passing additional costs to patients.
The decision came as a relief to the healthcare sector, particularly to companies like Gilead, which benefit from widespread access to preventative treatments. The case had challenged the authority of the U.S. Preventive Services Task Force, the federal panel responsible for determining which services insurers are required to cover. A lower court had previously ruled that the panel’s structure was unconstitutional, arguing its members were not appointed by the Senate.
In a 6–3 decision, the Supreme Court overturned that ruling, affirming the legitimacy of the task force and maintaining the current insurance coverage standards.
For Gilead, the decision has direct business implications. The company manufactures Descovy, a leading HIV pre-exposure prophylaxis (PrEP) drug, and is preparing to launch Yeztugo, a newly approved treatment expected to expand its market share.
According to BMO Capital Markets, the ruling eliminates regulatory uncertainty and paves the way for a strong rollout of Yeztugo, which is anticipated to reach approximately 75% insurance coverage within six months of launch, and around 90% by year-end.
Analysts see this legal victory as a “strong positive” for Gilead, reinforcing its dominant position in the HIV prevention space. The company’s HIV portfolio generated $4.6 billion in revenue last quarter, contributing significantly to its $6.6 billion total.
The ACA’s provision of no-cost access has been instrumental in maintaining demand for preventive therapies—making the court’s decision not only a legal win but also a critical business support for companies like Gilead, Merck (NYSE:MRK), and GSK plc (LSE:GSK) that operate in this space.