Gilead Sciences (NASDAQ:GILD) saw its stock decline 2.7% in pre-market trading Thursday following news that CVS Health (NYSE:CVS) will not immediately add the company’s new HIV prevention drug, Yeztugo, to its commercial plans.
CVS, the largest U.S. pharmacy benefit manager, cited clinical, financial, and regulatory considerations for the decision. The drug will also not be included in CVS’s Affordable Care Act formularies, as the ACA preventive program follows guidance from the U.S. Department of Health and Human Services.
The move contrasts with Gilead’s earlier projections, which had anticipated achieving 75% patient access within six months and 90% within a year.
BMO Capital analyst Evan David Seigerman described the development as an “incremental negative” for Gilead but noted that “CVS coverage delays are not yet concerning for Yeztugo’s broader access goals.” He added that discussions with CVS are ongoing and that the U.S. Preventive Services Task Force (USPSTF) has yet to decide on adding Yeztugo to its recommended coverage list.
Analysts at Mizuho suggested that decisions from UnitedHealth (NYSE:UNH) and Cigna (NYSE:CI) could now have greater impact on the drug’s adoption, noting that CVS seems to be pushing back on pricing, either for the injections directly or in comparison to daily oral pills.
Yeztugo, administered bi-annually, has shown strong efficacy in clinical trials for preventing HIV.
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