New York, Jan 27, 2026, 21:36 EST — The market has closed.
- Gilead’s stock jumped 2.3% to close at $140.97 on Tuesday, marking a fresh 52-week high.
- Medicare selected Gilead’s Biktarvy for drug price negotiations set to begin in 2028.
- Gilead will release its fourth-quarter and full-year 2025 results after the market closes on Feb. 10.
Shares of Gilead Sciences (GILD.O) climbed 2.3% to close at $140.97 on Tuesday, marking a fresh 52-week high and extending their winning streak to five sessions. Trading volume hit roughly 10.5 million shares, surpassing the stock’s 50-day average, according to MarketWatch data. (MarketWatch)
Washington is ramping up efforts to limit Medicare spending on costly branded drugs, naming Gilead’s HIV treatment Biktarvy among 15 medications slated for price negotiations starting in 2028 under the Inflation Reduction Act. These drugs, which accounted for $27 billion in Medicare costs over the year ending Oct. 31, 2025, were targeted due to the absence of generic or biosimilar alternatives, according to the agency. Biktarvy pulled in $13.4 billion in sales in 2024. Gilead says patent settlements extend U.S. coverage through April 2036. JPMorgan projects only a low-20% slice of U.S. sales will be affected, while BMO’s Evan Seigerman described the potential impact as “manageable.” (Reuters)
The negotiation remains years away. Still, the choice prompts firms to factor it into their models now, just as shares climb and investors brace for fewer surprises from major cash generators.
Chairman and CEO Daniel Patrick O’Day exercised options for 115,640 shares at $66.01 each and sold the same number at $135 on Jan. 23, according to a recent SEC filing. After the transactions, he holds 566,698 shares. The filing notes the sales were made under a Rule 10b5-1 plan, which is designed to avoid the appearance of insider trading. (SEC)
Insider sales aren’t always a clear signal, especially when they’re pre-scheduled. But they catch more attention when a stock hits fresh highs.
Gilead plans to report its fourth-quarter and full-year 2025 earnings on Feb. 10, after the market closes. The company’s management will hold a webcast at 4:30 p.m. Eastern Time. (Gilead)
Investors will zero in on the call for specifics beyond the Medicare headline: how fast HIV sales are growing, any early signs of pricing pressure, and if newer ventures can shoulder more of the load. Guidance tends to carry more weight than past results.
The danger is that the market is downplaying how aggressively the government might act once negotiations kick off, or how swiftly pricing pressure could spread to private markets. If Biktarvy demand drops off faster—whether due to competition or policy fallout—that would strike at the story’s most vulnerable spot.
Traders will be eyeing whether Gilead can maintain its position above $140 once the policy news fades and the recent surge loses steam.
The next major event is Feb. 10, when Gilead will report after the bell and hold a Q&A session during the 4:30 p.m. ET webcast.
