Gilead, GSK Stocks Fall as US Reviews HIV Funding Cuts

Gilead Sciences (GILD) shares fell following reports that the Health and Human Services Department is considering significant cuts to federal funding for HIV prevention, which may impact the CDC's HIV prevention division. This division is crucial for state and local program funding, and the potential cuts raise concerns among investors about Gilead's revenue, as HIV medications account for roughly two-thirds of its annual sales. Although brokerages such as J.P. Morgan and Jefferies indicate these cuts may not severely affect access to PrEP treatments, the market remains cautious about the broader implications of funding reductions on public health initiatives. GSK, another company invested in HIV treatments, also experienced stock declines amid these uncertainties. The CDC's allocated budget for HIV prevention was $1.3 billion in 2023, with funding now reportedly under review. Overall, the situation reflects ongoing regulatory risks that could affect both Gilead and the wider biopharmaceutical sector.