Gilead Sciences (GILD) should not see any impact from the reported cost reductions at the US Department of Health and Human Services, Truist said in a note Wednesday.
The reported changes in the financial overhaul, which appear to be targeting the HIV portion of the prevention efforts, are not expected to affect HIV drug reimbursement or national coverage, the investment firm said.
The Department of Health and Human Services is considering major reductions to funding for domestic HIV prevention efforts, though a final decision has not been made, the Wall Street Journal reported late Tuesday, citing sources with knowledge of the matter.
These potential cuts may be announced within a day and come amid a broader reorganization at the Centers for Disease Control and Prevention, the meda outlet had reported.
The CDC spent about $1.3 billion in the 2023 fiscal year on preventing HIV, viral hepatitis, sexually transmitted infections, and tuberculosis, with most of that money awarded through grants and cooperative agreements, the WSJ reported, citing the CDC.
The US Department of Health and Human Services and CDC did not immediately respond to requests for a comment from MT Newswires.
Shares of the company were down about 3.1% in recent trading.
Truist maintained a hold rating for Gilead Sciences with a $97 price target.
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