1. Gilead's agreement aims to reduce drug costs for U.S. patients. 2. The deal includes discounts on Medicaid medicines and pricing strategies. 3. Gilead will invest $32 billion in U.S. manufacturing and R&D. 4. A Direct-to-Patient Program will enhance access to Hepatitis C treatment. 5. Expect manageable financial impacts starting in 2026 from this agreement.
FAQ
Why Bullish?
The investment in U.S. manufacturing may bolster Gilead's long-term profitability, improving market sentiment. Historical examples include the positive impact of past agreements with governments that enhanced operational clarity and market positioning.
How important is it?
The agreement's potential impact on affordability and investment in U.S. infrastructure is significant, reflecting Gilead's strategic vision and commitment to the market.
Why Long Term?
The initiative is set to yield benefits beyond 2026, aligning with Gilead's strategic goals of innovation and patient access over time.
Agreement addresses all requests by President Trump to reduce drug costs in the U.S., encourage global investment and protect American biopharma leadership
Company reinforces commitment to U.S. manufacturing and American jobs
Gilead Sciences, Inc. (NASDAQ:GILD) today announced an agreement with the U.S. government designed to reduce drug costs for Americans, reinforcing the company's long-standing commitment to U.S.-based innovation, affordability, and global health leadership.
"This agreement reflects a foundational commitment to both affordability and future innovation, a commitment that we have long seen as essential to shaping the future of healthcare," said Daniel O'Day, Chairman and Chief Executive Officer, Gilead Sciences. "The progress toward expanding access and increasing investment in U.S. innovation will meaningfully contribute to America's health and economic priorities. Gilead Sciences will continue to work with the Administration in service of these priorities for the benefit of generations to come."
As part of the three-year agreement, Gilead addresses all requests by President Trump to implement a new pricing strategy that prioritizes American patients, ensuring the U.S. no longer bears a disproportionate share of global healthcare costs. This includes:
- Discounts on certain existing medicines within the U.S. Medicaid program, similar to what is paid in comparably developed nations, including select medications to treat HIV, Hepatitis C, Hepatitis B and COVID-19.
- Pricing future medicines at parity with other key developed nations.
- Launching a Direct-to-Patient Program where individuals with a prescription can obtain Gilead's Hepatitis C treatment and cure, Epclusa®, at a discounted cash price. Gilead will make Epclusa available via TrumpRx.gov where American patients can be connected directly with Gilead's Direct-to-Patient Program.
- An agreement with the U.S. Department of Commerce to be exempt from Section 232 pharmaceutical tariffs for three years, provided Gilead further invests in manufacturing in the United States.
Based on these terms, the company expects the financial impact to be manageable in 2026 and beyond. Additional terms of the agreement with the U.S. government remain confidential.
This agreement reinforces America's leadership in global health and biomedical innovation and builds upon Gilead's recently announced landmark partnership with the U.S. Department of State to provide its breakthrough HIV prevention medicine, lenacapavir, at no profit to up to two million individuals in the most severely affected countries around the world over the next three years.
Gilead also recently announced it will invest $32 billion in U.S.-based manufacturing, R&D, and infrastructure over the next five years. This investment is projected to generate $43 billion in national economic value and create more than 3,000 direct and indirect jobs.
About Gilead Sciences
Gilead Sciences, Inc. is a biopharmaceutical company that has pursued and achieved breakthroughs in medicine for more than three decades, with the goal of creating a healthier world for all people. The company is committed to advancing innovative medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer, and inflammation. Gilead operates in more than 35 countries worldwide, with headquarters in Foster City, Calif.
Forward-Looking Statements
This press release includes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 that are subject to risks, uncertainties and other factors, including the impact of the agreement with the U.S. government and the Direct-to-Patient Program on Gilead's business, operations and financial condition and results; risks related to the ability to realize the anticipated benefits of the agreement with the U.S. government and the Direct-to-Patient Program, including that patient access and other expected benefits will not be realized or will not be realized within the expected time periods; the uncertainties inherent in research and development; the uncertainties inherent in business and financial planning, including, without limitation, risks related to Gilead's business and prospects, manufacturing expansion and capabilities, adverse developments in Gilead's markets or adverse developments in the U.S. or global capital markets, credit markets, regulatory environment or economies generally; risks and uncertainties related to issued or future executive orders or other new, or changes in, laws or regulations; and competitive developments; and any assumptions underlying any of the foregoing. These and other risks, uncertainties and factors are described in detail in Gilead's Quarterly Report on Form 10-Q for the quarter ended September 30, 2025, as filed with the U.S. Securities and Exchange Commission. These risks, uncertainties and other factors could cause actual results to differ materially from those referred to in the forward-looking statements. All statements other than statements of historical fact are statements that could be deemed forward-looking statements. The reader is cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and is cautioned not to place undue reliance on these forward-looking statements. All forward-looking statements are based on information currently available to Gilead, and Gilead assumes no obligation and disclaims any intent to update any such forward-looking statements.
Epclusa® is a trademark of Gilead Sciences, Inc. or its related companies and the full prescribing information is available at https://www.gilead.com/medicines.
Gilead and the Gilead logo are trademarks of Gilead Sciences, Inc., or its related companies.
For more information about Gilead, please visit the company's website at www.gilead.com, follow Gilead on X/Twitter (@Gilead Sciences) and LinkedIn (@Gilead-Sciences).
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Ashleigh Koss, Media
public_affairs@gilead.com
Jacquie Ross, Investors
investor_relations@gilead.com