Gilead stock popped but pulled back from steeper gains Monday after the biotech giant said it signed deals with three generic-drug makers to delay their Biktarvy copycats for two years.
RBC Capital Markets analyst Brian Abrahams called the news a "solid win for GILD to extend their HIV life cycle."
Biktarvy is, by far, Gilead Sciences' biggest moneymaker. The HIV treatment brought in $3.53 billion in second-quarter sales. That accounted for more than 69% of the company's HIV sales.
Under the deal, generic-drug makers Lupin, Laurus Labs and Cipla will wait until April 2036 to launch their copycat versions of Biktarvy. That extends Biktarvy's hold on the market well beyond the loss of its patent protection in December 2033.
Gilead Stock Jumps, But More Litigation Looms
There are three other generic-drug makers, though, that are champing at the bit, Abrahams said. So, there could be more litigation in the near term.
Still, in morning trades Gilead stock jumped almost 4%. At the close, however, shares settled with a fractional gain at 113.58. Gilead stock is forming a flat base with a buy point at 121.83, according to MarketSurge.
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