Gilead’s New HIV Drug ‘Yeztugo’ Shakes Up Market as GSK Prepares to Compete

Gilead's Chances Peak Until GSK’s Response to the Competition

Announcement

Gilead’s new PreP drug, ‘Yeztugo’, is said to be reaching sales of $4.5 billion, if GSK doesn’t have anything to say about its Apretude medication. Gilead is strengthening its position in the HIV market. With the approval of the HIV prevention product ‘Yeztugo’ (twice yearly), the company is attracting more market share from generics and GSK manufacturers.

HIV Medications

Gilead’s new product earned $19.6 billion last year. Last year, Biktarvy medication, which treats HIV, was a part of the portfolio that earned $13.4 billion. Gilead’s introduction to another HIV product, ‘Descovy’, earned $2.1 billion last year. Descovy is a competitor to GSK’s apretude. Apretude is an injectable medication in the pre-exposure prophylaxis (PrEP) market (given every 2 months). To Descovy’s earnings in April, Gilead's chief commercial officer, Johanna Mercier, said, ‘The earnings lead to 40% market share and an increase of more than 2% year-over-year.’

One of the HIV doctors informed Mizuho analysts that around 45% to 50% of 125 PrEP patients are under Descovy medication, and one-third of the patients take Apretude. In the northeast US, the average could range between 20% to 25%, which is slightly different from the commercial insurance rate of individual practices. 20% of patients prefer Truvada, an old PrEP drug of Gilead, or a generic drug of the off-patent molecule.

Gilead V/S GSK

Gilead’s CEO, Daniel O’day, underlined the statement at the Goldman Sachs event in June that, “Gilead will first convert 400,000 to 450,000 PrEP users to Yeztugo in the US. This new drug will enhance the treatment tractability.” Further, “The second group of target patients in the US is 750,000 to 800,000 who will be treated under PrEP, but will not consume a drug to prevent HIV. It is found that most of the PrEP users are men having sex with the same gender, covering the largest urban areas. We have not yet been completely able to reach out to other groups at risk.” O’day also added, ‘It might take time to spread awareness and bolster demand among less explored communities.’

Analyzing the current market size of the HIV treatment and prevention, GSK still stands a chance to expand its franchise despite Gilead’s dominance in the market. GSK’s plan to introduce twice-yearly HIV treatment in the year between 2028 and 2030 will be similar to Yeztugo, sharing the same timeframe. GSK’s pipeline VH184 consists of an excellent profile. The compilation of this profile and drug candidates is a part of GSK’s plan.