Bernstein SocGen Group reiterated its Outperform rating and $135 price target on Gilead Sciences (NASDAQ: GILD), citing limited financial exposure to recent Medicaid pricing developments.

The firm highlighted language indicating that only certain products, representing about 60% of Gilead's portfolio, were aligning with MFN pricing for Medicaid. Following discussions with the company, Bernstein confirmed that the primary products affected were Genvoya and Odefsey, which together generated approximately $750 million in Medicaid gross spend in 2023.

The analyst said this confirmation alleviated concerns around Medicaid pricing risk for Biktarvy, which Bernstein had viewed as the key area of uncertainty. As anticipated, the firm said negotiations resulted in a favorable outcome, with estimated 2026 revenue impact expected to be minimal, less than $200 million for Genvoya and Odefsey combined and in the low single-digit percentage range for the overall company.