Health Care ETFs Remain Unfazed by Price Reductions from Major Pharmaceutical Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Dec 19 2025
0mins
Should l Buy GILD?
Source: Benzinga
Impact of Drug Pricing Deals: Big pharmaceutical companies are negotiating with the U.S. government to lower Medicaid drug prices, but analysts believe the financial impact on these companies may be less severe than initially feared.
Medicaid's Role in Drug Pricing: Medicaid accounts for about 10% of U.S. prescription drug spending and often secures significant discounts, which helps mitigate concerns over pricing pressures on pharmaceutical companies.
Resilience of Health Care ETFs: Diversified health care ETFs, such as the Health Care Select Sector SPDR Fund and Vanguard Health Care ETF, are performing well and provide a buffer against potential volatility from drug pricing news.
Pharma-Specific ETFs and Diversification: While specialized pharmaceutical ETFs may face more direct impacts from pricing negotiations, their diversified structures help reduce risks associated with individual companies, allowing them to remain stable amidst market fluctuations.
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Analyst Views on GILD
Wall Street analysts forecast GILD stock price to rise
19 Analyst Rating
16 Buy
3 Hold
0 Sell
Strong Buy
Current: 136.300
Low
105.00
Averages
137.88
High
154.00
Current: 136.300
Low
105.00
Averages
137.88
High
154.00
About GILD
Gilead Sciences, Inc. is a biopharmaceutical company. It is engaged in advancing medicines to prevent and treat life-threatening diseases, including HIV, viral hepatitis, COVID-19, cancer, and inflammation. It is focused on discovering, developing, and delivering medicines to address unmet medical needs in virology, oncology, and other therapeutic areas. Its portfolio of marketed products includes AmBisome, Atripla, Biktarvy, Cayston, Complera, Descovy, Descovy for PrEP, Emtriva, Epclusa, Eviplera, Genvoya, Harvoni, Hepcludex, Hepsera, Jyseleca, Letairis, Livdelzi/Lyvdelzi, Odefsey, Sovaldi, Stribild, Sunlenca, Tecartus, Trodelvy, Truvada for PrEP, and others. It also sells and distributes authorized generic versions of Epclusa and Harvoni in the United States through its subsidiary, Asegua Therapeutics LLC. It has control on anitocabtagene autoleucel (anito cel), an investigational BCMA-directed CAR T cell therapy for multiple myeloma. It operates in over 35 countries worldwide.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Overall Sales Projection Upgraded: The company raised its overall 2026 sales outlook by $400 million to a range of $30 billion to $30.4 billion, reflecting confidence in future product lines despite facing financial costs related to acquisitions.
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