Gilead slides as Trump administration puts HIV prevention funds under review

Shares of Gilead Sciences GILD.O fall ~3% to $107 premarket

U.S. health department is reviewing CDC's HIV prevention division for potential overlap with other agencies and might be at risk of a shut down

Brokerage J.P. Morgan says CDC funding cuts are "not a positive" for GILD, but will not impact access to PrEP treatments, as the CDC is "not responsible for providing/reimbursing PrEP drugs, but rather works on PrEP research and education"

PrEP are medications that prevent HIV infection

Brokerage Jefferies does not expect that the potential CDC budget cuts of $1.3 bln will have a major impact on the closely-watched launch of GILD's long-acting PrEP medication lenacapavir

Brokerage BMO Capital says cuts would only "incrementally slow revenue for some HIV treatments" for GILD and to a lesser degree Merck MRK.N

GILD's HIV drugs brough in revenues of $19.6 billion last year, accounting for about 68% of total sales

GILD gained 50.5%, MRK down 22% in the last 12 months