Gilead, cancer test makers up after U.S. top court ruling on preventative coverage

Shares of Gilead Sciences GILD.O rise 2.8% to $110.62

U.S. Supreme Court rules in favor of Obamacare preventive care task force

The task force helps guarantee that health insurers cover preventive care such as cancer screenings at no cost to patients

Cancer test makers such as Exact Sciences EXAS.O up 3.8% at $53.77 and Guardant Health GH.O up 2.9%

Labcorp Holdings LH.N, which offers cancer tests, is up 1.5% at $260.73

The justices in a 6-3 decision reversed the lower court's ruling on Friday which will likely help in allaying investor fears on insurance coverage for PrEP or pre-exposure prophylaxis drugs

PrEP drugs are approved in the U.S. to prevent HIV infection which are made by Gilead and by ViiV Healthcare, a joint venture of GSK GSK.L, Pfizer PFE.N and Shionogi 4507.T

"We see somewhat larger uncertainty regarding commercial coverage of Gilead's recently approved twice-yearly injectable HIV PrEP, Yeztugo (lenacapavir)," Leerink Partner says

Evercore ISI says if patient copays lowered testing volume, then it would impact companies such as Exact Sciences EXAS.O, which has the colorectal cancer test Cologuard

"We think this marks the turn for EXAS shares," Evercore ISI adds

Including session's move, GILD up 19.6%, EXAS down 4%, LH up 13.7%, GH up 67.8% YTD