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    What Gilead Sciences (GILD)'s OncoNano Drug-Encapsulation Deal Means For Shareholders

    Simply Wall St·01/07/2026 21:40:43
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    • OncoNano Medicine recently announced a research collaboration with Gilead Sciences to test its ON-BOARD encapsulation technology with a Gilead drug candidate, with OncoNano receiving an upfront payment plus potential preclinical, development, regulatory and commercial milestones, and royalties tied to future net sales.
    • The agreement also gives Gilead an option to nominate an additional target that could take total potential upfront and milestone payments to as much as US$300.00 billion, underscoring how both partners are exploring advanced delivery technologies to potentially enhance the performance of Gilead’s pipeline assets.
    • We’ll now examine how this new ON-BOARD drug-encapsulation collaboration could influence Gilead’s investment narrative around innovation and pipeline diversification.

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    Gilead Sciences Investment Narrative Recap

    To own Gilead, you generally need to believe that its HIV and oncology franchises can offset policy, pricing and patent risks while management broadens the pipeline. The OncoNano ON-BOARD collaboration is directionally positive for that innovation story but is unlikely to change the most important near term catalysts or the key risk around execution in oncology and HIV diversification in a material way on its own.

    Among recent announcements, Gilead’s three year U.S. drug cost reduction plan from December 2025 is most relevant here, because it directly highlights the pricing and policy pressures that sit alongside any new pipeline initiatives like the OncoNano tie up and could influence how much economic value future encapsulated or next generation therapies ultimately retain.

    Yet behind the innovation headlines, investors also need to stay alert to mounting pricing pressure and its potential to...

    Read the full narrative on Gilead Sciences (it's free!)

    Gilead Sciences' narrative projects $32.3 billion revenue and $10.0 billion earnings by 2028. This requires 3.8% yearly revenue growth and about a $3.7 billion earnings increase from $6.3 billion today.

    Uncover how Gilead Sciences' forecasts yield a $130.63 fair value, a 8% upside to its current price.

    Exploring Other Perspectives

    GILD 1-Year Stock Price Chart
    GILD 1-Year Stock Price Chart

    While the consensus view stays cautious on growth and margins, the most optimistic analysts once projected revenue near US$33.9 billion and earnings of US$10.8 billion, so this kind of drug delivery deal could either support that stronger story or reinforce concerns about how dependent it is on new launches actually working out.

    Explore 10 other fair value estimates on Gilead Sciences - why the stock might be worth 12% less than the current price!

    Build Your Own Gilead Sciences Narrative

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    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.