Cancer screening firms Guardant Health (NASDAQ:GH), Exact Sciences (NASDAQ:EXAS), and Labcorp (NYSE:LH), as well as HIV drugmaker Gilead (NASDAQ:GILD), traded higher on Friday after the Supreme Court upheld a key Obamacare provision that required insurers to cover preventive services at no cost to patients.
In a 6-3 decision, the Supreme Court justices struck down a lower court ruling which found in 2024 that the U.S. Preventive Services Task Force, introduced under the Affordable Care Act, also known as Obamacare, in 2010, comprised invalid appointees.
The appointment of USPSTF members is consistent with the U.S. Constitution, the court found, a move that could boost providers of preventative healthcare services such as cancer screenings and HIV pre-exposure prophylaxis.
“SCOTUS ruled against Braidwood in the Kennedy v. Braidwood case, which means HIV PrEP will remain on the mandated coverage list,” Bloomberg News reported, quoting Jefferies analyst Michael Yee.
He argued that the ruling removes a key overhang for the antiviral drugmaker ahead of its upcoming launch of the recently approved twice-yearly injectable HIV PrEP therapy Yeztugo. Yee reiterated his Buy rating and $130 per share target on GILD.
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