NEW YORK (TheStreet) -- Gilead Sciences (GILD) shares are up 3.9% to $67.98 in trading on Friday.
The bump follows a Reuters report that the Texas Health and Human Services Commission (THHSC) will reconsider its restrictive recommendation to Medicaid concerning Gilead Science's hepatitis C drug treatment, Sovaldi, due to the drug's high costs.
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The THHSC had previously recommended that the state's Medicaid program restrict use of the drug to only the sickest patients with advanced stages of liver damage due to hepatitis C.
Gilead has faced pressure from legislators and insurance groups to lower the cost of the drug.
While the effectiveness of the drug has not been questioned, state Medicaid programs across the country have balked at its $84,000 per 12 week treatment sticker price.
Meanwhile Sovaldi continues to impress in drug trials while boasting a 90% cure rate.
Sales of the drug are expected to reach $10 billion worldwide this year.
TheStreet Ratings team rates GILEAD SCIENCES INC as a Buy with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate GILEAD SCIENCES INC (GILD) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance, reasonable valuation levels, expanding profit margins and increase in net income. We feel these strengths outweigh the fact that the company has had generally high debt management risk by most measures that we evaluated."