Gilead Sciences Inc (NASDAQ:GILD) stock is trading lower during the premarket trading session on Wednesday.

According to a Tuesday report in the Wall Street Journal, the Health and Human Services Department (HHS) is considering substantial reductions in federal funding for domestic HIV prevention.

According to people familiar with the matter, the WSJ reports that the plans could be announced within a day. However, they are not final and could still be changed or canceled.

Also Read: Gilead Presents New HIV Treatment And Cure Research Data

The Centers for Disease Control and Prevention (CDC) has a department focused on preventing HIV and other infectious diseases. It provides funding for state and local programs, including HIV tracking, syringe services, and community outreach, the WSJ writes.

Meanwhile, the Trump administration is planning significant staff cuts at the CDC as part of a broader reorganization, according to WSJ sources. The agency's structure makes it vulnerable to such changes since no single law defines its mission or programs.

Mitchell Warren, executive director of HIV prevention group AVAC, says the CDC's pre-exposure prophylaxis (PrEP) program could be reduced or cut. Launched last fall as a pilot program, it provides free medication to help prevent HIV.

PrEP is used by people who are HIV-negative and at high risk of being exposed to HIV infection.

"No final decision on streamlining CDC's HIV Prevention Division has been made," the WSJ report added, citing the department's spokesman.

Gilead filed for regulatory approval of lenacapavir for PrEP (twice a year) last year and expects a potential commercial launch in 2025. 

Price Action: At the last check on Wednesday, GILD stock was down 2.02% at $108 during the premarket session.

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