Gilead Sciences has announced a new round of layoffs, drawing significant attention in the pharmaceutical industry. According to the WARN (Worker Adjustment and Retraining Notification) filings, the company will lay off 104 employees at its Foster City headquarters, effective March 2025. This move follows the recent closure of its Seattle office, affecting 72 employees, and plans to close a Kite Pharma facility in Philadelphia by mid-2025.
Despite these adjustments, Gilead reports strong global business performance, with clinical research progressing well. The company emphasizes that these changes aim to align resources with long-term strategic goals.
In its Q3 2024 financial report, Gilead disclosed revenues of $75.45 billion, a 7% year-over-year increase, primarily driven by strong sales in the HIV, oncology, and liver disease sectors. HIV treatments remain the main revenue source, with Biktarvy sales rising by 13% to $34.72 billion and Descovy sales increasing by 15% to $5.86 billion, reinforcing Gilead's market position in HIV treatment.
Gilead's lenacapavir has shown promising results in preventing HIV infection, with a 99.9% success rate in its second Phase III trial. The FDA has recognized lenacapavir as a breakthrough therapy for pre-exposure prophylaxis (PrEP), and Gilead plans to submit global regulatory applications by the end of the year.
In oncology, Gilead's revenue reached $8.16 billion, up 6% from the previous year. Trodelvy sales grew by 17% to $3.32 billion, although the drug faced setbacks in trials for new indications, including metastatic non-small cell lung cancer and urothelial carcinoma.
Gilead recently acquired CymaBay Therapeutics for $3.9 billion, impacting its cash flow, which decreased from $8.428 billion to $5.037 billion by September 2024. To manage financial pressures, Gilead has reduced R&D expenses, focusing on successful projects while phasing out unsuccessful ones.
Gilead plans to launch six potential new products by 2030, starting with lenacapavir for HIV prevention in 2025. In China, the company is investing in local R&D, aiming to gain approval for four oncology indications by 2027.
Gilead remains committed to enhancing the accessibility of innovative therapies and exploring new business models to maintain competitiveness in the evolving pharmaceutical landscape.
