On February 11, 2025, Gilead Sciences Inc (GILD, Financial) released its 8-K filing detailing the financial results for the fourth quarter and full year of 2024. Gilead Sciences, a biopharmaceutical company, is renowned for developing therapies for life-threatening infectious diseases, with a strong focus on HIV and hepatitis B and C. The company is also expanding its oncology portfolio through strategic acquisitions.
Performance Overview
Gilead Sciences Inc (GILD, Financial) reported a 6% increase in total revenue for the fourth quarter of 2024, reaching $7.6 billion, driven by higher sales in HIV, Oncology, and Liver Disease. This performance is significant as it highlights the company's ability to maintain growth despite challenges such as declining sales of Veklury® (remdesivir) due to reduced COVID-19 hospitalizations.
Financial Achievements
The company's diluted earnings per share (EPS) for the fourth quarter rose to $1.42, exceeding the analyst estimate of $1.16. Non-GAAP diluted EPS also increased to $1.90, reflecting strong product sales and lower acquired in-process research and development expenses. These achievements underscore Gilead's operational efficiency and strategic focus on high-demand therapeutic areas.
Key Financial Metrics
Gilead Sciences Inc (GILD, Financial) ended the year with $10.0 billion in cash, cash equivalents, and marketable debt securities, up from $8.4 billion at the end of 2023. The company generated $3.0 billion in operating cash flow during the fourth quarter, demonstrating robust liquidity. Additionally, Gilead issued $3.5 billion in senior unsecured notes and returned $973 million to shareholders through dividends.
Product Sales and Market Dynamics
Fourth-quarter product sales increased by 7% to $7.5 billion, with HIV product sales rising 16% to $5.5 billion. Biktarvy® sales surged 21% to $3.8 billion, driven by higher demand and favorable pricing. Oncology sales also saw a 12% year-over-year increase, reaching $3.3 billion for the full year. However, Veklury sales declined by 53% due to lower COVID-19 hospitalizations.
Income Statement Highlights
Gilead's product gross margin improved to 79.0% in the fourth quarter, up from 70.4% in the same period in 2023. Research and development expenses increased to $1.6 billion, reflecting investments in clinical activities. The effective tax rate rose to 17.8%, influenced by prior year settlements and unrealized equity investment losses.
Analysis and Outlook
Gilead Sciences Inc (GILD, Financial) has demonstrated resilience and strategic foresight in navigating market challenges. The company's focus on expanding its HIV and oncology portfolios positions it well for future growth. The potential launch of lenacapavir for HIV PrEP in 2025 could further enhance its market presence. However, the decline in Veklury sales and increased operating expenses remain areas to monitor.
| Metric | Q4 2024 | Q4 2023 |
|---|---|---|
| Total Revenue | $7.6 billion | $7.2 billion |
| Diluted EPS | $1.42 | $1.14 |
| Non-GAAP Diluted EPS | $1.90 | $1.72 |
| Cash and Equivalents | $10.0 billion | $8.4 billion |
Gilead Sciences Inc (GILD, Financial) continues to leverage its strong portfolio and strategic acquisitions to drive growth. Investors and stakeholders will be keenly observing the company's ability to sustain this momentum and capitalize on emerging opportunities in the biopharmaceutical landscape.
Explore the complete 8-K earnings release (here) from Gilead Sciences Inc for further details.
