Gilead Sciences, Inc. (GILD, Financial) has disclosed its financial performance for the first quarter, revealing revenue of $6.7 billion, which fell short of the anticipated $6.81 billion. Despite the earnings miss, the company highlighted a robust start to the year, attributed to solid commercial and clinical execution combined with effective expense management strategies.
The company's core operations experienced a 4% year-over-year increase, mainly propelled by the sustained strong performance of Biktarvy. In addition to this growth, Gilead announced favorable topline results from Phase 3 trials involving Trodelvy in combination with pembrolizumab for first-line treatment of PD-L1+ metastatic triple negative breast cancer.
Looking ahead, Gilead is optimistic about maintaining its positive trajectory. A key milestone is the anticipated June PDUFA date for lenacapavir, a promising candidate for HIV prevention, along with ongoing advancements across its varied pipeline. These developments are expected to enhance Gilead's performance as the year progresses.
GILD Key Business Developments
Release Date: February 11, 2025
- Total Product Sales (Excluding Veklury): $26.8 billion for the full year 2024, up 8% year-over-year.
- Fourth Quarter Product Sales (Excluding Veklury): $7.2 billion, up 13% year-over-year.
- HIV Sales: $19.6 billion for the full year 2024, up 8% year-over-year.
- Biktarvy Sales Growth: 13% year-over-year.
- Livdelzi Sales: $30 million in the fourth quarter of 2024.
- Oncology Sales: $3.3 billion for the full year 2024, up 12% year-over-year.
- Trodelvy Sales: $1.3 billion for the full year 2024, up 24% year-over-year.
- Cell Therapy Sales: $2 billion for the full year 2024.
- Veklury Sales: $1.8 billion for the full year 2024, down 18% year-over-year.
- Operating Income: $8.5 billion for the full year 2024.
- Non-GAAP EPS: $4.62 for the full year 2024.
- SG&A Expenses: $5.9 billion for the full year 2024, down 3% year-over-year.
- R&D Expenses: $5.7 billion for the full year 2024, flat year-over-year.
- Dividend Increase: 2.6% increase to $0.79 per share for 2025.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Gilead Sciences Inc (GILD, Financial) reported strong revenue growth, with total product sales excluding Veklury increasing by 8% year-over-year to $26.8 billion.
- The HIV segment showed significant growth, with full-year sales increasing by 8% to $19.6 billion, driven by the success of Biktarvy, which grew 13%.
- The company is making progress in its oncology segment, with Trodelvy sales increasing by 24% year-over-year, highlighting its role in metastatic breast cancer treatment.
- Gilead Sciences Inc (GILD) is advancing its pipeline with promising developments in HIV prevention, including the potential launch of lenacapavir, which has received Breakthrough Therapy designation.
- The liver disease portfolio, including the launch of Livdelzi, contributed to a 9% increase in sales, reflecting strong demand and market acceptance.
Negative Points
- The anticipated impact of Medicare Part D reform is expected to affect 2025 revenue by approximately $1.1 billion, with $900 million impacting the HIV segment.
- Veklury sales declined by 53% year-over-year in the fourth quarter, reflecting lower COVID-19 hospitalizations and contributing to overall revenue headwinds.
- Competitive dynamics in the cell therapy market pose challenges, with new launches affecting sales growth in the US and Europe.
- The company faces potential litigation costs related to promotional speaker programs for HIV medicines, impacting SG&A expenses.
- Foreign exchange headwinds are expected to offset approximately 1% of expected growth in 2025, adding to the financial challenges.
