Q4 2024 Gilead Sciences Inc Earnings Call Transcript
Key Points
- Gilead Sciences Inc (GILD) 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.
- 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.
Good afternoon, everyone, and welcome to Gilead's fourth quarter and full year 2024 earnings conference call. My name is Rebecca, and I'll be today's host. In a moment, we'll begin our prepared remarks, followed by our Q&A session. (Operator Instructions)
Now I'll hand the call over to Jacquie Ross, Senior Vice President of Treasury and Investor Relations.
Thank you, Rebecca. Just after market closed today, we issued a press release with earnings results for the fourth quarter and full year of 2024. The press release, slides and supplementary data are available on the Investors section of our website at gilead.com.
The speakers on today's call will be our Chairman and Chief Executive Officer, Daniel O'Day; our Chief Commercial Officer, Johanna Mercier; our Chief Medical Officer, Dietmar Berger; and our Chief Financial Officer, Andrew Dickinson., After that, we'll open the call to Q&A where the team will be joined by Cindy Perettie, the Executive Vice President of Kite.
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