Core Viewpoint - Gilead Sciences, Inc. reported disappointing first-quarter 2025 results, with adjusted earnings per share (EPS) of $1.81 and total revenues of $6.7 billion, both missing consensus estimates [1][2][3] Financial Performance - Adjusted EPS of $1.81 missed the Zacks Consensus Estimate by a penny, compared to a loss per share of $1.32 in the same quarter last year [1] - Total revenues of $6.7 billion were flat year over year and missed the Zacks Consensus Estimate of $6.8 billion [1] - Total product sales decreased 1% year over year to $6.6 billion, while excluding Veklury, product sales increased 4% to $6.3 billion [3] Product Sales Breakdown - HIV product sales grew 6% year over year to $4.6 billion, exceeding both the Zacks Consensus Estimate and model estimate of $4.5 billion [3] - Biktarvy sales increased 7% year over year to $3.15 billion but missed the Zacks Consensus Estimate of $3.2 billion [4] - Descovy sales surged 38% year over year to $586 million, beating the Zacks Consensus Estimate of $479 million [5] - Liver Disease portfolio sales rose 3% to $758 million, driven by higher demand for HBV and HDV drugs [6] - Veklury sales plummeted 45% to $302 million, missing the Zacks Consensus Estimate of $387 million [7] - Cell Therapy product sales decreased 3% to $464 million, missing the Zacks Consensus Estimate of $491 million [7] Cost and Margin Analysis - Adjusted product gross margin slightly increased to 85.5% from 85.4% in the year-ago quarter [11] - Research and development expenses totaled $1.3 billion, down from $1.4 billion in the previous year [11] - SG&A expenses amounted to $1.2 billion, down from $1.3 billion [11] Dividend and Guidance - Gilead declared a quarterly dividend of $0.79 per share for Q2 2025, payable on June 27, 2025 [12] - The company reiterated its 2025 guidance, projecting product sales between $28.2 billion and $28.6 billion, with adjusted EPS anticipated in the range of $7.70-$8.10 [13] Pipeline Updates - The FDA accepted new drug application submissions for lenacapavir for HIV prevention, with a target action date of June 19, 2025 [14] - Gilead received conditional marketing authorization for seladelpar for the treatment of primary biliary cholangitis [14] Overall Performance Assessment - Gilead's first-quarter results were disappointing, particularly due to a decline in oncology drugs affecting revenue growth [15] - Despite challenges, Biktarvy maintained its dominant position in the HIV market, and Descovy showed strong performance [15] - The potential approval of lenacapavir could further strengthen Gilead's HIV franchise amid increasing competition [16]

Group 1: AbbVie Inc (NYSE:ABBV) - AbbVie reported adjusted first-quarter earnings of $2.46 per share on $13.3 billion in revenue, exceeding analyst expectations [2] - The company raised its full-year outlook, projecting $16.5 billion in sales for its psoriasis drug Skyrizi [2] - AbbVie shares are up 1.1% to $182.53, and are now 10% higher over the last 12 months despite a 12% pullback this quarter [2][3] Group 2: Options Activity for AbbVie - Over 9,000 call options for AbbVie have been traded, which is quadruple the average intraday volume [4] - The most popular option is the weekly 4/25 190-strike call, with new positions being opened at the weekly 5/2 200-strike call [4] Group 3: Gilead Sciences Inc (NASDAQ:GILD) - Gilead's first-quarter revenue of $6.7 billion fell short of the forecasted $6.8 billion, leading to a 3.9% drop in share price to $102.45 [5] - RBC and Morgan Stanley raised their price targets to $92 and $135, while Oppenheimer lowered its target from $132 to $125 [5] - Gilead shares are 11% higher year-to-date but have been consolidating below the all-time high of $119.96 [6] Group 4: Options Activity for Gilead - Gilead call options are trading at five times the average intraday volume, with notable sell-to-open activity in the weekly 5/2 109-strike call [6] - The weekly 4/25 108-strike call is also seeing significant activity, expiring at the close today [6]

Financial Data and Key Metrics Changes - The base business, excluding Veclury, grew 4% year over year, primarily driven by growth in the HIV business [6][50] - Total product sales, including Veclury, were down by 1% from last year, reflecting fewer COVID-19 related hospitalizations [8][50] - Non-GAAP diluted EPS was $1.81, with a product gross margin flat year over year at 85% [52][54] Business Line Data and Key Metrics Changes - HIV sales were up 6% year over year, with Biktarvy sales increasing by 7% [7][22] - Livedelzi achieved first-quarter sales of $40 million, reflecting early momentum in its launch [27] - Veclury sales were down 45% year over year, reflecting lower rates of COVID-19 related hospitalizations [28] - Trodelvy sales were down 5% year over year, impacted by inventory dynamics and lower average realized price [29][98] - Cell therapy sales were down 3% year over year, with Yescarta sales up 2% year over year [31] Market Data and Key Metrics Changes - The HIV treatment market continues to grow at an expected rate of 23% annually [22] - Descovy sales increased by 38% year over year, driven by higher average realized price and demand [23][78] - The liver disease segment saw sales of $758 million, up 3% year over year [26] Company Strategy and Development Direction - The company is focused on multiple upcoming launches, including lenacapavir, anetocel, and Trodelvy [13][34] - Gilead Sciences, Inc. has no major loss of exclusivity (LOE) until the end of 2033, positioning itself for top-line growth across therapeutic areas [14] - The company is increasing investment in US manufacturing and R&D infrastructure [15][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming FDA decision on lenacapavir for PrEP, with a potential launch immediately following [9][38] - The company remains well-positioned to adapt to potential policy outcomes in the US [14] - Management noted that the first quarter was lighter than expected but emphasized the variability of the business [54][93] Other Important Information - Gilead Sciences, Inc. received an upgrade in its long-term debt rating from BBB+ to A- [58] - The company returned $1.7 billion to shareholders in the first quarter of 2025 through dividends and share repurchases [58] Q&A Session Summary Question: Expectations for lenacapavir for PrEP and reimbursement dynamics - Management is excited about the upcoming PDUFA date and expects around 75% access within the first six months post-launch, reaching about 90% at the twelve-month mark [62] Question: Impact of HHS and CDC cuts on launch dynamics - Management has not seen anything that would alter plans for the lenacapavir launch and is actively engaging with policymakers [68] Question: Implications of COVID-19 on Descovy and lenacapavir - Descovy saw a 38% growth year over year, driven by market development initiatives, which supports the opportunity for lenacapavir [78] Question: Tariff risks and US market supply - Management indicated that the majority of Gilead's IP is in the US, which suggests lower value for pharmaceutical imports, and they have invested significantly in US manufacturing [86][89] Question: Cannibalization of Descovy by lenacapavir - Management believes lenacapavir will attract both switch patients from daily orals and naive patients, potentially accelerating market growth [124]

Financial Data and Key Metrics Changes - The base business, excluding Veclury, grew by 4% year-over-year, primarily driven by growth in the HIV business [6][50] - Total product sales, including Veclury, decreased by 1% year-over-year, reflecting fewer COVID-19 related hospitalizations [8][50] - Non-GAAP diluted EPS was reported at $1.81 [56] Business Line Data and Key Metrics Changes - HIV sales increased by 6% year-over-year, with Biktarvy sales up by 7% [7][19] - Livedelzi achieved first-quarter sales of $40 million, reflecting early momentum in its launch [27] - Veclury sales were down 45% year-over-year, totaling $302 million [28] - Trodelvy sales decreased by 5% year-over-year, totaling $293 million [29] - Cell therapy sales were down 3% year-over-year, totaling $464 million [31] Market Data and Key Metrics Changes - The HIV treatment market is expected to grow at an annual rate of 23% [22] - Descovy sales increased by 38% year-over-year, driven by higher average realized price and demand [23] - The liver disease segment saw sales of $758 million, up 3% year-over-year [26] Company Strategy and Development Direction - The company plans to launch multiple products, including lenacapavir and anetocel, to drive growth in HIV and oncology [14][34] - Gilead Sciences, Inc. has no major loss of exclusivity (LOE) until the end of 2033, positioning it well for sustained growth [14] - The company is increasing investments in US manufacturing and R&D infrastructure [15][89] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the upcoming FDA decision on lenacapavir for PrEP, with a potential launch immediately following [9][38] - The company remains focused on expense management and expects to adapt to macroeconomic changes [56][57] - Management noted that the average corporate tax rate is approximately 20%, reflecting a strong US investment [14] Other Important Information - Gilead Sciences, Inc. received an upgrade in its long-term debt rating from BBB+ to A- [58] - The company has returned $1.7 billion to shareholders in the first quarter of 2025 through dividends and share repurchases [58] Q&A Session Summary Question: Expectations for lenacapavir for PrEP - Management is excited about the upcoming PDUFA date and anticipates building access to about 75% within the first six months post-launch [62] Question: Impact of HHS and CDC cuts on launch - Management has not seen any changes that would affect the launch plans for lenacapavir for PrEP [68] Question: Implications of COVID-19 on Descovy sales - Descovy saw a 38% year-over-year growth, driven by higher average realized price and demand, which supports the opportunity for lenacapavir [77] Question: Tariff risks and US market supply - Management indicated that the majority of Gilead's profits are recognized in the US, which mitigates tariff risks [86] Question: Impact of lenacapavir on Descovy sales - Management believes lenacapavir will provide a switch strategy for patients currently on daily oral medications, potentially accelerating market growth [124]

Core Viewpoint - Gilead Sciences reported quarterly earnings of $1.81 per share, slightly missing the Zacks Consensus Estimate of $1.82 per share, but showing improvement from a loss of $1.32 per share a year ago [1][2] Financial Performance - The company posted revenues of $6.67 billion for the quarter ended March 2025, which was 2.46% below the Zacks Consensus Estimate and a slight decrease from $6.69 billion in the same quarter last year [2] - Over the last four quarters, Gilead has surpassed consensus EPS estimates three times and topped consensus revenue estimates three times as well [2] Stock Performance - Gilead shares have increased by approximately 15.2% since the beginning of the year, contrasting with the S&P 500's decline of 8.6% [3] - The stock currently holds a Zacks Rank of 3 (Hold), indicating expected performance in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $2.01 on revenues of $6.98 billion, while for the current fiscal year, the estimate is $7.92 on revenues of $28.71 billion [7] - The outlook for the Medical - Biomedical and Genetics industry is positive, ranking in the top 32% of over 250 Zacks industries, suggesting potential for outperformance [8]

Financial Performance - Total product sales, excluding Veklury, increased by 4% year-over-year (YoY) to $6.3 billion[9, 13] - Total HIV product sales increased by 6% YoY, driven by pricing and demand, reaching $4.6 billion[9, 13] - Biktarvy sales increased by 7% YoY, reaching $3.1 billion[9, 17] - Descovy sales increased significantly by 38% YoY, reaching $586 million[9, 17] - Liver disease product sales increased by 3% YoY, reaching $758 million, driven by increased demand across PBC, HBV, and HDV products[13, 20] - Veklury sales decreased by 45% YoY to $302 million, reflecting lower COVID-19 related hospitalizations[13, 23] - Cell Therapy product sales decreased by 4% YoY to $464 million[13] Product & Pipeline Updates - Trodelvy sales decreased by 5% YoY to $293 million due to inventory dynamics and pricing[9, 13] - Livdelzi sales reached $40 million in Q125, showing continued launch momentum in PBC[9, 19] - Positive topline Phase 3 ASCENT-04 data evaluating Trodelvy + pembrolizumab in 1L PD-L1+ mTNBC[9] - Livdelzi received EU approval in February 2025 for PBC, including related pruritus[9, 38]

Financial Performance - Total product sales for Q1 2025 decreased 1% to $6.6 billion compared to Q1 2024, while product sales excluding Veklury increased 4% to $6.3 billion[4] - Total revenues for Q1 2025 were $6,667 million, a slight decrease of 0.3% compared to $6,686 million in Q1 2024[27] - Product sales decreased by 1% to $6,613 million in Q1 2025 from $6,647 million in Q1 2024, with significant declines in Veklury sales, which dropped 45% to $302 million[29] - Operating income for Q1 2025 was $2,237 million, a significant recovery from an operating loss of $4,322 million in Q1 2024[27] - Net income attributable to Gilead for Q1 2025 was $1,315 million, compared to a net loss of $4,170 million in Q1 2024[27] - GAAP net income attributable to Gilead for Q1 2025 was $1,315 million, compared to a loss of $4,170 million in Q1 2024[33] - Non-GAAP net income attributable to Gilead for Q1 2025 was $2,285 million, while it was a loss of $1,644 million in Q1 2024[33] - Diluted EPS for Q1 2025 was $1.04, a significant increase from $(3.34) in Q1 2024, primarily due to prior year charges that did not repeat[6] - Non-GAAP diluted EPS for Q1 2025 was $1.81, compared to $(1.32) in the same period in 2024, driven by the prior year IPR&D expense related to the CymaBay acquisition[6] - Gilead expects full-year 2025 product sales to be between $28.2 billion and $28.6 billion, unchanged from prior guidance[12] - Gilead anticipates diluted EPS for 2025 to be between $5.65 and $6.05, revised from a previous range of $5.95 to $6.35[12] Sales Performance by Product - HIV product sales increased 6% to $4.6 billion in Q1 2025, driven by higher average realized price and demand, with Biktarvy sales rising 7% to $3.1 billion[5] - Veklury sales decreased 45% to $302 million in Q1 2025, primarily due to lower rates of COVID-19 related hospitalizations[8] - Biktarvy sales in the U.S. reached $2,474 million, showing a significant increase compared to $2,315 million in the same period last year[40] - Total HIV sales in the U.S. amounted to $3,664 million, up from $3,405 million year-over-year, reflecting a growth of approximately 7.6%[40] - Total HIV sales in Europe were $5,535 million, compared to $5,596 million in the previous year, indicating a slight decline of about 1.1%[40] - Genvoya sales in the U.S. were $305 million, while in Europe, they reached $404 million, demonstrating strong performance in both markets[40] - The total sales for liver disease products in the U.S. were $3,353 million, with Europe contributing $1,681 million, showcasing robust demand[40] - The company reported a total of $1,993 million in sales for Veklury in the U.S., with European sales at $2,270 million, highlighting its continued market presence[40] - The overall revenue from other HIV products in the U.S. was $506 million, with European sales at $314 million, indicating stable performance[40] - The total revenue from liver disease products worldwide was $2,562 million, reflecting the company's strong position in this therapeutic area[40] Research and Development - Research and development expenses were $1.4 billion in Q1 2025, down from $1.5 billion in the same period in 2024[11] - Acquired in-process research and development expenses were significantly reduced to $253 million in Q1 2025 from $4,131 million in Q1 2024, a decrease of 94%[31] - Gilead Sciences is focusing on enhancing its research and development efforts to innovate new therapies and improve patient outcomes[41] Cash Flow and Assets - Gilead generated $1.8 billion in operating cash flow during Q1 2025 and paid dividends of $1.0 billion[6] - Total assets as of March 31, 2025, were $56,434 million, down from $58,995 million as of December 31, 2024[36] - Cash and cash equivalents decreased to $7,926 million as of March 31, 2025, from $9,991 million at the end of 2024[36] - Net cash provided by operating activities for Q1 2025 was $1,757 million, down from $2,219 million in Q1 2024[38] - Free cash flow for Q1 2025 was $1,653 million, compared to $2,114 million in Q1 2024[38] Taxation - The effective tax rate for Q1 2025 was 20.2%, compared to 7.0% in the same period in 2024[11] - The effective tax rate for Q1 2025 was 20.2%, compared to a negative effective tax rate of 7.0% in Q1 2024[27] - Projected non-GAAP effective tax rate for 2025 is approximately 19%[34] Market Outlook - The company anticipates continued growth in its HIV portfolio, driven by new product launches and market expansion strategies[41] - The company continues to focus on expanding its oncology portfolio and enhancing its cell therapy offerings[43]

The first-quarter 2025 earnings season for the Medical sector is about to pick up pace this week. The sector mainly comprises pharma/biotech and medical device companies. The earnings season for the drug and biotech sector was kicked off last week when bellwether Johnson & Johnson reported strong first-quarter results, beating the estimates for its earnings and sales. JNJ also slightly raised its sales guidance range for the year. Most of the remaining large-cap pharmaceutical companies will report their fi ...

Company Overview - Gilead Sciences is a pioneer in developing drugs for the treatment of human immunodeficiency virus (HIV) and has a broad portfolio that includes drugs for liver diseases, hematology/oncology diseases, and inflammation/respiratory diseases [12] - The company's flagship treatment, Biktarvy, is driving growth within its strong HIV franchise, which generated total sales of $19.6 billion in 2024, reflecting an 8% year-over-year increase [12] Financial Performance - For fiscal 2025, five analysts have revised their earnings estimates upwards in the last 60 days, with the Zacks Consensus Estimate increasing by $0.06 to $7.86 per share [13] - Gilead Sciences has an average earnings surprise of 19.5%, indicating a strong performance relative to expectations [13] Investment Ratings - Gilead Sciences currently holds a 3 (Hold) rating on the Zacks Rank, with a VGM Score of B, suggesting a solid overall performance [13][14] - The company also has a Value Style Score of B, supported by attractive valuation metrics such as a forward P/E ratio of 13.31, which may appeal to value investors [13]

Core Viewpoint - Analysts expect Gilead Sciences to report quarterly earnings of $1.73 per share, reflecting a year-over-year increase of 231.1%, with revenues projected at $6.83 billion, up 2.2% from the previous year [1]. Earnings Estimates - The consensus EPS estimate has been revised upward by 0.9% in the past 30 days, indicating a reassessment of initial estimates by covering analysts [1][2]. Revenue and Product Sales Projections - Total product sales are expected to reach $6.75 billion, indicating a year-over-year change of +1.6% [4]. - Royalty contract and other revenues are estimated at $40.04 million, reflecting a +2.7% change from the prior year [4]. - Product Sales for HIV (Genvoya) are projected at $375.96 million, showing a decline of -6.7% year over year [4]. - Product Sales for HIV (Odefsey) are expected to be $294.72 million, down -4.9% from the previous year [5]. - Oncology product sales (Tecartus) are forecasted at $56.12 million, indicating a +2% change [5]. - Liver Disease product sales (Sofosbuvir/Velpatasvir) are estimated at $238.12 million, down -4% from the year-ago quarter [6]. - Other product sales (Other) are projected at $40.07 million, reflecting a significant decline of -32.1% [6]. - Total HIV product sales in the U.S. are expected to reach $3.56 billion, indicating a +4.6% change year over year [7]. Additional Product Sales Insights - Product Sales for HIV (Genvoya) in the U.S. are projected at $299.29 million, down -9.9% from the previous year [7]. - Liver Disease product sales (Vemlidy) are expected to be $96.60 million, reflecting a +1.7% change [8]. - Other product sales (AmBisome) are projected at $11.31 million, down -19.2% from the prior year [8]. - Product Sales for Veklury are expected to be $277.30 million, indicating a -12% change year over year [8]. Stock Performance - Gilead shares have experienced a -1.3% change over the past month, compared to a -6.9% move in the Zacks S&P 500 composite [9].