Core Viewpoint - Gilead Sciences has experienced a decline in stock performance recently, and various factors, including earnings estimates and revenue growth, will influence its future stock trajectory [2][5][11]. Earnings Estimate Revisions - Gilead is projected to report earnings of $1.99 per share for the current quarter, reflecting a year-over-year decrease of 1% [5]. - The consensus earnings estimate for the current fiscal year is $7.91, indicating a significant year-over-year increase of 71.2% [5]. - For the next fiscal year, the consensus estimate is $8.39, representing a year-over-year growth of 6.1% [6]. - The Zacks Rank for Gilead is 3 (Hold), indicating a neutral outlook based on recent earnings estimate revisions [7]. Revenue Growth Forecast - The consensus sales estimate for Gilead in the current quarter is $7 billion, showing a year-over-year increase of 0.6% [11]. - Revenue estimates for the current and next fiscal years are $28.51 billion (a decrease of 0.8%) and $29.78 billion (an increase of 4.5%), respectively [11]. Last Reported Results and Surprise History - Gilead reported revenues of $6.67 billion in the last quarter, which is a year-over-year decline of 0.3% [12]. - The EPS for the last reported quarter was $1.81, compared to -$1.32 a year ago, with a revenue surprise of -2.46% and an EPS surprise of -0.55% [12]. - Over the last four quarters, Gilead has surpassed consensus EPS estimates three times and revenue estimates three times [13]. Valuation - Gilead's valuation metrics, including price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), are essential for assessing whether the stock is fairly valued [14][15]. - The Zacks Value Style Score for Gilead is graded B, indicating that the stock is trading at a discount compared to its peers [17].

Core Points - Gilead Sciences has agreed to pay $202 million to settle claims of using speaker programs to provide kickbacks to doctors for prescribing its HIV medications [1][2] - The funds were reportedly used for honoraria payments, meals, and travel expenses for doctors participating in these programs [1][3] - The U.S. Attorney's Office stated that Gilead unlawfully sought to increase sales of its HIV drugs through these kickbacks [2][3] Financial Implications - Gilead spent tens of millions of dollars on these speaker programs, including over $20 million specifically on speaking fees [3] - Additional costs included millions spent on meals, alcohol, and travel, all aimed at incentivizing doctors to prescribe Gilead's HIV drugs [3]

Investment Rating - The report does not explicitly state an investment rating for the industry, but it suggests a long-term focus on domestic innovative drugs in the oncology field and AI medical investment opportunities [3][4]. Core Insights - The pharmaceutical and biotechnology sector saw a weekly increase of 1.16%, outperforming the Wind All A index (1.15%) and the CSI 300 index (0.38%) [3][8]. - The upcoming ASCO conference is highlighted as a significant event for domestic innovative drug companies, with over 70 oral presentations and more than 10 major studies expected [3][4]. - The Ministry of Industry and Information Technology and six other departments issued a plan for the digital transformation of the pharmaceutical industry, aiming for significant advancements by 2027 and full coverage by 2030 [3][4]. Market Weekly Review - The pharmaceutical and biotechnology sector increased by 1.16% from April 21 to April 25, outperforming the Wind All A index and the CSI 300 index [3][8]. - Notable performers included medical research outsourcing (6.34%) and raw materials (4.72%), while blood products (-3.26%) and vaccines (-6.38%) continued to decline [3][9]. - Individual stock performances showed significant gains for Yong'an Pharmaceutical (31.4%), Shuyou Shen (28.4%), and Erkang Pharmaceutical (27.7%), while *ST Jiyuan (-43.2%), Nanhua Biological (-35.3%), and Shuangcheng Pharmaceutical (-27.7%) faced substantial losses [3][11]. Industry News and Key Company Announcements - On April 25, Kangfang Bio announced FDA approval for its drug Anike for the treatment of recurrent or metastatic nasopharyngeal carcinoma [12]. - The same day, Kangfang Bio also reported the approval of its PD-1/VEGF bispecific antibody for first-line treatment of specific lung cancer types [13]. - The digital transformation plan for the pharmaceutical industry aims to enhance competitiveness and quality management through AI and data integration by 2030 [3][4].

Core Insights - Gilead Sciences reported a mixed first quarter, with a revenue of $6.67 billion, remaining flat compared to the same quarter of 2024, leading to a decline in share price by over 2% [1][2][4] Revenue Performance - The revenue of $6.67 billion was attributed to declines in sales of the COVID drug Veklury and oncology products, which were offset by improvements in liver disease and HIV medications [2] - Analysts had projected revenue of $6.78 billion, indicating that Gilead's performance fell short of expectations [4] Profitability - Gilead achieved a non-GAAP net income of just under $2.3 billion, or $1.81 per share, a significant turnaround from a loss of $1.6 billion in the previous year [3] - The first quarter results were impacted by the acquisition of CymaBay Therapeutics and a $2.4 billion impairment related to a previous deal with Immunomedics [3] Guidance Adjustments - Gilead revised its full-year earnings per share guidance for 2025 to a range of $5.65 to $6.05, down from the previous forecast of $5.95 to $6.35, which disappointed some investors [5] - The adjusted profitability estimate remained unchanged at $7.70 to $8.10 per share, with revenue expectations still set at $28.2 billion to $28.6 billion [5]

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]