Gilead(US:GILD)2024-11-06 21:09Revenue Growth and Product Sales - Total third quarter 2024 revenue increased 7% to $7.5 billion compared to the same period in 2023, primarily driven by higher sales in HIV, Veklury, Oncology, and Liver Disease[3] - Biktarvy sales increased 13% year-over-year to $3.5 billion in Q3 2024, driven by higher demand and average realized price[6] - Oncology sales increased 6% year-over-year to $816 million in Q3 2024[1] - Veklury sales increased 9% year-over-year to $692 million in Q3 2024, driven by increased COVID-19 related hospitalizations[7] - Trodelvy sales increased 17% year-over-year to $332 million in Q3 2024, driven by higher demand across all regions[10] - Total revenues for Q3 2024 increased by 7% to $7.545 billion compared to $7.051 billion in Q3 2023[24] - Product sales for Q3 2024 grew by 7% to $7.515 billion, driven by a 9% increase in HIV product sales to $5.073 billion[24] - Oncology product sales increased by 6% to $816 million in Q3 2024, contributing to a 13% growth over the nine-month period[24] - Veklury sales rose by 9% to $692 million in Q3 2024, maintaining steady performance year-to-date[24] - Biktarvy U.S. sales increased to $2,826 million in Q3 2024, up 12.9% from $2,504 million in Q3 2023[31] - Total HIV product sales reached $5,073 million in Q3 2024, an 8.7% increase from $4,667 million in Q3 2023[31] - Veklury U.S. sales grew to $393 million in Q3 2024, up 52.3% from $258 million in Q3 2023[31] - Total Oncology sales for Q3 2024 were $816 million, a 6.1% increase from $769 million in Q3 2023[32] - Trodelvy global sales increased to $332 million in Q3 2024, up 17.3% from $283 million in Q3 2023[32] - Total product sales for Q3 2024 reached $7,515 million, a 7.4% increase from $6,994 million in Q3 2023[32] - Sofosbuvir/Velpatasvir global sales grew to $385 million in Q3 2024, up 2.1% from $377 million in Q3 2023[31] - Total Liver Disease sales increased to $733 million in Q3 2024, up 3.8% from $706 million in Q3 2023[31] Financial Performance and Margins - Operating income for Q3 2024 was $888 million, a significant decline from $2.623 billion in Q3 2023, reflecting higher costs and expenses[23] - Research and development expenses decreased to 18.5% of revenues in Q3 2024, down from 20.7% in Q3 2023[23] - Product gross margin improved to 79.1% in Q3 2024, up from 77.6% in the same period last year[23] - Net income attributable to Gilead for Q3 2024 was $1.253 billion, compared to $2.180 billion in Q3 2023[23] - The company reported a net loss of $1.303 billion for the nine months ended September 30, 2024, compared to a net income of $4.236 billion in the same period in 2023[23] - Gilead's effective tax rate for Q3 2024 was -31.1%, reflecting significant tax benefits compared to 6.3% in Q3 2023[23] - Non-GAAP cost of goods sold increased by 1% to $995 million in Q3 2024 compared to $985 million in Q3 2023[25] - Non-GAAP research and development expenses decreased by 5% to $1,382 million in Q3 2024 from $1,453 million in Q3 2023[25] - Non-GAAP selling, general and administrative expenses increased by 8% to $1,405 million in Q3 2024 compared to $1,298 million in Q3 2023[25] - Non-GAAP diluted earnings per share decreased by 12% to $2.02 in Q3 2024 from $2.29 in Q3 2023[25] - Non-GAAP product gross margin improved by 84 basis points to 86.8% in Q3 2024 from 85.9% in Q3 2023[25] - Non-GAAP operating margin decreased by 255 basis points to 43.2% in Q3 2024 from 45.7% in Q3 2023[25] - Non-GAAP effective tax rate increased by 1052 basis points to 17.5% in Q3 2024 from 7.0% in Q3 2023[25] - Non-GAAP operating income increased slightly to $3,258 million in Q3 2024 from $3,224 million in Q3 2023[26] - Non-GAAP other (income) expense, net decreased by 50% to $(48) million in Q3 2024 from $(96) million in Q3 2023[25] - Non-GAAP income before income taxes decreased slightly to $3,068 million in Q3 2024 from $3,088 million in Q3 2023[26] - GAAP net income attributable to Gilead for Q3 2024 was $1.253 billion, compared to $2.18 billion in Q3 2023[27] - Non-GAAP net income attributable to Gilead for Q3 2024 was $2.531 billion, compared to $2.879 billion in Q3 2023[27] - GAAP diluted earnings per share for Q3 2024 was $1.00, compared to $1.73 in Q3 2023[27] - Non-GAAP diluted earnings per share for Q3 2024 was $2.02, compared to $2.29 in Q3 2023[27] - GAAP effective tax rate for Q3 2024 was -31.1%, compared to 6.3% in Q3 2023[27] - Non-GAAP effective tax rate for Q3 2024 was 17.5%, compared to 7.0% in Q3 2023[27] - GAAP projected operating income for full-year 2024 is $1.1 billion to $1.4 billion, with non-GAAP projected operating income of $8.0 billion to $8.3 billion[28] - GAAP projected diluted EPS for full-year 2024 is $0.05 to $0.25, with non-GAAP projected diluted EPS of $4.25 to $4.45[28] Cash Flow and Financial Position - Gilead's cash, cash equivalents, and marketable debt securities decreased to $5.0 billion as of September 30, 2024, primarily due to the $3.9 billion acquisition of CymaBay Therapeutics[3] - Cash and cash equivalents decreased to $5.037 billion as of September 30, 2024, from $8.428 billion as of December 31, 2023[29] - Free cash flow for Q3 2024 was $4.169 billion, compared to $1.633 billion in Q3 2023[30] Research and Development - Lenacapavir reduced HIV infections by 96% compared to background HIV incidence in a Phase 3 study, with 99.9% of participants not acquiring HIV infection[13] - Gilead received FDA accelerated approval for Livdelzi for the treatment of primary biliary cholangitis[16] - Gilead announced a strategic collaboration with Genesis Therapeutics to develop novel small molecule therapies using Genesis' GEMS AI platform[17] Product Performance and Market Trends - Yescarta U.S. sales declined to $145 million in Q3 2024, down 26.4% from $197 million in Q3 2023[32] - Cell Therapy sales totaled $485 million in Q3 2024, slightly down from $486 million in Q3 2023[32] Future Outlook - Gilead expects full-year 2024 product sales to be between $27.8 billion and $28.1 billion, with Veklury sales expected to be $1.8 billion[12]