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Can Gilead Sciences Sustain Its Growth Momentum in 2025?
GILDGilead(GILD) ZACKS·2025-01-20 20:06

Performance Overview - Gilead Sciences Inc (GILD) shares gained 26.8% in the past six months, outperforming the industry's decline of 12.2% and the S&P 500 Index [1] - The company raised its annual guidance for sales and earnings during its third-quarter earnings release, driven by growth in Veklury (COVID-19 treatment) sales [2] HIV Franchise - Gilead's HIV therapy, Biktarvy, holds a market share of more than 49% in the United States and has increased its HIV sales target to 5% in 2024 from the earlier estimate of 4% [5] - Pipeline candidate lenacapavir demonstrated 100% efficacy for HIV prevention in cisgender women and could be a game-changing HIV prevention option [6][7] New Drugs and Collaborations - FDA granted accelerated approval to seladelpar (brand name Livdelzi) for the treatment of primary biliary cholangitis (PBC) in August 2024 [8] - Gilead acquired CymaBay Therapeutics Inc for 4.3billion,addingseladelpartoitsportfolio[9]−ThecompanyannouncedastrategicpartnershipwithLEOPharmatostrengthenitsinflammationresearchportfolio[11]−Gileadenteredintoamulti−targetresearchcollaborationwithTerrayTherapeuticsandanexclusiveoptionandlicenseagreementwithTubulis[12]OncologyFranchise−Gilead′soncologyportfolio,includingtheCellTherapyfranchiseandbreastcancerdrugTrodelvy,faceschallengesduetocompetitiveheadwinds[13]−Trodelvy′slabelexpansioneffortssufferedsetbacksduetothefailureoflate−stagestudiesinurothelialcancerandnon−smallcelllungcancer[14]−FDAgrantedBreakthroughTherapyDesignationtoTrodelvyforthetreatmentofextensive−stagesmallcelllungcancer[15]ValuationandEstimates−GILD′ssharescurrentlytradeat12.13xforwardearnings,lowerthanthelarge−cappharmaindustry′saverageof15.29buthigherthanitsmeanof10.43[16]−TheZacksConsensusEstimatefor2024earningspershare(EPS)hasmovedup12centsto4.3 billion, adding seladelpar to its portfolio [9] - The company announced a strategic partnership with LEO Pharma to strengthen its inflammation research portfolio [11] - Gilead entered into a multi-target research collaboration with Terray Therapeutics and an exclusive option and license agreement with Tubulis [12] Oncology Franchise - Gilead's oncology portfolio, including the Cell Therapy franchise and breast cancer drug Trodelvy, faces challenges due to competitive headwinds [13] - Trodelvy's label expansion efforts suffered setbacks due to the failure of late-stage studies in urothelial cancer and non-small cell lung cancer [14] - FDA granted Breakthrough Therapy Designation to Trodelvy for the treatment of extensive-stage small cell lung cancer [15] Valuation and Estimates - GILD's shares currently trade at 12.13x forward earnings, lower than the large-cap pharma industry's average of 15.29 but higher than its mean of 10.43 [16] - The Zacks Consensus Estimate for 2024 earnings per share (EPS) has moved up 12 cents to 4.36 over the past 60 days [17] Strategic Partnerships - Gilead collaborated with Merck to evaluate the investigational combination of islatravir and lenacapavir for HIV treatment, showing promising results in maintaining viral suppression [20]