Summary of Gilead Sciences Conference Call Company Overview - **Company**: Gilead Sciences (NasdaqGS: GILD) - **Date of Conference**: November 10, 2025 Key Industry Insights - **Policy Environment**: Ongoing discussions with the U.S. administration regarding Medicaid and pricing disparities between the U.S. and Europe, with a focus on maintaining innovation in the biotech sector [6][7][8] - **R&D Commitment**: Gilead has committed $32 billion to U.S. R&D and manufacturing investments over the next five years [8] Core Business Segments HIV Business - **Market Position**: Gilead has the largest HIV treatment and prevention business, with a projected 5% growth in 2025 despite headwinds from Medicare Part D reforms [12][23] - **Yeztugo Launch**: Yeztugo, a new long-acting HIV prevention injection, generated $39 million in sales in Q3 and is expected to reach $150 million for the year [15][17] - **Access and Adoption**: Over 75% access to covered lives in the U.S. achieved within three months of launch, with major Medicaid plans including Yeztugo on their formularies [17][22] - **Descovy Performance**: Descovy, the existing daily pill for HIV prevention, grew 32% year-over-year, contributing significantly to the overall HIV prevention business growth of 42% [14][26] Oncology and Liver Disease - **Livdelzi Performance**: Livdelzi, a drug for primary biliary cholangitis, achieved $105 million in sales with a 35% quarter-over-quarter growth, partly due to the withdrawal of a competitor's product [42][44] - **Hepcludex Update**: Hepcludex for hepatitis D is expected to be refiled in the U.S. after successful performance in Europe, representing a growth opportunity in Gilead's liver portfolio [50][52] Cell Therapy - **Anito-cel Development**: Anito-cel, a BCMA cell therapy for multiple myeloma, is expected to launch in 2026, with potential for significant market share [55][56] - **Trodelvy Growth**: Trodelvy is projected to grow significantly as it moves into first-line treatment for triple-negative breast cancer, with a current run rate of approximately $1.4 billion [58][59] Financial Performance and Guidance - **Sales Growth**: Gilead's overall business is experiencing strong growth, particularly in HIV prevention and treatment, with a robust pipeline of new products [11][12][52] - **Capital Allocation Strategy**: Gilead plans to remain active in business development but will be selective due to a strong existing portfolio and no immediate patent cliffs until 2036 [65][68] Additional Considerations - **Market Dynamics**: Gilead is observing competitive pressures in the cell therapy market but remains committed to expanding its offerings [56][57] - **Therapeutic Focus**: The company will continue to focus on virology, liver disease, inflammation, and oncology, with no immediate plans to enter new therapeutic areas [70][71] This summary encapsulates the key points discussed during the conference call, highlighting Gilead Sciences' strategic direction, market performance, and future growth opportunities.

Core Insights - Gilead Sciences, Inc. (GILD) reported a 3% year-over-year growth in total revenues for Q3 2025, driven by higher royalty, contract, and other revenues, alongside strong product sales from its HIV franchise and liver disease drug Livdelzi [1][10] Revenue Breakdown - Total revenues include product sales and royalty, contract, and other revenues [1] - Excluding Veklury, product sales increased by 4% to $7.1 billion [2] HIV Franchise Performance - Gilead's HIV franchise remains strong, with flagship therapies Biktarvy and Descovy contributing significantly to revenue growth [3] - Biktarvy sales rose 6% year-over-year to $3.7 billion, capturing over 52% of the U.S. treatment market [4] - Descovy sales increased by 20% year-over-year to $701 million, with approximately 75% of sales for HIV prevention [6] - Newly approved Yeztugo generated $39 million in sales, achieving a 75% coverage goal ahead of schedule [7] - Gilead anticipates approximately 5% HIV revenue growth in 2025, despite challenges from Medicare Part D redesign [7] Liver Disease Portfolio - Sales from the liver disease portfolio increased by 12% to $819 million, primarily due to demand for Livdelzi [9] - Livdelzi surpassed $100 million in quarterly sales for the first time and is now the first-line treatment for second-line PBC in the U.S. [10][11] Cell Therapy Franchise - Sales from the Cell Therapy franchise decreased by 11% to $432 million, missing consensus estimates [12] - Yescarta sales fell by 10% to $349 million, while Tecartus sales decreased by 15% to $83 million due to lower demand [12] Overall Performance and Market Position - Despite declines in Veklury and Cell Therapy sales, the strong performance of the HIV franchise and Livdelzi supports future growth [10][14] - Gilead's shares have surged 32.2% year-to-date, outperforming the industry growth of 12.1% [14]

Market Dynamics & Competition - Pharma companies are heavily investing in MASH (Metabolic dysfunction-associated steatohepatitis) drugs, indicating a significant market opportunity [1] - The entry of multiple companies into the MASH treatment space is expected to drive awareness, diagnosis, and treatment rates [3][6] - Magical Pharmaceuticals views the increasing competition as beneficial for market development, as the current penetration rate is only 7% of diagnosed patients [3][4] - The MASH market is projected to become a large specialty market, similar to rheumatoid arthritis and psoriasis markets, which are valued at over $20 billion [6][7] Magical Pharmaceuticals' Performance & Strategy - Magical Pharmaceuticals' drug Resifa (BGOI) was the first MASH drug approved by the FDA in March 2024 [1][2] - Magical Pharmaceuticals is currently on an $800 million run rate, indicating strong initial market traction [7] - The company believes it can effectively compete with larger pharmaceutical companies due to the specialized nature of the market and its targeted approach to specialists [9][10] - Magical Pharmaceuticals is tracking at or near the top of every metric compared to the 10 best specialty launches over the last 10 years [10] - The company aims to stay ahead of competitors by continuously adding tens of thousands of patients and iterating based on market experience [11]

Core Viewpoint - Gilead Sciences, Inc. (GILD) has demonstrated strong stock performance, gaining 27.2% over the past six months, significantly outperforming the industry and broader market indices [1][7]. Gilead's HIV Portfolio - The recent FDA approval of lenacapavir, branded as Yeztugo, introduces the first and only twice-yearly injectable option for HIV prevention in the U.S., enhancing Gilead's market-leading HIV treatment portfolio [2][4]. - Gilead's flagship drug, Biktarvy, holds over 51% market share in the U.S. treatment market, while Descovy maintains over 40% market share in the PrEP market [3][4]. - Yeztugo addresses barriers to PrEP adoption, such as adherence and healthcare access, and is expected to increase uptake among underserved populations [5][4]. Financial Performance and Growth - Gilead's stock has outperformed the industry, sector, and S&P 500 index, supported by the FDA approval of Yeztugo and rising earnings estimates [6][7]. - Earnings estimates for Gilead have increased, with the 2025 bottom-line estimate rising to $7.92 from $7.91, and the 2026 estimate improving to $8.48 from $8.39 [15]. Liver Disease Portfolio - Gilead's liver disease portfolio has been strengthened by the FDA approval of seladelpar for primary biliary cholangitis (PBC), which has shown encouraging initial uptake [9][10]. Oncology Business Challenges - Gilead's oncology portfolio faces challenges, particularly in the Cell Therapy franchise due to competitive pressures, but positive results from the ASCENT-03 study on Trodelvy may bolster future growth [11][12]. Strategic Positioning - Gilead's strategic collaborations and acquisitions, including a partnership with Merck for HIV treatment, position the company for continued growth despite competitive pressures from other firms like GSK [17][18]. - The company maintains a strong cash position of $7.9 billion, supporting its attractive dividend yield of 2.83%, which is sustainable [19].

Core Viewpoint - Gilead Sciences, Inc. has demonstrated strong performance in a volatile market, with shares up 21.1% year-to-date, significantly outperforming the industry and the S&P 500 Index, which declined by 4.7% [1][8]. Group 1: HIV Market Leadership - Gilead is a dominant player in the HIV market, with its flagship drug Biktarvy accounting for over 51% of the treatment market share in the U.S. [4] - The company’s Descovy for pre-exposure prophylaxis (PrEP) maintains over 40% market share in the U.S. [5] - The FDA has accepted new drug applications for lenacapavir for HIV prevention, with a target action date of June 19, 2025, which could enhance Gilead's HIV franchise [5][6]. Group 2: Liver Disease Portfolio - The FDA approval of seladelpar (Livdelzi) for primary biliary cholangitis (PBC) strengthens Gilead's liver disease portfolio and validates its CymaBay acquisition [7][9]. Group 3: Oncology Business Challenges - Gilead's oncology portfolio, including the Cell Therapy franchise and Trodelvy, faces competitive pressures, particularly in the U.S. and Europe, which are expected to continue into 2025 [10]. - Despite challenges, positive results from the phase III ASCENT-03 study on Trodelvy indicate potential for improvement in the oncology business [11]. Group 4: Financial Performance and Estimates - Gilead's shares trade at a price/earnings ratio of 13.70x forward earnings, lower than the large-cap pharma industry's average of 14.62x but higher than its historical mean of 10.53x [12]. - Earnings estimates for Gilead have increased, with the 2025 bottom-line estimate rising to $7.91 from $7.87, and the 2026 estimate improving to $8.39 from $8.31 [14]. Group 5: Strategic Positioning and Dividends - Gilead's strategic deals and acquisitions are aimed at diversifying its business, although Biktarvy sales may face pressure due to Medicare Part D redesign [17]. - The company has a strong cash position of $7.9 billion as of March 31, 2025, and has consistently increased dividends, declaring a quarterly dividend of $0.79 per share for Q2 2025, indicating a sustainable yield of 2.91% [18].

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]