Financial Data and Key Metrics Changes - The company has increased its R&D spending to around 20% of sales, up from approximately 13-14%, indicating a significant investment in future growth [12] - The operating margins remain in the top quartile of the industry, reflecting strong financial health and operational efficiency [13] Business Line Data and Key Metrics Changes - The oncology business has reached a run rate of over $3 billion, contributing more than half of the company's quarterly growth [6] - The company is preparing for multiple upcoming launches in oncology, including Trodelvy for breast cancer, which has shown promising clinical data [10][11] Market Data and Key Metrics Changes - The company is focusing on expanding its HIV treatment options, with lenacapavir for PrEP expected to significantly increase market penetration [49][50] - The company aims to address the approximately 40% of HIV patients who are not virologically suppressed, indicating a substantial market opportunity [46] Company Strategy and Development Direction - The company is diversifying its portfolio beyond HIV, with a focus on oncology and inflammation, aiming to develop innovative treatments in these areas [52] - The strategy includes a commitment to business development and potential acquisitions, targeting mid-single digit billion dollar deals for late-stage assets [60][61] Management's Comments on Operating Environment and Future Outlook - The management acknowledges the pressures facing the biopharma sector, including tariffs and drug pricing reforms, but believes the company's strong portfolio and low patent exposure provide a competitive advantage [20][24] - The management is optimistic about the upcoming launch of lenacapavir, which is expected to change the landscape of HIV prevention [72][76] Other Important Information - The company is committed to maintaining its dividend policy and growing dividends in line with its strong financial base [13] - The management emphasizes the importance of understanding the HIV community and ensuring effective launch strategies for new products [83][84] Q&A Session Summary Question: How does Gilead rank the relative risks from tariffs and drug pricing reforms? - The management believes that the company's strong balance sheet and low patent exposure help mitigate risks associated with tariffs and drug pricing reforms [20][24] Question: What are the key factors for a successful launch of lenacapavir? - Key factors include ensuring payer coverage, provider education, and reaching new patient populations, with expectations of achieving 70-75% payer coverage within six months [84][85] Question: What is the long-term ambition for lenacapavir? - The management sees lenacapavir as a transformative product with the potential for once-a-year dosing, aiming to expand access globally through partnerships with generic manufacturers [73][76]

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]