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Summary of IDEAYA Biosciences Conference Call Company Overview - **Company**: IDEAYA Biosciences (NasdaqGS:IDYA) - **Industry**: Clinical-stage precision medicine oncology - **Key Programs**: Nine clinical programs, with a focus on uveal melanoma and other oncology indications Key Points and Arguments Upcoming Catalysts - **Darovasertib**: Lead molecule for uveal melanoma, with an upcoming top-line data release for the combination with crizotinib in metastatic uveal melanoma expected by the end of March 2026. The company has triggered the required 130 events for analysis [2][5] - **Neoadjuvant and Adjuvant Studies**: Enrollment in a neoadjuvant study is ongoing, with plans to begin an adjuvant study in Q2 2026 [3][4] Clinical Data Expectations - **Control Arm Expectations**: The control arm is expected to show a median progression-free survival (PFS) of 2-3 months and overall survival (OS) of about 13 months based on historical data [9][10] - **Darovasertib and Crizotinib Combination**: Previous data indicated a median PFS of about 7 months and OS of 21 months, significantly better than standard therapies [10][12] - **Response Rates**: Standard therapies show a response rate of around 10%, while the combination therapy has shown a response rate exceeding 30% [10] Study Design and Patient Demographics - The study focuses on HLA-A2 negative patients with metastatic uveal melanoma, comparing the combination therapy to standard care, which varies by region [8][9] - The study design includes frequent patient scans every six weeks, which may lead to earlier detection of progression compared to traditional three-month scans [15] Regulatory and Filing Timelines - **FDA Filing**: The company anticipates a six-month timeline to file for accelerated approval post-data release, with a review period of at least six months [30] - **HLA-A2 Positive Group**: Data from HLA-A2 positive patients will be presented in two chapters, with the first chapter expected to show early efficacy data [31][32] Other Pipeline Developments - **DLL3 TOPO1 ADC**: Currently in phase I studies, with initial data expected by the end of 2026. The U.S. study has launched, and early safety data is anticipated [47][48] - **MTAP Inhibitor IDE397**: Ongoing studies in combination with Trodelvy for MTAP-deleted urothelial cancer, with promising early data [59][60] - **Combination Strategies**: The company is exploring various combination therapies, including those targeting PRMT5 and CDKN2A, to enhance treatment efficacy in MTAP-deficient tumors [66][68] Market Position and Future Outlook - IDEAYA aims to set a new standard for uveal melanoma treatment, addressing a significant unmet medical need with limited existing therapies [22][14] - The company has a strong cash position of approximately $1.05 billion, providing a runway into 2030, positioning it well for upcoming clinical milestones [5] Additional Important Information - The company emphasizes the importance of data integrity and the potential for positive outcomes based on historical performance metrics [12][26] - Discussions with the FDA regarding potential label expansions and real-world data integration are ongoing, particularly for HLA-A2 positive patients [33] This summary encapsulates the key points discussed during the conference call, highlighting IDEAYA Biosciences' strategic focus on advancing its oncology pipeline and addressing critical patient needs in uveal melanoma and other cancer indications.

Core Viewpoint - Gilead Sciences is experiencing strong financial performance and growth potential, particularly in its HIV and liver disease segments, supported by a robust pipeline of new products and an optimistic outlook from analysts [1][2][3][4][6]. Financial Performance - Gilead's Q4 2025 earnings report showed total product sales of $7.9 billion, marking a 5% increase year-over-year [2][6]. - For the full year 2025, total sales reached $28.9 billion, reflecting a 1% increase from 2024 [2][6]. - HIV sales specifically grew by 6% year-over-year, driven by the success of the drug Biktarvy and a 47% increase in the HIV prevention portfolio [2][6]. Product Developments - The new HIV prevention injectable, Yeztugo, has surpassed coverage goals and is gaining market share [3][6]. - Gilead's pipeline includes up to 10 ongoing and potential new launches through 2027, with four commercial launches planned for 2026 [3][6]. - The liver business reported a 6% growth, attributed to the adoption of Livdelzi for primary biliary cholangitis [4][6]. - Trodelvy, an oncology product, also demonstrated positive momentum with a 6% growth in 2025, supported by favorable Phase results [4][6]. Analyst Ratings - BMO Capital has maintained an "Outperform" rating for Gilead, raising the price target from $150 to $160, indicating confidence in the company's future performance [1][6].

Core Viewpoint - Gilead Sciences, Inc. reported strong fourth-quarter results for 2025, with adjusted earnings per share (EPS) of $1.86, exceeding estimates, while total revenues of $7.9 billion also surpassed expectations, driven by growth in HIV and Liver Disease drugs [1][4][6]. Financial Performance - Adjusted EPS for Q4 2025 was $1.86, beating the Zacks Consensus Estimate of $1.83, but down from $1.90 a year ago due to higher acquired IPR&D expenses [1][6]. - Total revenues reached $7.9 billion, a 5% increase year over year, surpassing the Zacks Consensus Estimate of $7.6 billion [1][4]. - Product sales increased by 5% year over year to $7.9 billion, with HIV product sales growing 6% to $5.8 billion [4][5]. Product Sales Breakdown - Biktarvy sales rose 5% year over year to $4 billion, capturing over 52% of the U.S. HIV treatment market [5][6]. - Descovy sales surged 33% year over year to $819 million, driven by increased demand for HIV prevention [6][7]. - Liver Disease portfolio sales increased 17% to $844 million, exceeding estimates, primarily due to demand for Livdelzi [8]. - Veklury sales fell 37% to $212 million, attributed to lower COVID-19 hospitalization rates [8]. Cost and Expenses - Adjusted product gross margin was 86.8%, slightly up from 86.7% year over year [11]. - Research and development expenses remained flat at $1.6 billion, while SG&A expenses decreased to $1.7 billion from $1.9 billion [11][12]. 2025 and 2026 Guidance - For 2025, revenues rose 2% year over year to $29.4 billion, exceeding estimates, with adjusted EPS increasing to $8.15 from $4.62 in 2024 [13]. - Gilead expects 2026 product sales between $29.6 billion and $30 billion, with adjusted EPS projected in the range of $8.45-$8.85 [14][15]. Pipeline and Regulatory Updates - Positive phase III results for the investigational regimen of bictegravir and lenacapavir were reported, with a potential launch targeted for the second half of the year [16][23]. - Gilead has discontinued several studies based on recommendations from independent committees, including the phase III STAR-221 study [18][19]. Market Position and Competitive Landscape - Gilead's HIV business exceeded management's growth target, driven by strong performances from Biktarvy and Descovy, despite competitive pressures [21][22]. - The company anticipates continued competitive pressures in cell therapies and expects to face headwinds from U.S. government drug pricing agreements [24][27].

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 18% in Q4 and 16% for the full year [25][5] - Return on invested capital was 15.8% and return on invested equity was 22.8% for the year, reflecting strong returns [28][5] - The company raised its guidance three times during the year, delivering results slightly above the top end of the most recent update [5][6] Business Line Data and Key Metrics Changes - The company deployed $2.6 billion in capital for the year, with 67% of investments in approved products and 33% in development stage therapies [18][31] - Synthetic royalty transactions reached a record value of $4.7 billion in 2025, exceeding traditional royalties for the first time [15][61] - Royalty receipts from key products like Voranigo, Trelstar, and Tremfya contributed significantly to growth, with minimal contribution from new acquisitions [27][25] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time, with a strong growth trajectory observed [9] - The average annual transaction value in the biopharma market nearly doubled over the past five years compared to the previous five years [9] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [5][6] - The company is excited about expanding its team and platform in China, indicating a strategic focus on international growth [36][73] - The internalization of the external manager is expected to enhance governance and reduce costs, aligning intellectual capital with the royalty portfolio [7][5] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the potential for significant value creation from the development stage pipeline [11][12] - The company anticipates continued growth driven by the increasing recognition of biopharma royalties and the demand for capital in life sciences [10][11] - Future guidance for 2026 indicates expected growth in royalty receipts of 3%-8%, despite anticipated losses from exclusivity expirations [32][35] Other Important Information - The company returned $1.7 billion to shareholders through share repurchases and dividends, with a 7% increase in dividends announced for Q1 2026 [8][31] - The company expects to maintain a high level of cash conversion and efficiency, with operating costs projected to decrease significantly in 2026 [33][25] Q&A Session Summary Question: Sustainability of dividends and buybacks - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a current bias towards royalties [40][42] Question: Involvement in private companies and capital markets - Management is open to exploring high-quality assets in private companies and remains focused on investing in high-quality pharmaceutical products [44][42] Question: Performance of Alyftrek and patient conversion - Management noted that the conversion to Alyftrek has been gradual but consistent, with expectations for continued contributions from the cystic fibrosis franchise [48][52] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in the cardiovascular space, emphasizing a diverse approach to drug delivery formats [59][54] Question: Synthetic royalties trend - Management is optimistic about the growth of synthetic royalties, noting increased awareness and demand for this funding model [61][62] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class, with no change in outlook despite trial delays, awaiting results from Novartis [63][64] Question: Underappreciated assets in the portfolio - Management highlighted significant potential in the pipeline, with several products expected to deliver substantial value [70][69] Question: China opportunity and strategic focus - Management is excited about the growing opportunity in China, with plans to expand the team and platform in the region [73][72]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 16% for the year and royalty receipts growing 13% [5][24] - The company maintained a return on invested capital of 15.8% and a return on invested equity of 22.8% for the year [5][27] - The company returned $1.7 billion to shareholders, including $1.2 billion in share repurchases and over $500 million in dividends, with a 7% increase in dividends announced for the first quarter of 2026 [7][29] Business Line Data and Key Metrics Changes - The company reported strong performance from key products such as Voranigo, Trelstar, TREMFYA, and the cystic fibrosis franchise, contributing to the growth in royalty receipts [26] - In 2025, synthetic royalty transactions reached a record value of $4.7 billion, significantly higher than previous years, indicating a growing trend in this funding modality [14][15] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time in 2025, with a strong growth trajectory observed over the past five years [8] - The company noted that the demand for capital in life sciences is increasing, driven by the recognition of the benefits of biopharma royalties [9] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [5][10] - The company plans to continue expanding its capital deployment strategy, with a focus on high-quality assets and innovative therapies [12][16] - The internalization of the external manager is expected to enhance governance and reduce costs, further supporting the company's strategic goals [6][10] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's resilience and ability to deliver consistent returns, even in uncertain market conditions [10][11] - The guidance for 2026 indicates expected growth in royalty receipts of 3%-8%, reflecting the strength of the existing portfolio [30][33] - Management highlighted the potential for significant value creation from the development stage pipeline, with multiple pivotal readouts expected in the near term [20][22] Other Important Information - The company achieved its five-year capital deployment target of $10 billion-$12 billion one year ahead of schedule [10][17] - The company has a robust pipeline of 20 development-stage therapies, with estimated combined peak sales of over $43 billion, translating to over $2.1 billion in peak annual royalties [22] Q&A Session Summary Question: Sustainability of dividends and buybacks in 2026 - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a focus on returning capital to shareholders while prioritizing royalty investments [38][40] Question: Involvement in private companies and capital markets - Management stated that they are open to investing in high-quality assets within private companies and are excited about the growth of opportunities in the sector [42] Question: Performance of ALYFTREK and patient conversion - Management noted that the conversion to ALYFTREK has been gradual but consistent, with expectations for continued contributions from the cystic fibrosis franchise [45][50] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in the cardiovascular and cardiometabolic markets, emphasizing a diversified approach to drug delivery formats [51][52] Question: Future of synthetic royalties - Management is optimistic about the continued growth of synthetic royalties, highlighting their advantages over traditional financing methods [56][59] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class and is awaiting results from ongoing trials, with no change in their positive outlook [60][61] Question: Underappreciated assets in the portfolio - Management highlighted the significant potential for value creation in the pipeline, with several products expected to deliver strong returns [66][68] Question: China opportunity and strategic focus - Management is excited about the growing opportunity in China and is looking to expand their team and platform in the region [69][71] Question: Teva's IL-15 asset and mid-stage investments - Management explained that the investment in Teva's asset was driven by the unmet need in the vitiligo market and emphasized their flexible investment structure [76][78] Question: Growth potential of VORANIGO - Management expressed strong confidence in the growth trajectory of VORANIGO, anticipating it to become a blockbuster product [79][80]

Financial Data and Key Metrics Changes - Royalty Pharma achieved strong double-digit growth in both portfolio receipts and royalty receipts, with portfolio receipts growing 16% for the year and royalty receipts growing 13% [4][23] - The company maintained a return on invested capital of 15.8% and a return on invested equity of 22.8% for the year [4][26] - The company returned $1.7 billion to shareholders, including $1.2 billion in share repurchases and over $500 million in dividends, with a 7% increase in dividends announced for Q1 2026 [6][28] Business Line Data and Key Metrics Changes - The cystic fibrosis franchise, along with products like Voranigo, Trelstar, and Tremfya, were key drivers of growth, contributing significantly to the overall increase in royalty receipts [25] - The company executed eight transactions for nine therapies in 2025, with an announced value of $4.7 billion, reflecting a disciplined approach to capital allocation [12][17] Market Data and Key Metrics Changes - The biopharma market reached $10 billion in announced transaction value for the first time, with a strong growth trajectory observed over the past five years [8] - Synthetic royalty transactions set a new record in 2025, with a market value increase of about 50% compared to the previous year, totaling $4.7 billion [14][15] Company Strategy and Development Direction - Royalty Pharma aims to be the premier capital allocator in life sciences, focusing on consistent compounding growth and shareholder value creation [4][5] - The company is excited about expanding its team and platform in China, indicating a strategic focus on international growth opportunities [34][70] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of the business, highlighting the potential for significant value creation from the development stage pipeline [10][22] - The company anticipates a growth rate of 3%-8% in royalty receipts for 2026, reflecting strong underlying momentum despite expected challenges from loss of exclusivity for certain products [29][33] Other Important Information - The internalization of the external manager in 2025 is expected to yield cost savings and improved governance [5][6] - The company achieved its five-year capital deployment target of $10 billion-$12 billion one year ahead of schedule [10][17] Q&A Session Summary Question: Sustainability of dividends and buybacks in 2026 - Management indicated that capital allocation will be based on the relative attractiveness of royalty opportunities versus stock price value, with a current bias towards royalties [39][41] Question: Involvement in private companies and capital markets - Management is open to exploring high-quality pharmaceutical products within private companies and sees growth opportunities regardless of market conditions [43][44] Question: Performance of Alyftrek and patient conversion - Management noted that the conversion to Alyftrek has been gradual but steady, with expectations for continued contributions from the cystic fibrosis franchise [47][51] Question: General medicine and cardiometabolic disease categories - Management expressed excitement about opportunities in general medicine and indicated a flexible approach to drug delivery formats based on patient needs [53][54] Question: Future of synthetic royalties - Management is optimistic about the growth of synthetic royalties, noting increased awareness and demand for this funding model [57][60] Question: Lp(a) class of drugs and trial outcomes - Management remains enthusiastic about the Lp(a) class and is awaiting results from ongoing trials, emphasizing the potential for significant royalties [61][62] Question: Underappreciated assets in the portfolio - Management highlighted the significant potential for value creation in the pipeline, particularly in products like solanezumab and frexalimab [68][69] Question: China opportunity and transaction pipeline - Management is excited about the growing opportunity set in China and is actively pursuing expansion in that market [70][72]

Full Year and Q4 2025 Financial Results February 11, 2026 Forward Looking Statements This presentation has been prepared by Royalty Pharma plc (the "Company"), is made for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy securities. The information set forth herein does not purport to be complete or to contain all of the information you may desire. Statements contained herein are made as of the date of this presentation unless stated otherwise, and ne ...

Core Insights - Gilead Sciences reported a strong performance in its HIV segment, with full-year sales reaching $20.8 billion, a 6% increase year-over-year, and fourth-quarter sales hitting a record $5.8 billion, also up 6% [1][6]. Financial Performance - Total product sales for the fourth quarter were $7.9 billion, a 5% increase year-over-year, while excluding Veklury, sales were $7.7 billion, up 7% [2]. - For the full year 2025, Gilead's total product sales were $28.9 billion, up 1% from 2024, exceeding guidance [3]. - The base business sales, excluding Veklury, were $28.0 billion, up 4% year-over-year, and would have been 8% without the impact of the Medicare Part D redesign [2][6]. HIV Business Highlights - The HIV business faced a $900 million headwind from the Part D redesign in 2025, but management indicated that excluding this impact, HIV sales grew by 10% [1]. - Biktarvy, a key treatment, generated fourth-quarter sales of $4.0 billion, up 5% year-over-year, and full-year sales of $14.3 billion, up 7% [7]. - The injectable HIV prevention product Sunlenca generated $150 million in 2025, with management forecasting about $800 million in revenue for 2026 [8][9]. Liver and Oncology Performance - Gilead's liver disease business grew 6% in 2025 to $3.2 billion, with fourth-quarter sales of $844 million, up 17% year-over-year, driven by the adoption of Livdelzi [12]. - In oncology, Trodelvy sales rose 6% in 2025 to $1.4 billion, with fourth-quarter sales of $384 million, up 8% year-over-year [13]. Future Guidance and Pipeline - For 2026, Gilead expects total product sales of $29.6 billion to $30.0 billion, with base business sales projected to grow 4% to 5% [21]. - The company plans multiple potential launches in 2026, including Trodelvy for first-line TNBC and a combination therapy for HIV [5][18]. - Management anticipates a product gross margin of about 87% and non-GAAP diluted EPS of $8.45 to $8.85 for 2026 [22]. Capital Return Strategy - Gilead returned $5.9 billion to shareholders in 2025, including $1.9 billion in share repurchases, and aims to return at least 50% of free cash flow to shareholders [24].

Financial Data and Key Metrics Changes - Full-year 2025 total product sales were $28.9 billion, up 1% from 2024, exceeding guidance due to strong demand-led HIV sales growth [34][40] - Base business revenue, excluding Veklury, was $28 billion, up nearly 4% from 2024, also exceeding guidance [34][36] - Non-GAAP diluted EPS for 2025 was $8.15, in line with guidance, reflecting lower acquired IP R&D expenses and higher revenues [38][40] Business Line Data and Key Metrics Changes - HIV business grew 6% year-over-year to $20.8 billion, driven by strong growth in Biktarvy and Descovy [35][12] - Liver business sales reached $3.2 billion, up 6% year-over-year, primarily due to Livdelzi's performance [19][36] - Oncology product Trodelvy sales increased 6% to $1.4 billion, driven by demand in metastatic breast cancer treatment [20][21] Market Data and Key Metrics Changes - HIV prevention portfolio grew 47% year-over-year, with Sunlenca achieving 90% coverage ahead of target [4][16] - Descovy sales for HIV prevention were $2.8 billion, up 31% year-over-year, reflecting increased demand [15][11] - Cell therapy sales were $1.8 billion, down 7% year-over-year, reflecting competitive pressures [22][36] Company Strategy and Development Direction - Gilead is targeting four commercial launches in 2026, including Trodelvy for first-line metastatic triple-negative breast cancer and Biclen for HIV treatment [8][24] - The company aims to maintain expense discipline while investing in new launches and M&A opportunities [9][44] - Gilead's pipeline includes up to seven potential HIV product launches through 2033, indicating a strong focus on innovation [26][27] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in entering 2026 with a strong position, citing no major product LOEs until 2036 [9][44] - The company anticipates a 2% headwind to growth in 2026 due to drug pricing agreements and changes to the Affordable Care Act [42][40] - Management expects total HIV sales to grow approximately 6% in 2026, with significant contributions from Yeztugo [17][42] Other Important Information - Gilead returned $5.9 billion to shareholders in 2025, including $1.9 billion in share repurchases [43][44] - The company is committed to investing about $1 billion annually in early-stage pipeline development [44] Q&A Session Summary Question: Can you elaborate on the assumptions driving the $800 million guidance for Yeztugo? - Management highlighted strong access and coverage, with 90% of payers covering Yeztugo, and emphasized ongoing efforts to ensure patient awareness and access [46][48] Question: What type of share gains do you expect for anito-cel in the fourth-line setting? - Management expects modest contributions in 2026 post-approval, with a goal to become the market leader over time due to efficacy and safety profile [54][56] Question: Are you expecting cannibalization of Descovy PrEP sales by Yeztugo? - Management believes Descovy will continue to grow in 2026, but anticipates Yeztugo will eventually take the lead in HIV prevention [59][62]