Gilead to acquire cancer therapy developer Arcellx for up to $7.8 billion | ReutersSkip to main content[Exclusive news, data and analytics for financial market professionalsLearn more aboutRefinitiv]Logos of Gilead at the company's booth at the 8th China International Import Expo (CIIE) in Shanghai, China, November 6, 2025.REUTERS/Maxim Shemetov [Purchase Licensing Rights, opens new tab]- Companies[Arcellx Inc]Follow[Gilead Sciences Inc]FollowFeb 23 (Reuters) - Gilead Sciences will pay as much as $7.8 billi ...

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].

Core Viewpoint - Gilead expects its HIV portfolio sales to grow by 6% in 2026, driven by the recently launched PrEP drug Yeztugo, despite facing some headwinds from regulatory agreements and market conditions [1][2][6] Sales Performance - Gilead's HIV drugs generated $20.8 billion in sales for the full year 2025, marking a 6% increase from 2024, primarily due to the strong performance of Biktarvy, which saw sales rise by 7% to $14.3 billion [1][4] - The company anticipates total product sales between $29.6 billion and $30 billion in 2026, factoring in a decline in demand for Veklury, a Covid-19 antiviral [5] Yeztugo's Impact - Yeztugo, a biannual PrEP option, achieved $150 million in sales in 2025 after its FDA approval in June, with expectations to reach $800 million in 2026, representing a 433% year-over-year growth [3][6] - Analysts from Citi believe that the sales target for Yeztugo is achievable, indicating strong market potential [3] Future Projections - GlobalData forecasts that Yeztugo will continue to grow, potentially reaching $5.34 billion in annual sales by 2031, supported by ongoing demand for HIV prevention [4] - Gilead's CEO emphasized the company's secure business outlook, with no major loss of exclusivities until 2036, suggesting a stable growth trajectory [6]

Core Insights - Gilead Sciences reported $7.93 billion in revenue for Q4 2025, a year-over-year increase of 4.7% and a surprise of +4.63% over the Zacks Consensus Estimate of $7.57 billion [1] - The EPS for the same period was $1.86, slightly down from $1.90 a year ago, with an EPS surprise of +1.91% compared to the consensus estimate of $1.83 [1] Financial Performance - Total product sales in the U.S. reached $5.87 billion, exceeding the average estimate of $5.59 billion, representing a year-over-year change of +5.8% [4] - Total product sales globally were reported at $7.9 billion, surpassing the six-analyst average estimate of $7.53 billion, with a year-over-year change of +4.9% [4] - Royalty contract and other revenues were $22 million, below the average estimate of $38.66 million, reflecting a year-over-year decline of -33.3% [4] Product Sales Breakdown - Product sales for Liver Disease (Other) in the U.S. were $168 million, significantly above the average estimate of $141.36 million, marking a year-over-year increase of +189.7% [4] - Sales for HIV product Biktarvy totaled $3.97 billion, exceeding the average estimate of $3.79 billion, with a year-over-year change of +5.1% [4] - Sales for Veklury were $212 million, below the average estimate of $266.85 million, indicating a year-over-year decline of -37.1% [4] Stock Performance - Gilead's shares have returned +23.7% over the past month, while the Zacks S&P 500 composite showed no change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

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].

Q425 & FY25 Financial Results 1 0 D e c e m b e r 2 0 2 4 F e b r u a r y 1 0 , 2 0 2 6 Forward-Looking Statements Statements included in this document that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gilea ...

Core Viewpoint - Gilead Sciences has shown strong performance, with a 52% increase in stock price over the past year, and is set to report fourth-quarter earnings on February 10, which could influence investor decisions [1] Group 1: Financial Performance - Gilead's total revenue for the third quarter increased by 3% year over year to $7.8 billion, with a 4% increase excluding its coronavirus therapy Veklury [1] - Biktarvy, a key HIV drug, saw a revenue increase of 6% year over year [1] - For fiscal year 2025, Gilead expects product sales to be $28.6 billion at the midpoint, remaining flat compared to 2024 [2] Group 2: Growth Drivers - Yeztugo, a newly approved HIV medicine, could significantly contribute to Gilead's financial results if uptake exceeds expectations, with analysts predicting peak sales of $4.5 billion for the drug [3][4] - Gilead has a vast pipeline with many cancer programs and other HIV candidates, which could lead to improved sales growth in the coming years as the impact of Veklury diminishes [5] Group 3: Market Position and Valuation - Gilead has faced challenges in diversifying beyond its core therapeutic area, particularly in oncology, where sales have been declining [4] - The company's shares are currently trading at 16.6 times forward earnings, which is lower than the healthcare sector average of 18.7 [5]

Core Insights - Gilead Sciences (GILD) has seen a stock surge of 22% year-to-date, outperforming the broader market [1] - The company is preparing to report its fourth-quarter earnings on February 10, with growing momentum anticipated [2] Company Overview - Gilead Sciences is valued at $181.4 billion and focuses on developing medicines for serious diseases, particularly in HIV treatment and prevention [5] - The company also has significant growth potential in oncology, antiviral medicines, and next-generation cell therapy [5] Financial Performance - In Q3, Gilead's total revenue increased by 3% year-over-year (YOY) to $7.8 billion, despite a 2% decline in product sales to $7.3 billion due to reduced Covid-19-related demand for Veklury [6] - Excluding Veklury, product sales rose by 4% to $7.1 billion, indicating resilience in the core business [6] - HIV product sales increased by 4% YOY to $5.3 billion, driven by strong demand, with Biktarvy sales climbing 6% to $3.7 billion and Descovy sales surging 20% to $701 million [6] Growth Projections - Management expects the HIV franchise to grow approximately 5% YOY, an increase from prior guidance of 3%, despite challenges from U.S. Part D redesign changes [7] - The PrEP market is expanding at a rate of 14% to 15% per year, which is expected to be sustainable through 2026 [7] - Gilead's liver disease portfolio also performed well, with sales up 12% YOY to $819 million, primarily due to increased demand for Livdelzi [7]

Core Insights - Gilead Sciences, Inc. is a leading biopharmaceutical company known for its innovations in treating complex diseases, particularly in HIV/AIDS, hepatitis B and C, and COVID-19, with a focus on oncology and inflammatory diseases as future growth areas [1][2] Financial Performance - Gilead has a market capitalization of $155.4 billion, placing it in the large-cap category, with a strong product portfolio and revenue consistency justifying its valuation [2] - GILD stock has shown impressive performance, with a year-to-date increase of 35.6% and a 52-week surge of 38.9%, significantly outperforming the Dow Jones Industrial Average [4] - The stock price reached a high of $128.70 on November 11, and has increased by 9.2% over the past three months, indicating strong investor interest [3][4] Earnings Report - In Q3 2025, Gilead reported a revenue increase of 3% year-over-year, totaling $7.8 billion, driven primarily by its HIV franchise and liver disease therapies [5]

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]