Gilead Sciences, Inc. (GILD) Wells Fargo 2024 Healthcare Conference (Transcript)

Financial Data and Key Metrics Changes - The company's base business grew by 8% two years ago, 7% last year, and 6% in the first half of this year, indicating consistent growth [3] - Strong financial leverage was highlighted with significant growth in EPS due to a beat on both the top line and expense management [3] Business Line Data and Key Metrics Changes - Gilead has a strong presence in three areas: virology, oncology, and inflammation/immunology, with a focus on HIV treatment and prevention, liver diseases, and oncology [2] - The HIV prevention market has seen substantial growth, with the introduction of lenacapavir expected to significantly impact market dynamics [6][9] - Seladelpar, a new treatment for primary biliary cholangitis (PBC), was recently launched and is expected to drive growth in the liver disease segment [35][39] Market Data and Key Metrics Changes - The PrEP market is estimated to be a $3 billion to $3.5 billion market today, with significant growth potential as awareness increases [16][17] - The company anticipates expanding the market for HIV prevention both in the U.S. and globally, particularly with the upcoming PURPOSE II study [8][18] Company Strategy and Development Direction - Gilead is diversifying its business and building a larger portfolio through new product launches and acquisitions, such as the acquisition of seladelpar [3][35] - The company aims to leverage its existing relationships with healthcare providers to enhance the market penetration of new treatments [36] - Gilead is focusing on internal innovation while maintaining a regular cadence of business development activities, targeting smaller acquisitions and partnerships [55][56] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the HIV business despite potential headwinds from Part D reform, which may mask growth in the short term [41][42] - The company expects to see overall growth driven by multiple business segments, including oncology and liver diseases, alongside HIV [42][43] - Management highlighted the importance of raising awareness for cell therapies to increase patient access and utilization [51] Other Important Information - The company is making progress in developing next-generation HIV treatment regimens, with several candidates in various phases of clinical development [26][29] - Gilead's cell therapy business is expected to grow significantly, with a focus on expanding access to treatments in the U.S. and internationally [50] Q&A Session Summary Question: What is the current status of the PrEP market? - Management noted that the PrEP market is still in its early stages, with significant growth potential as awareness increases and new products are introduced [16][18] Question: How does Gilead plan to compete in the cell therapy market? - Management emphasized the unique advantages of their cell therapy manufacturing capabilities and the potential for their new BCMA cell therapy to be best-in-class [46][48] Question: What are the expectations for seladelpar in the PBC market? - Management believes seladelpar represents a best-in-class treatment for PBC and sees significant growth potential in this underappreciated market [35][39] Question: How does Gilead view business development moving forward? - Management indicated a shift in focus towards smaller acquisitions and partnerships, reflecting a more mature and diversified portfolio [55][56]