Gilead(GILD) - 2025 FY - Earnings Call Transcript

Financial Data and Key Metrics Changes - Gilead Sciences reported strong performance in Q2 2025, leading to an increase in guidance for both top-line and bottom-line growth for the year [3] - The HIV prevention business saw a significant growth with Descovy sales up 37% quarter over quarter [6] Business Line Data and Key Metrics Changes - The launch of the new HIV prevention therapy, YES2Go, has been described as the strongest execution seen in a launch, with 73% unaided awareness and 95% aided awareness [5][6] - The HIV treatment business is growing at 3%, despite expectations of flat growth due to Part D headwinds, with demand-led growth being the primary driver [36][38] Market Data and Key Metrics Changes - The HIV prevention market is currently underpenetrated, with only 50,000 to 400,000 patients on the drug, compared to a potential 1.2 to 3 million [27][31] - The market for HIV prevention is expected to evolve significantly, with a focus on patients already on other therapies transitioning to YES2Go [29][30] Company Strategy and Development Direction - Gilead is focused on expanding its HIV prevention market, emphasizing the need for broader access and coverage for its therapies [12][16] - The company is also investing in its oncology pipeline, with multiple launches expected, including a CAR T therapy for multiple myeloma and Trodelvy for breast cancer [63][72] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth of the HIV prevention business, driven by strong clinical data and payer recognition of the need for unrestricted access [25][57] - The company is preparing for potential macro headwinds but believes its strong clinical profile will help mitigate risks [56][58] Other Important Information - The J code for YES2Go was granted earlier than expected, which is crucial for reimbursement processes [12][13] - Gilead is committed to maintaining a strong pipeline with multiple late-stage programs expected to launch before the loss of exclusivity for Biktarvy in the mid-2030s [49][50] Q&A Session Summary Question: How is the launch of YES2Go performing? - The launch has been strong, with high awareness and early wins in payer negotiations, indicating a positive trajectory for the product [5][12] Question: What are the expectations for the HIV treatment market? - Despite headwinds, the HIV treatment business is growing, primarily driven by demand, with Biktarvy continuing to gain market share [36][38] Question: How does Gilead view potential changes in payer coverage? - Management is confident in achieving broad coverage for YES2Go and believes the clinical efficacy will drive payer acceptance [16][25] Question: What is the outlook for the oncology pipeline? - Gilead sees significant opportunities in oncology, particularly with the upcoming CAR T therapy and Trodelvy, which is expected to become a standard of care in breast cancer [63][72] Question: How is Gilead preparing for macroeconomic challenges? - The company is actively engaging with policymakers and believes its strong portfolio will help navigate potential changes in drug pricing and coverage [56][58]