Gilead(GILD) - 2025 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - For the full year 2025, total product sales were $28.9 billion, up 1% from 2024, exceeding guidance due to strong HIV sales growth [34][36] - 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, driven by lower R&D expenses and higher revenues [38][40] Business Line Data and Key Metrics Changes - The HIV business grew 6% year-over-year to $20.8 billion, driven by strong demand for Biktarvy and Descovy [35][12] - Liver disease sales reached $3.2 billion, up 6% year-over-year, primarily due to Livdelzi's performance [19][35] - Oncology sales from Trodelvy increased 6% to $1.4 billion, driven by demand in metastatic breast cancer treatment [20][21] Market Data and Key Metrics Changes - The HIV prevention portfolio grew 53% year-over-year, with Descovy sales up 31% and Yes2Go achieving $150 million in full-year sales [15][17] - The liver market share for Livdelzi exceeded 50% in second-line PBC, reflecting strong demand and competitive dynamics [19] - Cell therapy sales were $1.8 billion, down 7% year-over-year, impacted by competitive pressures [22][35] Company Strategy and Development Direction - The company is targeting four commercial launches in 2026, including Trodelvy for first-line metastatic triple-negative breast cancer and Biclen for HIV treatment [8][24] - Gilead aims to maintain expense discipline while investing in new product launches and M&A opportunities [9][44] - The company is well-positioned for growth with no major product losses expected until 2036, entering 2026 with a strong pipeline [9][44] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's strong performance and growth potential, highlighting a robust pipeline with up to 10 ongoing and potential new launches through 2027 [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] - Management expects total HIV sales to grow approximately 6% in 2026, with Yes2Go projected to generate $800 million in revenue [42][17] Other Important Information - The company returned $5.9 billion to shareholders in 2025, including $1.9 billion in share repurchases [43][44] - R&D expenses for 2025 were $5.7 billion, down 1% from 2024, reflecting disciplined investment in clinical programs [36][38] Q&A Session Summary Question: Can you elaborate on the assumptions driving the $800 million guidance for Yes2Go? - Management highlighted strong access with 90% payer coverage and ongoing DTC campaigns to increase awareness and drive growth [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 profiles [54][56] Question: Are you expecting cannibalization of Descovy PrEP sales as early as this year? - Management believes both Yes2Go and Descovy will grow in 2026, with Yes2Go expected to take the lead in the long term [59][62] Question: What do you need to show out of Purpose 365 to support approval for the once-yearly injectable lenacapavir? - The study aims to demonstrate target coverage and pharmacokinetics, with potential market expansion opportunities identified [71][76]