Gilead(GILD) - 2025 Q4 - Earnings Call Transcript

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]