Gilead Sciences, Inc. (GILD) BofA Securities 2024 Health Care Conference (Transcript)

Summary of Gilead Sciences, Inc. Conference Call Company Overview - Company: Gilead Sciences, Inc. (NASDAQ: GILD) - Event: BofA Securities 2024 Health Care Conference - Date: May 14, 2024 - Participants: Geoff Meacham (Bank of America Securities), Andrew Dickinson (CFO) Key Points on HIV Business - BIKTARVY Performance: - BIKTARVY has gained 3 percentage points in the overall HIV treatment market year-over-year, with sales growing 10% year-over-year [6] - It is used by 49% of HIV patients in the U.S. as their first treatment and has a long retention rate due to its effectiveness [6] - BIKTARVY is a $12 billion drug with patent protection until 2033, making it a cornerstone of Gilead's HIV portfolio [7][8] - Market Dynamics: - The overall HIV treatment market is growing at 2% to 3% year-over-year, with stable pricing [7] - Competitive dynamics exist, particularly in Europe where price sensitivity is higher [10] - Future Developments: - Gilead has nine programs in clinical development for next-generation HIV therapies, with at least four expected launches by the end of the decade [11][12] - Long-acting therapies are anticipated to capture at least half of the HIV treatment market over time [16][17] Key Points on HIV Prevention - Market Growth: - The HIV prevention market has grown significantly, with an 11% year-over-year increase in the first quarter [19] - Gilead's DESCOVY and TRUVADA are key products, with lenacapavir expected to be a viable option for prevention [18] - Lenacapavir: - Expected approval for lenacapavir as a six-month injection for prevention by 2025, which could significantly impact the HIV epidemic [20][21] Key Points on Oncology - TRODELVY Performance: - TRODELVY, an antibody-drug conjugate, is commercially successful, with $1 billion in sales and potential for growth in multiple solid tumors [26] - Upcoming Phase 3 data for TRODELVY in breast cancer and bladder cancer is anticipated [25] - Trop-2 Targeting: - Trop-2 is a promising target across various solid tumors, with ongoing studies in lung cancer and other indications [28] Key Points on Cell Therapy - Kite Acquisition: - Gilead's cell therapy business, particularly CAR T therapies, is crucial, with $2 billion in sales and significant growth potential [42] - Manufacturing capabilities are a competitive advantage, with a 14-day turnaround time for CAR T production [43] - Anito-cel Development: - Partnership with Arcellx for anito-cel, a BCMA CAR T therapy, shows promise with favorable Phase 1/2 data [45] Key Points on Liver Disease - CymaBay Acquisition: - Gilead acquired CymaBay, which has a product for Primary Biliary Cholangitis (PBC), expected to be breakeven to EPS next year and accretive in 2026 [58][59] - The drug shows significant benefits for liver injury markers and pruritus, enhancing its market potential [59] Strategic Outlook - Gilead plans to pursue similar acquisitions every two to three years, focusing on late-stage assets with significant revenue growth potential [60]