Gilead Reports Growth and Raises Full-Year Guidance

Gilead Sciences Inc. (NASDAQ: GILD) reported impressive financial results for the second quarter of 2024, showcasing substantial growth across its key therapeutic areas including HIV, Liver Disease, and Oncology. The company revealed a 6% increase in total product sales year-over-year, reaching $6.7 billion.

Notable developments included sales for its HIV treatment Biktarvy, which saw an 8% rise, and a remarkable 23% increase in sales for oncology drug Trodelvy. Gilead also raised its non-GAAP operating income and earnings per share (EPS) guidance for the year, indicating confidence in its ongoing growth potential.

Key Takeaways

• Gilead achieved total product sales of $6.7 billion in Q2, a 6% increase year-over-year.
• Sales of Biktarvy rose by 8%, while Trodelvy experienced a 23% increase year-over-year.
• The company raised its full-year non-GAAP operating income and EPS guidance.
• Gilead displayed 100% efficacy in a Phase 3 trial of lenacapavir for HIV prevention.
• The Liver Disease segment reported a 17% increase in sales year-over-year, bolstered by the anticipated launch of seladelpar in the U.S.
• Oncology sales grew by 15% year-over-year, with promising data for Trodelvy in lung cancer trials.
• Sales in Cell Therapy increased by 11% year-over-year, as Gilead plans to introduce two additional therapies.

Company Outlook

Gilead is gearing up for the U.S. launch of seladelpar for primary biliary cholangitis (PBC) and expects a European regulatory decision by early 2025. Additionally, the company plans to file for regulatory approval of lenacapavir for HIV prevention based on data from two trials. Gilead aims to meet critical milestones for 2024 and anticipates strong execution in the latter half of the year.

Highlights

Bearish Aspects:

• Sales of Veklury declined by 16% year-over-year and 61% sequentially.
• Descovy sales decreased by 6% year-over-year.

Bullish Aspects:

• The core business demonstrated a 6% year-over-year growth.
• Gilead reported a strong operating margin and increased non-GAAP diluted EPS guidance.
• Positive efficacy data for Yescarta and Tecartus from clinical studies, showing extended overall survival rates.

Clinical Developments

Gilead emphasized the ongoing advancements in its therapeutic areas, particularly in HIV and Oncology. The successful Phase 3 PURPOSE 1 trial of lenacapavir demonstrated significant efficacy, generating excitement for its potential market impact. Updates shared at the AIDS conferece underscored Gilead’s commitment to maintaining its leadership in the HIV treatment and prevention landscape.

In the oncology sector, Gilead is poised to manufacture anito-cel for multiple myeloma and is preparing for pivotal trials in various cancer types. Noteworthy results presented at recent conferences reinforce the value of Gilead’s oncology products, especially Trodelvy, which remains the first approved TROP2-directed antibody-drug conjugate.

Financial Performance

Gilead’s strong financial performance in Q2 2024 reflects robust product sales across multiple therapeutic areas. The company reported a total product sales increase to $6.7 billion, attributing growth to effective management of expenses and strong demand for key products.

Operational Highlights:

• Product gross margin was reported at 86%.
• R&D expenses decreased by 3% year-over-year, showcasing cost management efforts.
• Non-GAAP diluted EPS grew 50% year-over-year to $2.01 per share.

Looking ahead, Gilead projects total product sales between $27.1 billion and $27.5 billion for the year, with expectations for continued growth in its key franchises.

In summary, Gilead Sciences Inc. has positioned itself for future success through strong performance in Q2 2024, significant clinical advancements, and strategic planning for upcoming product launches, particularly in HIV prevention and treatment. The next earnings report is tentatively scheduled for November 7th.