#USA #Foster City #Gilead Sciences #Yeztugo #Biktarvy

Gilead Sciences Reports Impressive Q2 2025 Earnings

Gilead Sciences, headquartered in Foster City, California, has revealed its earnings results for the second quarter of 2025 on August 7. The company reported a robust performance, with product sales excluding Veklury achieving a remarkable $6.9 billion, marking a 4% increase compared to the same period last year. Notably, the HIV treatment Biktarvy contributed significantly to this growth, with sales totaling $3.5 billion, reflecting a substantial 9% year-over-year growth.

Key Highlights from Q2 2025

During a conference call, Gilead's Chairman and CEO, Daniel O’Day, expressed satisfaction with the company's progress. He highlighted the approval of Yeztugo, the world's first biannual HIV prevention option by the FDA, as a landmark achievement for the quarter. O’Day stated, “This quarter's strong growth is driven by our diverse portfolio and innovative products such as Biktarvy, Descovy, Trodelvy, and Livdelzi.”

Revenue and Earnings Growth

The total revenue for the second quarter of 2025 was reported at $7.1 billion, up 2% from $6.9 billion in Q2 2024. This increase was primarily driven by rising sales of HIV products, particularly Livdelzi and Trodelvy, despite declines in chronic Hepatitis C virus (HCV) products and Veklury sales.

• - The diluted earnings per share (EPS) rose to $1.56, up from $1.29 a year earlier. This increase was influenced by a favorable shift in securities valuations and increased product sales. However, this was partially offset by a one-time impairment of $190 million related to research and development costs associated with the MYR GmbH acquisition.
• - On a non-GAAP basis, the diluted EPS remained steady at $2.01, reflecting a balance between rising sales and increasing R&D expenses.
• - Gilead’s cash, cash equivalents, and securities totaled $7.1 billion as of June 30, down from $10 billion reported at the end of December 2024.

In terms of cash flow, the operating cash flow for the second quarter was reported at $827 million, after taking into account a $1.3 billion transition tax payment related to the 2017 Tax Cuts and Jobs Act. Gilead paid nearly $994 million in cash dividends and repurchased approximately $527 million worth of common stock during this period.

Product Sales Overview

Analyzing product sales for Q2 2025, total product sales including Veklury amounted to $7.1 billion, marking a 2% increase year-over-year. Excluding Veklury, product sales reached $6.9 billion, up 4% compared to the same period last year.

• - Sales from HIV products rose 7% year-over-year to $5.1 billion, driven by increased demand and higher average net prices.
• - Notably, sales for Biktarvy showed remarkable growth, recording $3.5 billion, a 9% increase primarily due to rising demand.
• - Descovy’s sales sky-rocketed by 35% year-over-year to $653 million, attributed to increased demand and rising average prices.

Conversely, the liver disease product sales, which declined by 4% to $795 million, were primarily impacted by reduced HCV product sales, though this was partially mitigated by increased sales of Livdelzi and other products targeting Hepatitis B virus (HBV). Veklury observed significant declines, with revenues plummeting 44% year-over-year to $121 million due to a decrease in COVID-19-related hospitalizations.

Research and Development Costs

During the second quarter, Gilead's research and development (R&D) expenses rose to $1.5 billion from $1.4 billion in Q2 2024, reflecting increased costs tied to clinical trials and research activities. The non-GAAP basis R&D spending also increased to $1.5 billion. Gilead’s board of directors approved a quarterly dividend of $0.79 per share to be paid on September 29, 2025, reflecting the company's commitment to returning value to shareholders.

Looking Ahead

Gilead has revised its full-year 2025 revenue guidance upwards, now projecting total product sales between $28.3 billion and $28.7 billion. This guidance reflects strong expectations of growth primarily driven by its innovative HIV treatments. Gilead's continuous efforts in strategic collaborations, such as with the Global Fund to Fight AIDS, Tuberculosis, and Malaria, is aimed at enhancing access to life-saving medications across lower-income regions.

The company has also been recognized by TIME Magazine as one of the 100 most influential companies in 2025, underscoring its impactful work within the healthcare landscape.

As Gilead continues to expand its product portfolio and explore new treatment avenues, stakeholders and investors remain optimistic about its growth trajectory and contributions to healthcare advancements.