#USA #Foster City #Trodelvy #Gilead Sciences #Veklury

Gilead Sciences Releases Q1 2025 Earnings

On April 24, Gilead Sciences, headquartered in Foster City, California, announced its Q1 2025 financial results, demonstrating a solid start for the year. The report revealed a 4% increase in product sales, excluding Veklury, to $6.3 billion compared to the previous year. The oncology drug Trodelvy, in particular, contributed significantly to this growth, with sales rising by 7% to $3.1 billion.

Financial Highlights

Gilead Sciences reported total revenues of $6.7 billion, mirroring the revenues from the same quarter of 2024. Notably, a decline in sales from Veklury (Remdesivir) and oncology products was mitigated by increased earnings from HIV and liver disease segments.

• - Earnings Per Share (EPS): The diluted EPS increased to $1.04 from a negative $3.34 in Q1 2024, largely due to a $3.9 billion impact from in-process research and development expenses related to the acquisition of CymaBay Therapeutics and a $2.4 billion impairment charge from Immunomedics' assets. However, this was somewhat offset by higher tax expenses and losses from equity investments.
• - Non-GAAP EPS: Adjusted non-GAAP EPS showed a significant rise to $1.81, compared to a loss of $1.32 in the previous year.
• - As of March 31, 2025, Gilead’s cash and cash equivalents stood at $7.9 billion, down from $10 billion the previous December, while the operating cash flow for the quarter was $1.8 billion. Additionally, the company paid out $1 billion in dividends and repurchased $730 million in common stock during the quarter.

Product Sales Performance

The total product sales for Q1 2025 were approximately $6.6 billion, reflecting a 1% decline from the previous year. However, sales excluding Veklury showed a promising 4% increase attributable to HIV and liver disease treatments.

• - HIV Product Sales: These reached $4.6 billion, up by 6% from 2024, driven mainly by increased average prices and rising demand. The drug Biktarvy alone generated $3.1 billion, marking a 7% increase, while Descovy recorded sales growth of 38% to $586 million.
• - Liver Disease Treatments: Sales rose by 3% to $758 million, supported by increasing demand, although this was slightly offset by decreased average market prices for hepatitis C products.
• - Veklury Sales: The decline in sales of Veklury to $320 million, a decrease of 45% from the previous year, was mainly due to a drop in hospitalizations related to COVID-19.
• - Cell Therapy Products: Sales in this segment fell 3% to $464 million, with Yescarta achieving a 2% increase to $386 million, while Tecartus saw a sharp drop of 22%.
• - Trodelvy Sales: There was a decrease of 5% in Trodelvy's sales to $293 million, mainly due to inventory changes and price declines, despite some offset from increased demand.

Cost Management and Operating Expenses

Gilead managed its costs effectively, resulting in improvements in its gross profit margin. The gross margin for Q1 was 76.7%, slightly up from 76.6% a year earlier. The company reported R&D expenses of $1.4 billion, down from $1.5 billion, reflecting reduced clinical manufacturing activities. Selling, general, and administrative (SG&A) expenses also dropped to $1.3 billion, significantly reduced from $1.4 billion.

Future Guidance

Looking ahead, Gilead updated its guidance for the full year 2025, projecting total product revenues in the range of $28.2 billion to $28.6 billion, remaining consistent with previous expectations. The total sales excluding Veklury are forecasted to be between $26.8 billion and $27.2 billion, with expectations of diluted EPS ranging from $5.65 to $6.05.

• - A key focus for Gilead in the upcoming quarters will be on the approval process for lenacapavir, a groundbreaking treatment for HIV prevention scheduled for consideration by the FDA in June 2025. The company also looks forward to continued advancements across its diverse pipeline, bolstering its momentum through the year.

Conclusion

Gilead Sciences is poised for a promising year ahead, supported by strong sales performance and ongoing trials demonstrating significant results. With a disciplined spending strategy and a focus on innovation, Gilead aims to accelerate its growth trajectory and deliver impactful health solutions globally.

To discuss these results and future initiatives, Gilead will host a conference call on April 24 at 1:30 PM PT, with the details available on their investor website.