Gilead Sciences ((GILD)) has held its Q1 earnings call. Read on for the main highlights of the call.
Gilead Sciences’ recent earnings call presented a balanced outlook, highlighting strong growth in certain segments while acknowledging challenges in others. The company reported robust performance in the HIV and liver disease sectors, successful clinical trials, and promising product launches. However, these positives were tempered by declines in overall product sales, particularly Veclury and oncology, due to COVID-19 dynamics and competitive pressures. Gilead’s strategic focus on expanding its pipeline and market presence is promising but not without its hurdles.
HIV Business Growth
The earnings call revealed a 6% year-over-year increase in HIV sales, driven by higher average realized prices and strong demand. Biktarvy, a key product in this segment, saw a 7% rise in sales, underscoring robust demand-led volume growth.
Livedelzi Market Entry Success
Livedelzi has made a notable impact in its market category, achieving $40 million in sales during its second full quarter. This success represents about a third of the market share, highlighting its strong launch momentum.
Trodelvy Phase III Success
The ASCENT-04 trial results were a highlight, with Trodelvy plus pembrolizumab showing a statistically significant and clinically meaningful benefit in progression-free survival for first-line PD-L1 positive metastatic triple-negative breast cancer.
Positive Operating Margins
Gilead reported strong operating margins and earnings per share, reflecting effective expense management strategies that have bolstered financial performance.
Strong Cell Therapy Outlook
Anetocel is on track for a potential 2026 launch for relapsed refractory multiple myeloma. The product’s promising clinical profiles and manufacturing capabilities suggest a positive outlook for Gilead’s cell therapy segment.
Improvements in Liver Disease Sales
Sales in the liver disease segment increased by 3% year over year, driven by demand across PBC, HBV, and HDV, despite lower average realized prices for HCV products in the US.
Total Product Sales Decline
Total product sales, including Veclury, declined by 1% year over year. This decrease was primarily due to fewer COVID-19 related hospitalizations, affecting Veclury sales.
Reduced Oncology Sales
Oncology sales faced a downturn, with Trodelvy sales decreasing by 5% year over year, attributed to inventory dynamics and lower average realized prices.
Veclury Sales Drop
Veclury sales experienced a significant 45% year-over-year decline, reflecting the reduced rates of COVID-19 related hospitalizations.
Cell Therapy Competitive Headwinds
Sales of cell therapy products declined, facing competitive pressures, particularly outside the US.
Impact of Medicare Part D Redesign
The redesign of Medicare Part D led to flat reported HIV sales for 2025, with growth expected to resume in 2026.
Forward-Looking Guidance
Gilead Sciences provided comprehensive guidance for the future, projecting total product sales between $28.2 to $28.6 billion and non-GAAP diluted EPS of $7.70 to $8.10. The company anticipates continued growth, driven by potential launches of lenacapavir for PrEP, anetocel for multiple myeloma, and Trodelvy for breast cancer. Gilead remains committed to disciplined expense management and strategic pipeline investments.
In summary, Gilead Sciences’ earnings call conveyed a balanced sentiment, with notable strengths in HIV and liver disease segments and promising clinical trials. However, the company faces challenges with declining sales in certain areas due to competitive pressures and COVID-19 dynamics. Looking ahead, Gilead’s strategic initiatives and pipeline developments offer a positive outlook, despite the hurdles it must navigate.