Gilead Sciences, Inc. GILD reported better-than-expected fourth-quarter results and provided an upbeat guidance for 2025.
Adjusted earnings per share (EPS) of $1.90 beat the Zacks Consensus Estimate of $1.67. In the year-ago quarter, the company reported EPS of $1.72.
The year-over-year increase in EPS was driven by higher product sales and lower acquired IPR&D expenses.
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Total revenues of $7.6 billion comfortably beat the Zacks Consensus Estimate of $7.1 billion. Revenues also increased 6% year over year, primarily due to higher HIV, oncology and liver disease drug sales.
The stock was up 4% in after-market trading on Feb. 11 in response to better-than-expected quarterly results and encouraging guidance for 2025. The stock is also up in pre-market trading today.
Gilead’s shares have surged 34.8% in the past year against the industry's decline of 11.7%.
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GILD’s Q4 Highlights
Total product sales rose 7% year over year to $7.5 billion. Excluding Veklury, product sales increased 13% to $7.2 billion.
HIV product sales grew 16% year over year to $5.5 billion, primarily driven by higher demand, higher average realized price and favorable inventory dynamics. The figure beat both the Zacks Consensus Estimate and our model estimate of $5 billion.
Flagship HIV therapy Biktarvy’s sales increased 21% year over year to $3.8 billion, driven by higher demand, favorable inventory dynamics and higher average realized price. The reported number beat both the Zacks Consensus Estimate and our model estimate of $3.5 billion.
Per GILD, Biktarvy accounts for over 50% share of the treatment market in the United States.
Descovy (FTC 200 mg/TAF 25 mg) sales increased 21% year over year to $616 million, driven by higher demand and average realized price. The reported number beat the Zacks Consensus Estimate of $574 million and our model estimate of $558.5 million. Descovy maintained over 40% U.S. market share in pre-exposure prophylaxis (PrEP).
The Liver Disease portfolio sales, which include chronic HCV, chronic hepatitis B virus (HBV) and chronic hepatitis delta virus (HDV), increased 4% to $719 million. The increase was driven by higher demand for HBV and HDV drugs, along with incremental sales of Livdelzi (seladelpar) in primary biliary cholangitis (PBC).
Veklury sales plunged 53% to $337 million, primarily due to lower rates of COVID-19-related hospitalizations, particularly in the United States. Sales missed the Zacks Consensus Estimate of $338 million and our model estimate of $342 million.
Cell Therapy product (comprising Yescarta and Tecartus) sales increased 5% to $488 million. The figure beat the Zacks Consensus Estimate of $480 million and our model estimate of $482 million.
Yescarta sales increased 6% year over year to $390 million, primarily driven by higher average realized price and increased demand outside the United States, partially offset by lower demand in the country.
Tecartus (adult acute lymphoblastic leukemia) sales were flat year over year at $98 million, as increased demand outside the United States was offset by lower demand in the country.
Breast cancer drug Trodelvy’s sales increased 19% year over year to $355 million, primarily driven by higher demand in all regions. Trodelvy's sales beat the Zacks Consensus Estimate of $282 million and our model estimate of $298.6 million.
GILD’s Q4 Costs Analysis
Adjusted product gross margin increased to 86.7% from 86.1% in the year-ago quarter due to product mix.
Research and development expenses totaled $1.6 billion, up from $1.5 billion in the year-ago quarter due to incremental investments and clinical activities across its portfolio.
SG&A expenses amounted to $1.9 billion, up 16%, driven by litigation accrual and higher sales and marketing spending. This can be attributed to launch preparation activities for lenacapavir for the investigational use of HIV PrEP and Livdelzi.
GILD’s 2024 Results
Revenues in 2024 increased 6% to $28.8 billion due to higher sales in HIV, oncology and liver disease. The reported number surpassed the Zacks Consensus Estimate of $28.2 billion.
EPS of $4.62 was down 31% from $6.72 in 2023 due to higher acquired IPR&D expenses related to the CymaBay acquisition and higher income tax expenses. The reported number, however, surpassed the Zacks Consensus Estimate of $4.36.
GILD’s Upbeat 2025 Guidance
Product sales are projected to be between $28.2 billion and $28.6 billion. The Zacks Consensus Estimate for the metric is pegged at $28.3 billion. Total product sales, excluding Veklury, are expected to be between $26.8 billion and $27.2 billion.
Total Veklury sales are estimated to be $1.4 billion.
Adjusted EPS is anticipated to be in the range of $7.70-$8.10. The Zacks Consensus Estimate for the same is pegged at $7.59.
Key Pipeline Updates From GILD
The FDA granted Breakthrough Therapy Designation to Trodelvy for the treatment of adult patients with extensive-stage small cell lung cancer whose disease has progressed on or after platinum-based chemotherapy.
The European Medicines Agency’s (EMA) Committee for Medicinal Products for Human Use recommended approval of seladelpar for the treatment of PBC in combination with ursodeoxycholic acid (UDCA) in adults who have an inadequate response to UDCA alone or as monotherapy in those unable to tolerate UDCA.
Gilead submitted a new drug application to the FDA and marketing authorization application and an EU-Medicines for All application to the EMA for approval of twice-yearly lenacapavir for HIV prevention.
GILD Increases Dividend
Gilead announced that its board has declared an increase of 2.6% in its quarterly cash dividend, beginning the first quarter of 2025. The increase will result in a quarterly dividend of $0.79 per share of common stock.
Our Take on GILD’s Performance
Gilead’s fourth-quarter results were highly impressive as HIV growth driver Biktarvy maintained its dominant position across major markets. Descovy, too, put up a strong performance.
Gilead Sciences, Inc. Price, Consensus and EPS Surprise
Gilead Sciences, Inc. price-consensus-eps-surprise-chart | Gilead Sciences, Inc. Quote
Biktarvy sales increased 13% to $13.4 billion in 2024. Given the strong data from the phase III PURPOSE 1 and PURPOSE2 trials, a potential approval of lenacapavir is in the cards that should further solidify GILD’s robust HIV franchise.
Per GILD, lenacapavir, with its twice-yearly dosing, could set a new bar for HIV prevention and allow PrEP to reach a larger number of people who could benefit from a prevention regimen.
Approval of better HIV treatments should strengthen the HIV franchise in the wake of increasing competition from the likes of GSK plc GSK.
GSK posted 13% growth in HIV sales in 2024, driven by strong patient demand for long-acting injectable medicines (Cabenuva and Apretude) and Dovato.
However, total revenues in 2025 are likely to be impacted by approximately $1.1 billion as a result of the new Medicare Part D model. HIV revenues might be impacted by $900 million. Consequently, GILD expects HIV revenues to remain roughly flat in 2025.
The FDA approval of Livdelzi for PBC strengthens GILD’s liver disease portfolio. Seladelpar was added to GILD’s portfolio/pipeline through the acquisition of CymaBay Therapeutics Inc. for $4.3 billion in March 2024. A potential approval in the EU should boost sales.
GILD’s Zacks Rank & Stocks to Consider
Gilead currently carries a Zacks Rank #3 (Hold).
A couple of better-ranked stocks in the biotech sector are Immunocore Holdings plc IMCR and Alnylam Pharmaceuticals ALNY. While IMCR sports a Zacks Rank #1 (Strong Buy) at present, ALNY carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
In the past 90 days, estimates for Immunocore’s 2024 loss per share have remained unchanged at 94 cents. Loss per share estimates for 2025 have narrowed from $1.66 to $1.62 in the past seven days.
IMCR’s earnings beat estimates in two of the trailing four quarters and missed the same in the other two, the average surprise being 25.57%.
In the past 30 days, estimates for Alnylam Pharmaceuticals’ 2024 loss per share have remained constant at 39 cents. The consensus estimate for 2025 earnings per share is currently pegged at 41 cents.
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