Q324 Financial Results November 6, 2024 Forward-Looking Statements Statements included in this presentation that are not historical in nature are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Gilead cautions readers that forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially. These risks and uncertainties include those relating to: Gilead's ability to achieve its anticipated full ...

Financial Data and Key Metrics Changes - Gilead reported total product sales of $7.5 billion in Q3 2024, reflecting a 7% year-over-year increase, driven by growth across HIV, Oncology, and Liver Disease [16][66] - Non-GAAP diluted EPS was $2.02, down from $2.29 in the same period last year, primarily due to higher acquired IPR&D and tax expenses [73] - The company raised its full-year guidance for total product sales to a range of $27.8 billion to $28.1 billion, an increase of $650 million at the midpoint compared to the prior range [77][81] Business Line Data and Key Metrics Changes - HIV sales reached $5.1 billion, up 9% year-over-year, driven by higher average realized prices and increased demand [16][18] - Oncology sales were $860 million, up 6% year-over-year, primarily due to Trodelvy's growth [33] - Liver Disease portfolio sales were $733 million, up 4% year-over-year, with strong demand for the viral hepatitis portfolio [26] Market Data and Key Metrics Changes - The U.S. PrEP market grew 13% year-over-year, with Descovy for PrEP capturing over 40% market share [23] - Veklury sales increased 9% year-over-year to $692 million, with year-to-date sales of $1.5 billion exceeding initial full-year guidance [31][32] - The HIV treatment market is expected to grow at an annual rate of 2% to 3% [22] Company Strategy and Development Direction - Gilead aims to deliver at least 10 transformative therapies by 2030, with six innovative therapies launched since 2019 [10] - The company is focusing on expanding its HIV treatment portfolio with four new regimens by the end of 2030 [22] - Gilead is prioritizing resources for promising programs in Oncology, including Trodelvy and Anito-Cel, while discontinuing less promising developments [12][53] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strong performance and operational execution, leading to increased guidance across multiple metrics [6][75] - The company is optimistic about the launch of Lenacapavir for PrEP, anticipating significant market expansion opportunities [24][92] - Management acknowledged competitive pressures in the cell therapy space but remains focused on expanding utilization and access [37][116] Other Important Information - The FDA granted breakthrough therapy designation to Lenacapavir for HIV prevention, with a regulatory submission planned before the end of the year [8][45] - Livdelzi was launched in the U.S. for primary biliary cholangitis, with initial demand exceeding internal expectations [9][28] - Gilead's operating margin for Q3 was 43%, with expectations for continued strong performance in the fourth quarter [71] Q&A Session Summary Question: CAR T space impacts on Yescarta - Management discussed in-class competition from new indications and increased manufacturing capacity, while out-of-class competition includes bi-specific therapies [85][86] Question: Launch dynamics for Lenacapavir for PrEP - Management highlighted the potential for rapid market adoption and plans for a seamless launch experience for providers and consumers [91][95] Question: Anito-cel and delayed neurotoxicity - Management believes the construct of Anito-cel contributes to the lack of observed delayed neurotoxicity, with confidence in its best-in-class profile [100][101] Question: Scaling Anito-cel manufacturing - Management confirmed that learnings from Yescarta and Tecartus have been applied to Anito-cel production, allowing for efficient scaling [104][105] Question: Payer coverage for Seladelpar - Management reported positive initial payer coverage dynamics for Livdelzi, with expectations for modest contributions in 2024 and more meaningful contributions in 2025 [111][112] Question: Regulatory filing for Anito-cel - Management indicated that the regulatory filing will be based on 12 months of data, with plans to address reimbursement access challenges [115][116] Question: Expectations for the HIV analyst event - Management plans to provide both qualitative and quantitative insights on the commercialization of Lenacapavir for PrEP at the upcoming event [120][122]

Gilead Sciences (GILD) reported $7.55 billion in revenue for the quarter ended September 2024, representing a year-over-year increase of 7%. EPS of $2.02 for the same period compares to $2.29 a year ago. The reported revenue compares to the Zacks Consensus Estimate of $6.99 billion, representing a surprise of +7.94%. The company delivered an EPS surprise of +27.85%, with the consensus EPS estimate being $1.58. While investors closely watch year-over-year changes in headline numbers -- revenue and earnings - ...

Gilead Sciences (GILD) came out with quarterly earnings of $2.02 per share, beating the Zacks Consensus Estimate of $1.58 per share. This compares to earnings of $2.29 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of 27.85%. A quarter ago, it was expected that this HIV and hepatitis C drugmaker would post earnings of $1.61 per share when it actually produced earnings of $2.01, delivering a surprise of 24.84%. Over the last fou ...

Revenue Growth and Product Sales - Total third quarter 2024 revenue increased 7% to $7.5 billion compared to the same period in 2023, primarily driven by higher sales in HIV, Veklury, Oncology, and Liver Disease[3] - Biktarvy sales increased 13% year-over-year to $3.5 billion in Q3 2024, driven by higher demand and average realized price[6] - Oncology sales increased 6% year-over-year to $816 million in Q3 2024[1] - Veklury sales increased 9% year-over-year to $692 million in Q3 2024, driven by increased COVID-19 related hospitalizations[7] - Trodelvy sales increased 17% year-over-year to $332 million in Q3 2024, driven by higher demand across all regions[10] - Total revenues for Q3 2024 increased by 7% to $7.545 billion compared to $7.051 billion in Q3 2023[24] - Product sales for Q3 2024 grew by 7% to $7.515 billion, driven by a 9% increase in HIV product sales to $5.073 billion[24] - Oncology product sales increased by 6% to $816 million in Q3 2024, contributing to a 13% growth over the nine-month period[24] - Veklury sales rose by 9% to $692 million in Q3 2024, maintaining steady performance year-to-date[24] - Biktarvy U.S. sales increased to $2,826 million in Q3 2024, up 12.9% from $2,504 million in Q3 2023[31] - Total HIV product sales reached $5,073 million in Q3 2024, an 8.7% increase from $4,667 million in Q3 2023[31] - Veklury U.S. sales grew to $393 million in Q3 2024, up 52.3% from $258 million in Q3 2023[31] - Total Oncology sales for Q3 2024 were $816 million, a 6.1% increase from $769 million in Q3 2023[32] - Trodelvy global sales increased to $332 million in Q3 2024, up 17.3% from $283 million in Q3 2023[32] - Total product sales for Q3 2024 reached $7,515 million, a 7.4% increase from $6,994 million in Q3 2023[32] - Sofosbuvir/Velpatasvir global sales grew to $385 million in Q3 2024, up 2.1% from $377 million in Q3 2023[31] - Total Liver Disease sales increased to $733 million in Q3 2024, up 3.8% from $706 million in Q3 2023[31] Financial Performance and Margins - Operating income for Q3 2024 was $888 million, a significant decline from $2.623 billion in Q3 2023, reflecting higher costs and expenses[23] - Research and development expenses decreased to 18.5% of revenues in Q3 2024, down from 20.7% in Q3 2023[23] - Product gross margin improved to 79.1% in Q3 2024, up from 77.6% in the same period last year[23] - Net income attributable to Gilead for Q3 2024 was $1.253 billion, compared to $2.180 billion in Q3 2023[23] - The company reported a net loss of $1.303 billion for the nine months ended September 30, 2024, compared to a net income of $4.236 billion in the same period in 2023[23] - Gilead's effective tax rate for Q3 2024 was -31.1%, reflecting significant tax benefits compared to 6.3% in Q3 2023[23] - Non-GAAP cost of goods sold increased by 1% to $995 million in Q3 2024 compared to $985 million in Q3 2023[25] - Non-GAAP research and development expenses decreased by 5% to $1,382 million in Q3 2024 from $1,453 million in Q3 2023[25] - Non-GAAP selling, general and administrative expenses increased by 8% to $1,405 million in Q3 2024 compared to $1,298 million in Q3 2023[25] - Non-GAAP diluted earnings per share decreased by 12% to $2.02 in Q3 2024 from $2.29 in Q3 2023[25] - Non-GAAP product gross margin improved by 84 basis points to 86.8% in Q3 2024 from 85.9% in Q3 2023[25] - Non-GAAP operating margin decreased by 255 basis points to 43.2% in Q3 2024 from 45.7% in Q3 2023[25] - Non-GAAP effective tax rate increased by 1052 basis points to 17.5% in Q3 2024 from 7.0% in Q3 2023[25] - Non-GAAP operating income increased slightly to $3,258 million in Q3 2024 from $3,224 million in Q3 2023[26] - Non-GAAP other (income) expense, net decreased by 50% to $(48) million in Q3 2024 from $(96) million in Q3 2023[25] - Non-GAAP income before income taxes decreased slightly to $3,068 million in Q3 2024 from $3,088 million in Q3 2023[26] - GAAP net income attributable to Gilead for Q3 2024 was $1.253 billion, compared to $2.18 billion in Q3 2023[27] - Non-GAAP net income attributable to Gilead for Q3 2024 was $2.531 billion, compared to $2.879 billion in Q3 2023[27] - GAAP diluted earnings per share for Q3 2024 was $1.00, compared to $1.73 in Q3 2023[27] - Non-GAAP diluted earnings per share for Q3 2024 was $2.02, compared to $2.29 in Q3 2023[27] - GAAP effective tax rate for Q3 2024 was -31.1%, compared to 6.3% in Q3 2023[27] - Non-GAAP effective tax rate for Q3 2024 was 17.5%, compared to 7.0% in Q3 2023[27] - GAAP projected operating income for full-year 2024 is $1.1 billion to $1.4 billion, with non-GAAP projected operating income of $8.0 billion to $8.3 billion[28] - GAAP projected diluted EPS for full-year 2024 is $0.05 to $0.25, with non-GAAP projected diluted EPS of $4.25 to $4.45[28] Cash Flow and Financial Position - Gilead's cash, cash equivalents, and marketable debt securities decreased to $5.0 billion as of September 30, 2024, primarily due to the $3.9 billion acquisition of CymaBay Therapeutics[3] - Cash and cash equivalents decreased to $5.037 billion as of September 30, 2024, from $8.428 billion as of December 31, 2023[29] - Free cash flow for Q3 2024 was $4.169 billion, compared to $1.633 billion in Q3 2023[30] Research and Development - Lenacapavir reduced HIV infections by 96% compared to background HIV incidence in a Phase 3 study, with 99.9% of participants not acquiring HIV infection[13] - Gilead received FDA accelerated approval for Livdelzi for the treatment of primary biliary cholangitis[16] - Gilead announced a strategic collaboration with Genesis Therapeutics to develop novel small molecule therapies using Genesis' GEMS AI platform[17] Product Performance and Market Trends - Yescarta U.S. sales declined to $145 million in Q3 2024, down 26.4% from $197 million in Q3 2023[32] - Cell Therapy sales totaled $485 million in Q3 2024, slightly down from $486 million in Q3 2023[32] Future Outlook - Gilead expects full-year 2024 product sales to be between $27.8 billion and $28.1 billion, with Veklury sales expected to be $1.8 billion[12]

The earnings season for the drug/biotech sector is now in its final lap, with some large biotech and generic drug companies due to report their third-quarter 2024 results this week.The remaining large drugmakers have already reported their results. Many of these companies beat estimates for both earnings and sales. While some like Pfizer and AbbVie raised their guidance ranges, others like Eli Lilly & Merck cut their outlook.Per the Zacks classification, the pharma/biotech industry comes under the broader M ...

The upcoming report from Gilead Sciences (GILD) is expected to reveal quarterly earnings of $1.58 per share, indicating a decline of 31% compared to the year-ago period. Analysts forecast revenues of $6.99 billion, representing a decrease of 0.9% year over year. The consensus EPS estimate for the quarter has undergone a downward revision of 2.4% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this ti ...

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Gilead Sciences (GILD) closed the latest trading day at $87.23, indicating a -1.05% change from the previous session's end. This move lagged the S&P 500's daily loss of 0.92%. Meanwhile, the Dow experienced a drop of 0.96%, and the technology-dominated Nasdaq saw a decrease of 1.6%. The HIV and hepatitis C drugmaker's stock has climbed by 5.22% in the past month, exceeding the Medical sector's loss of 4.16% and the S&P 500's gain of 2.68%. Investors will be eagerly watching for the performance of Gilead Sci ...

Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades and downgrades, please see our analyst ratings page.Loop Capital analyst Anthony Chukumba initiated coverage on Grocery Outlet Holding Corp. GO with a Hold rating and announced a price target of $17. Grocery Outlet shares closed at $16.45 on Wednesday. See how other analysts view this stock.Bernstein analyst Aaron Gal initiated coverage on Gilead Sciences, Inc. GILD with a ...