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Gilead(GILD) - 2024 Q3 - Quarterly Results
GILDGilead(GILD)2024-11-06 21:09

Revenue Growth and Product Sales - Total third quarter 2024 revenue increased 7% to 7.5billioncomparedtothesameperiodin2023,primarilydrivenbyhighersalesinHIV,Veklury,Oncology,andLiverDisease[3]−Biktarvysalesincreased137.5 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 816millioninQ32024[1]−Veklurysalesincreased9816 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 332millioninQ32024,drivenbyhigherdemandacrossallregions[10]−TotalrevenuesforQ32024increasedby7332 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 7.051billioninQ32023[24]−ProductsalesforQ32024grewby77.051 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 5.073billion[24]−Oncologyproductsalesincreasedby65.073 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 692millioninQ32024,maintainingsteadyperformanceyear−to−date[24]−BiktarvyU.S.salesincreasedto692 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 2,504millioninQ32023[31]−TotalHIVproductsalesreached2,504 million in Q3 2023[31] - Total HIV product sales reached 5,073 million in Q3 2024, an 8.7% increase from 4,667millioninQ32023[31]−VekluryU.S.salesgrewto4,667 million in Q3 2023[31] - Veklury U.S. sales grew to 393 million in Q3 2024, up 52.3% from 258millioninQ32023[31]−TotalOncologysalesforQ32024were258 million in Q3 2023[31] - Total Oncology sales for Q3 2024 were 816 million, a 6.1% increase from 769millioninQ32023[32]−Trodelvyglobalsalesincreasedto769 million in Q3 2023[32] - Trodelvy global sales increased to 332 million in Q3 2024, up 17.3% from 283millioninQ32023[32]−TotalproductsalesforQ32024reached283 million in Q3 2023[32] - Total product sales for Q3 2024 reached 7,515 million, a 7.4% increase from 6,994millioninQ32023[32]−Sofosbuvir/Velpatasvirglobalsalesgrewto6,994 million in Q3 2023[32] - Sofosbuvir/Velpatasvir global sales grew to 385 million in Q3 2024, up 2.1% from 377millioninQ32023[31]−TotalLiverDiseasesalesincreasedto377 million in Q3 2023[31] - Total Liver Disease sales increased to 733 million in Q3 2024, up 3.8% from 706millioninQ32023[31]FinancialPerformanceandMargins−OperatingincomeforQ32024was706 million in Q3 2023[31] Financial Performance and Margins - Operating income for Q3 2024 was 888 million, a significant decline from 2.623billioninQ32023,reflectinghighercostsandexpenses[23]−Researchanddevelopmentexpensesdecreasedto18.52.623 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 2.180billioninQ32023[23]−Thecompanyreportedanetlossof2.180 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 4.236billioninthesameperiodin2023[23]−Gilead′seffectivetaxrateforQ32024was−31.14.236 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 985millioninQ32023[25]−Non−GAAPresearchanddevelopmentexpensesdecreasedby5985 million in Q3 2023[25] - Non-GAAP research and development expenses decreased by 5% to 1,382 million in Q3 2024 from 1,453millioninQ32023[25]−Non−GAAPselling,generalandadministrativeexpensesincreasedby81,453 million in Q3 2023[25] - Non-GAAP selling, general and administrative expenses increased by 8% to 1,405 million in Q3 2024 compared to 1,298millioninQ32023[25]−Non−GAAPdilutedearningspersharedecreasedby121,298 million in Q3 2023[25] - Non-GAAP diluted earnings per share decreased by 12% to 2.02 in Q3 2024 from 2.29inQ32023[25]−Non−GAAPproductgrossmarginimprovedby84basispointsto86.82.29 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 3,224millioninQ32023[26]−Non−GAAPother(income)expense,netdecreasedby503,224 million in Q3 2023[26] - Non-GAAP other (income) expense, net decreased by 50% to (48) million in Q3 2024 from (96)millioninQ32023[25]−Non−GAAPincomebeforeincometaxesdecreasedslightlyto(96) million in Q3 2023[25] - Non-GAAP income before income taxes decreased slightly to 3,068 million in Q3 2024 from 3,088millioninQ32023[26]−GAAPnetincomeattributabletoGileadforQ32024was3,088 million in Q3 2023[26] - GAAP net income attributable to Gilead for Q3 2024 was 1.253 billion, compared to 2.18billioninQ32023[27]−Non−GAAPnetincomeattributabletoGileadforQ32024was2.18 billion in Q3 2023[27] - Non-GAAP net income attributable to Gilead for Q3 2024 was 2.531 billion, compared to 2.879billioninQ32023[27]−GAAPdilutedearningspershareforQ32024was2.879 billion in Q3 2023[27] - GAAP diluted earnings per share for Q3 2024 was 1.00, compared to 1.73inQ32023[27]−Non−GAAPdilutedearningspershareforQ32024was1.73 in Q3 2023[27] - Non-GAAP diluted earnings per share for Q3 2024 was 2.02, compared to 2.29inQ32023[27]−GAAPeffectivetaxrateforQ32024was−31.12.29 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 1.4billion,withnon−GAAPprojectedoperatingincomeof1.4 billion, with non-GAAP projected operating income of 8.0 billion to 8.3billion[28]−GAAPprojecteddilutedEPSforfull−year2024is8.3 billion[28] - GAAP projected diluted EPS for full-year 2024 is 0.05 to 0.25,withnon−GAAPprojecteddilutedEPSof0.25, with non-GAAP projected diluted EPS of 4.25 to 4.45[28]CashFlowandFinancialPosition−Gilead′scash,cashequivalents,andmarketabledebtsecuritiesdecreasedto4.45[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 3.9billionacquisitionofCymaBayTherapeutics[3]−Cashandcashequivalentsdecreasedto3.9 billion acquisition of CymaBay Therapeutics[3] - Cash and cash equivalents decreased to 5.037 billion as of September 30, 2024, from 8.428billionasofDecember31,2023[29]−FreecashflowforQ32024was8.428 billion as of December 31, 2023[29] - Free cash flow for Q3 2024 was 4.169 billion, compared to 1.633billioninQ32023[30]ResearchandDevelopment−LenacapavirreducedHIVinfectionsby961.633 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 197millioninQ32023[32]−CellTherapysalestotaled197 million in Q3 2023[32] - Cell Therapy sales totaled 485 million in Q3 2024, slightly down from 486millioninQ32023[32]FutureOutlook−Gileadexpectsfull−year2024productsalestobebetween486 million in Q3 2023[32] Future Outlook - Gilead expects full-year 2024 product sales to be between 27.8 billion and 28.1billion,withVeklurysalesexpectedtobe28.1 billion, with Veklury sales expected to be 1.8 billion[12]