Gilead(GILD) - 2024 Q4 - Annual Results

Sales Performance - Total product sales for full year 2024 increased 6% to $28.6 billion compared to 2023, with product sales excluding Veklury increasing 8% to$ 26.8 billion[13] - HIV product sales for full year 2024 increased 8% to $19.6 billion, driven by higher demand and increased average realized price[13] - Biktarvy sales increased 13% to$ 13.4 billion for full year 2024, primarily due to higher demand[18] - Total fourth quarter 2024 product sales increased 7% to $7.5 billion compared to the same period in 2023, with sales excluding Veklury increasing 13% to$ 7.2 billion[4] - Total revenues for Q4 2024 were $7,569 million, a 6% increase from$ 7,115 million in Q4 2023[41] - Product sales reached $7,536 million in Q4 2024, up 7% from$ 7,070 million in Q4 2023[41] - HIV product sales increased by 16% to $5,452 million in Q4 2024 compared to$ 4,693 million in Q4 2023[41] - Total product sales for the twelve months ended December 31, 2024, reached $28,610 million, compared to$ 26,934 million for the same period in 2023, a growth of 6.2%[56] Financial Performance - Diluted EPS for fourth quarter 2024 increased to $1.42 compared to$ 1.14 in the same period in 2023, driven by lower costs of goods sold and higher product sales[6] - Operating income for Q4 2024 was $2,451 million, with an operating margin of 32.4%, compared to 22.7% in Q4 2023[41] - Net income attributable to Gilead for Q4 2024 was$ 1,783 million, an increase from $1,429 million in Q4 2023[41] - Basic earnings per share attributable to Gilead were$ 1.43 for Q4 2024, up from $1.15 in Q4 2023[41] - GAAP operating income increased to$ 2,451 million in Q4 2024 from $1,612 million in Q4 2023, while non-GAAP operating income rose to$ 3,114 million from $2,739 million[45] - Non-GAAP net income attributable to Gilead for Q4 2024 was$ 2,390 million, compared to $2,161 million in Q4 2023, with GAAP net income at$ 1,783 million versus $1,429 million[45] Research and Development - R&D expenses for full year 2024 were$ 5.9 billion, reflecting incremental investments and clinical activities across the portfolio[18] - Research and development expenses for Q4 2024 were $1,641 million, representing 21.7% of total revenues, up from 19.8% in Q4 2023[41] - Presented full results from the Phase 3 PURPOSE 2 trial for investigational twice-yearly lenacapavir for HIV prevention, published in the New England Journal of Medicine[26] - Completed New Drug Application submissions to the FDA and EMA for twice-yearly lenacapavir for HIV prevention[26] - Received Breakthrough Therapy Designation from the FDA for Trodelvy in treating extensive-stage small cell lung cancer[26] - Entered into a collaboration with Tubulis to develop an antibody-drug conjugate candidate for solid tumors[26] - Announced a strategic partnership with LEO Pharma to develop a pre-clinical oral STAT6 program for inflammatory diseases[26] - Entered into a strategic research collaboration with Terray to discover novel small molecule therapies using AI[26] Cash Flow and Assets - Cash dividends declared per share increased to$ 0.77 in Q4 2024 from $0.75 in Q4 2023[41] - Net cash provided by operating activities for the twelve months ended December 31, 2024, was$ 10,828 million, up from $8,006 million in 2023[51] - Free cash flow for the twelve months ended December 31, 2024, was$ 10,305 million, compared to $7,421 million in 2023[51] - Total assets decreased from$ 62,125 million in 2023 to $58,995 million in 2024[49] - Cash and cash equivalents increased from$ 6,085 million at the end of 2023 to $9,991 million at the end of 2024[51] Future Guidance - For full-year 2025, Gilead expects product sales to be between$ 28.2 billion and $28.6 billion, with diluted EPS guidance of$ 5.95 to $6.35[20] - Projected non-GAAP product gross margin is expected to be between 85.0% and 86.0%, compared to GAAP projected gross margin of 77.0% to 78.0%[47] - GAAP projected operating income is estimated to be between$ 10,200 million and $10,700 million, while non-GAAP projected operating income is expected to be between$ 12,700 million and $13,200 million[47] - The projected effective tax rate is approximately 20% for GAAP, while the non-GAAP effective tax rate is expected to be around 19%[47] - GAAP projected diluted EPS is estimated to be between$ 5.95 and $6.35, with non-GAAP projected diluted EPS expected to be between$ 7.70 and $8.10[47] Market Performance - Total product sales for the U.S. reached$ 5,550 million in Q4 2024, an increase from $5,180 million in Q4 2023, representing a growth of 7.1%[56] - Total product sales in Europe were$ 1,160 million for Q4 2024, slightly up from $1,128 million in Q4 2023, indicating a growth of 2.8%[56] - Total product sales in the Rest of World segment increased to$ 826 million in Q4 2024 from $762 million in Q4 2023, reflecting a growth of 8.4%[56] - Total Oncology sales in the U.S. were$ 461 million for Q4 2024, down from $479 million in Q4 2023, a decline of 3.8%[56] - Total Cell Therapy sales in the U.S. decreased to$ 213 million in Q4 2024 from $253 million in Q4 2023, a decline of 15.8%[56] - Trodelvy sales in the U.S. increased to$ 247 million in Q4 2024, up from $226 million in Q4 2023, representing a growth of 9.3%[56] - Total Oncology sales in Europe increased to$ 269 million in Q4 2024 from $216 million in Q4 2023, a growth of 24.5%[56] - Total Cell Therapy sales for the twelve months ended December 31, 2024, were$ 1,973 million, up from $1,869 million in 2023, reflecting a growth of 5.6%[56] - Trodelvy sales for the twelve months ended December 31, 2024, reached$ 1,315 million, an increase from $1,063 million in 2023, representing a growth of 23.7%[56]