Analyst Conference Summary

biotechnology

conference date: February 11, 2025 @ 1:30 PM Pacific Time
for quarter ending: December 31, 2024 (fourth quarter, Q4 2024)

Forward-looking statements

Overview: Excellent quarter.

Basic data (GAAP):

Revenue was $7.57 billion, up slightly sequentially from $7.55 billion and up 6% from $7.12 billion in the year-earlier quarter.

Net income was $1.78 billion, up 42% sequentially from $1.25 billion and up 24% from $1.43 billion year-earlier.

Earnings per share (EPS, diluted) were $1.42, up 42% sequentially from $1.00, and up 25% from $1.14 in the year-earlier quarter.

Guidance:

Full year 2025 product sales estimated between $28.2 and $28.6 billion. That includes Veklury sales of $1.4 billion. GAAP diluted EPS $5.95 to $6.35; non-GAAP $7.70 to $8.10. Expects HIV revenue to be roughly flat y/y, on higher volume but lower pricing, partly from IRA.

Conference Highlights:

Daniel O'Day, CEO, said "Gilead delivered another exceptionally strong full year and fourth quarter, with growth in our base business product sales of 8% for 2024 and 13% year-over-year for the fourth quarter. From this foundation of commercial strength, we are planning for the potential launch of lenacapavir for HIV PrEP in Summer 2025, with its unique opportunity to extend the reach of HIV prevention. This potential in HIV, along with our strong and diverse portfolio, and improved operational efficiencies, positions Gilead to deliver increasing patient impact and compelling shareholder returns in the years ahead." In Q4 $3.5 billion in unsecured senior notes were issued. Helped by minimal IPR&D expenses. Expects Gilead's lead in HIV to continue. Gilead has no major loss of drug exclusivity until late 2033. Gilead now has 54 clinical programs in its pipeline. Favorable inventory dynamics helped in the quarter. Gilead believes the HIV market will grow 2% to 3% annually.

The dividend of $0.79 per share, is to be paid on March 28, 2025 to shareholders of record as of March 14, 2025.

In Q4 2024 Gilead joined a research collaboration with Terray to discover new small molecule therapies using AI.

HIV therapy sales increased 16% y/y; liver therapy up 4%; cell therapy up 5%; but veklury dropped 53% on lower Covid rates.

Launch of Livdelzi (seladelpar) is going well after Q3 U.S. approval, with $30 million sales in Q4. In Q4 2024 seladelpar received a positive opinion in the EU for PBC (primary biliary cholangitis). In UK received marketing authorization for PBC including pruritus.

In Q4 2024 filed the NDA for twice-yearly lenacapavir for PrEP. In Q3 2024 Lenacapavir for HIV reported positive Phase 3 results for twice-yearly HIV prevention. For oral once-weekly dose combined with Merck's islatravir Phase 2 data also reported. Six royalty-free licensing agreements were signed with manufacturers for sale in resource-limited nations.

Anito-cel launched the Phase 3 iMMagine-3 trial in late 2024 for second to fourth line multiple myeloma patients. Partner Arcellx presented new data at ASH 2024.

Gilead now has 61 clinical stage programs. Expects cancer program to generate one-third of revenue by 2030.

Non-GAAP numbers: Net income was $2.39 billion, down 6% sequentially from $2.53 billion and up 11% from $2.16 billion year-earlier. Non-GAAP EPS was $1.90, down 6% sequentially from $2.02 and up 10% from $1.72 year-earlier.

Product sales were $7.54 billion, up slightly sequentially from $7.52 billion and up 7% from $7.07 billion in the year-earlier quarter.

Royalty, contract and other revenue was $33 million, up sequentially from $30 million, and down from $45 million year-earlier.

Cash and equivalents ended at $10.0 billion, up sequentially from $5.0 billion. $3.0 billion cash flow from operations. Capital expense $147 million. $2.83 billion free cash flow. $350 million was used to repurchase shares. $973 million paid in dividends. Issued $3.5 billion in senior unsecured notes. Long term liabilities were $27.7 billion.

Numerous other studies are underway or planned; see Gilead pipeline.

Expenses were $5.12 billion, consisting of $1.58 billion for cost of goods sold; $1.64 billion for R&D; $11 million acquired in-process R&D; $1.91 billion SG&A. Leaving income from operations of $2.45 billion. Interest expense $248 million. Other expense $35 million. Income tax expense $385 million.

Capital allocation priorities are to grow the dividend and pay down debt. No near term plans for a major acquisition.

Q&A selective summary:

HIV treatments to replace Biktarvy? Strategy is to meet patient needs, with Biktarvy as standard of care, going forward we are looking at less frequent dosing regimens, which will reduce Biktarvy sales well before its LOE.

Lenacapivir launch mid year, access will build over time. Expense control was good in 2024. We expect that again in 2025. We hope to keep expenses flat for the forseeable future, letting increase revenue drop to the bottom line.

Anito-cel data? We did not see cases of tremors.

New administration at FDA? Everything is on track for Lenacapavir for PrEP.

Later stage oncology portfolio competitiveness? Will get an answer for Trodelvy for breast cancer soon. For TIGIT, it is an interesting target, potential for differentiation. But data sets so small are small.

Inventory? In 2024 build was all in Q4, whereas in 2023 was spread over Q3 and Q4.

Livdelzi (seladelpar) ramp? We continue to see strong week over week growth in 2025. Patients are usually naive or second line.

Factors in PrEP market growth in 2024? Value and noise from new trials. Plus more focus on the prevention market.

Small cell lung cancer targets? Glad to see progress beyond chemotherapy. TROP2 has good indicators. Some other targets are competitive, hopefully will be additive to a TROP2 foundation.

OpenIcon Analyst Conference Summaries Main Page

Gilead Investor Relations page

More Gilead analyst conference summaries

Search

More Analyst Conference Pages: