Analyst Conference Summary

biotechnology

conference date: August 7, 2025 @ 1:30 PM Pacific Time
for quarter ending: June 30, 2025 (second quarter, Q2 2025)

Forward-looking statements

Overview: Good quarter.

Basic data (GAAP):

Revenue was $7.08 billion, up 6% sequentially from $6.67 billion and up 2% from $6.95 billion in the year-earlier quarter.

Net income was $1.96 billion, up 48% sequentially from $1.32 billion and up 22% from $1.61 billion year-earlier.

Earnings per share (EPS, diluted) were $1.56, up 47% sequentially from $1.06, and up 21% from $1.29 in the year-earlier quarter.

Guidance:

Slightly increase 2025 guidance. Product sales $28.3 to $28.7 billion. Diluted EPS $5.85 to $6.15. Diluted non-GAAP EPS $7.95 to $8.25.

Conference Highlights:

Daniel O'Day, CEO, said "This was a very successful second quarter for Gilead, including the FDA approval for Yeztugo as the world's first twice-yearly HIV prevention option. Our strong growth this quarter was driven by Biktarvy, Descovy, Trodelvy and Livdelzi, reflecting the diversity of our portfolio. As we enter the third quarter, we are increasing revenue and earnings guidance for the year." Veklury sales were off due to the decline in the Covid pandemic, but HIV therapy sales were strong.

The dividend of $0.79 per share, is to be paid on September 29, 2025 to shareholders of record as of September 15, 2025. A new $6.0 billion stock repurchase program.

In Q4 2024 had filed the NDA for twice-yearly lenacapavir, now Yeztugo, for PrEP. Approved by the FDA in June, 2025. Six royalty-free licensing agreements were signed with manufacturers for sale in resource-limited nations. Also received a postive EMA opinion. Believes Yeztugo could bend the arc of the HIV epidemic.

In Q2 2025 Trodelvy for 1L metastatic triple-negative breast cancer (mTNBC) who are not candidates for PD-1/PD-L1 checkpoint inhibitors presented positive Phase 3 data. Presented positive Phase 3 data in combo with Keytruda for first line PD-L1+ MTNBC as ASCO. Data was highly statistically and clinically meaningful. Filings planned for 2H 2025.

In Q2 2025 Gilead entered a license agreement with Kymera for oral molecular glue CDK2 degraders for oncology.

Non-GAAP numbers: Net income was $2.52 billion, up 10% sequentially from $2.29 billion and flat from $2.52 billion year-earlier. Non-GAAP EPS was $2.01, up 11% sequentially from $1.81 and flat from $2.01 year-earlier.

Product sales were $7.05 billion, up sequentially from $6.61 billion and up 2% from $6.91 billion in the year-earlier quarter.

Royalty, contract and other revenue was $27 million, down sequentially from $54 million, and down from $41 million year-earlier.

Cash and equivalents ended at $7.1 billion, down sequentially from $7.93 billion. $827 million cash flow from operations. Capital expense $107 million. $720 million free cash flow. $527 million was used to repurchase shares. $994 million paid in dividends. Long term liabilities were $25.0 billion. In Q2 2025 a final $1.3 billion transition tax payment was made for the Tax Cuts and Jobs Act of 2017.

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

Expenses were $4.61 billion, consisting of $1.50 billion for cost of goods sold; $1.49 billion for R&D; $61 million acquired in-process R&D; $190 million million in-process R&D impairments; $1.37 billion SG&A. Leaving income from operations of $2.47 billion. Interest expense $254 million. Other income $208 million. Income tax expense $468 million.

Capital allocation priorities are to grow the dividend and pay down debt.

Q&A selective summary:

Yeztugo launch? Just starting, but thrilled to see what is going on. Ready to go on first day after approval. 25,000 customer calls in field already. Awareness was very high at launch. Access for reimbursements is going way. Getting a J code quickly, set for October 1. Already have several state Medicare wins.

PreP market is growing at about 15% per year. About 500,000 active users now.

Potential Medicaid changes? We are working with the administration on the topic of MFN. There is a lot of uncertainty in the country. We have limited patent exposure to the end of 2033. We support finding ways for patients to afford their medicines. Medicaid HIV for us is mid to lower 20s, the copays are incredibly low. New rules should not impact until 2026 or 2027. HIV untreated has grave consequences, including potential local epidemics. So coverage is important.

We are confident patients will continue to have access to HIV prevention.

GS-4182/GS-1720 clinical hold? We have other molecules in those classes in our portfolio. We are examining the data to understand the problem. Could move foreward with a substitute for one of the drugs.

Yeztugo should be more obviously valuable compared to generic Truvada in ex-US markets. But the reimbursement challenge may be complex. No nation is currently meeting its 2030 target.

Questions about guidance upward based on Yeztugo? It is just very early in the launch. Access is critical. Currently we are managing reimbursements. So we want to see broader coverage.

OpenIcon Analyst Conference Summaries Main Page

Gilead Investor Relations page

More Gilead analyst conference summaries

Search

More Analyst Conference Pages: