Key Points
- Revenue of $7.0 billion, up 6% excluding Veklury.
- Non-GAAP diluted EPS of $2.01.
- Management maintained full-year guidance for product sales.
Gilead Sciences (GILD -0.32%), the biopharmaceutical giant known for its HIV, liver disease, and oncology treatments, announced its second quarter 2024 earnings on Aug. 8. The company reported revenue of $7.0 billion, reflecting a solid performance, particularly in its core HIV and oncology segments. The reported diluted EPS was $1.29, with non-GAAP diluted EPS at $2.01. Overall, the quarter showcased strong performance as driven by strategic product growth.
| Metric | Q2 2024 | Q2 2023 | Change |
|---|---|---|---|
| Total Revenue | $7.0 billion | $6.6 billion | 6% |
| Product Sales | $6.9 billion | $6.6 billion | 5% |
| Diluted EPS | $1.29 | $0.83 | 55.4% |
| Non-GAAP EPS | $2.01 | $1.34 | 50.0% |
| HIV Product Sales | $4.7 billion | $4.6 billion | 2.2% |
| Oncology Product Sales | $841 million | $731 million | 15.0% |
Understanding Gilead Sciences
Gilead Sciences focuses on developing and commercializing therapies for life-threatening diseases. Its primary revenue drivers are its HIV, liver disease (particularly hepatitis), and oncology product lines.
The company has maintained a strong market position in HIV treatments with key products like Biktarvy and Descovy. Although Biktarvy sales increased by 8% to $3.2 billion, Descovy saw a 6% decline to $485 million due to lower average prices. The oncology portfolio, including Trodelvy, Yescarta, and Tecartus, showed remarkable growth, reflecting increasing demand in relevant treatment areas.
Quarterly Highlights
HIV Portfolio Performance: Biktarvy continued to dominate the HIV market with an 8% sales increase to $3.2 billion, driven by higher demand.
Oncology Portfolio Impact: Oncology products delivered strong results, led by a 23% increase in Trodelvy's sales to $320 million. Yescarta sales grew by 9% to $414 million, and Tecartus sales surged 21% to $107 million.
Research and Development: Gilead reported positive interim data from its Phase 3 PURPOSE 1 trial on lenacapavir for HIV prevention, affirming 100% efficacy. Despite the setback in the TROPiCS-04 study for metastatic urothelial cancer, the oncology pipeline remains robust. Management highlighted that R&D expenses hovered around $1.4 billion, consistent with the same period last year.
Strategic Moves: The company completed a $3.9 billion acquisition of CymaBay Therapeutics expanding its liver disease portfolio.
Patent and Regulatory Actions: Gilead achieved key regulatory milestones, including the updated Biktarvy label to cover treatment for pregnant adults and resolving federal TDF litigation.
Looking Ahead
Management reaffirmed its full-year 2024 guidance, projecting product sales between $27.1 billion and $27.5 billion, excluding Veklury sales at $25.8 billion to $26.2 billion, and Veklury at $1.3 billion. However, it revised the diluted EPS expectation to $0.00 - $0.30 from the prior guidance of $0.10 - $0.50, reflecting strategic adjustments.
Investors should keep an eye on the company's progress in its HIV and oncology pipelines. Future growth could hinge on successful trial results and market expansions, particularly in its oncology segment. The integration of new acquisitions and collaborations will also be pivotal in shaping Gilead's future trajectory.
