Gilead exceeds Covid drug sales forecasts, faces $1.75B loss on Trodelvy study failure

Gilead Sciences recently reported robust financial results driven by the significant sales of its Covid-19 antiviral drug Veklury. In the third quarter, Veklury generated $692 million, considerably surpassing the $270 million forecasted by Wall Street analysts. This unexpected surge in revenue was attributed to a rise in Covid-19 hospitalizations, particularly within the United States. Following this announcement, Gilead's shares experienced a 3% increase in after-hours trading.

In a related development, Pfizer has similarly adjusted its revenue projections for 2024 upwards, citing increased demand for its Covid-19 treatment, Paxlovid.

Turning to Gilead’s HIV treatment portfolio, the company reported impressive sales figures. Biktarvy, one of its leading HIV drugs, recorded $3.5 billion in sales during the third quarter, marking a 13% rise from the same period in the previous year. Additionally, Descovy's sales rose to $586 million, reflecting a 15% year-over-year increase. Overall, Gilead’s total revenue from its HIV drugs amounted to $5.1 billion for the quarter.

However, not all areas of Gilead’s portfolio performed as well. The company has encountered significant setbacks with its antibody-drug conjugate, Trodelvy. Gilead acquired Trodelvy through its $21 billion acquisition of Immunomedics in 2020. Recently, the company recorded a $1.75 billion impairment charge related to Trodelvy, adding to a previously reported $2.4 billion charge in April. These financial write-offs stem from the drug's failure to succeed in a pivotal study for second and later-line non-small cell lung cancer, leading Gilead to cease its development for this indication.

Moreover, in October, Gilead withdrew Trodelvy's accelerated approval for treating bladder cancer, reflecting ongoing challenges in its development pipeline. Despite these setbacks, Gilead remains committed to advancing Trodelvy in other indications. The company is now focusing on a pivotal trial for first-line lung cancer patients, an area where it faces competition from AstraZeneca and Daiichi Sankyo, who are also developing TROP2-directed antibody-drug conjugates.

This mixed performance underscores the complexities Gilead faces as it navigates both successes and challenges in its diverse pharmaceutical portfolio. While the company celebrates the remarkable sales of its Covid-19 and HIV treatments, it must also address the hurdles in bringing new oncology therapies to market. As Gilead continues to innovate and push forward with its clinical trials, the outcomes of these efforts will be pivotal in shaping its future trajectory in the highly competitive pharmaceutical landscape.