Gilead Sciences Reports Q2 2024 Financial Results

Gilead Sciences, Inc. announced its financial results for the second quarter of 2024, showcasing a 5% revenue increase to $7.0 billion compared to the same period in 2023. This boost was primarily driven by heightened sales in HIV, Liver Disease, and Oncology therapies. Chairman and CEO Daniel O’Day highlighted 6% year-over-year growth in the company’s base business, crediting strong performances in their HIV, Oncology, and Liver Disease therapies, with an 8% increase in sales for Biktarvy, an HIV treatment.

One significant milestone was the interim data from the Phase 3 PURPOSE 1 trial, which indicated 100% efficacy for lenacapavir in HIV prevention for cisgender women. Gilead also anticipates potential U.S. market entry for seladelpar, a treatment for primary biliary cholangitis.

The second quarter of 2024 saw product sales rise by 5% to $6.9 billion, with HIV product sales increasing by 3% to $4.7 billion. Biktarvy alone saw an 8% sales increase to $3.2 billion, largely driven by higher demand. Conversely, Descovy sales dropped by 6% to $485 million due to lower average realized prices offset by increased demand. The Liver Disease portfolio experienced a 17% rise to $832 million, owing to higher demand and favorable channel mix in the U.S. for chronic hepatitis treatments. Oncology product sales also climbed 15% to $841 million.

Veklury, a COVID-19 treatment, saw its sales decline by 16% to $214 million, attributed to reduced COVID-19 hospitalizations. However, cell therapy products like Yescarta and Tecartus exhibited strong growth, with Yescarta sales increasing 9% to $414 million and Tecartus sales rising 21% to $107 million due to higher demand in specific lymphoma treatments. Moreover, sales of Trodelvy surged by 23% to $320 million, driven by heightened demand for treating metastatic breast cancers.

From a financial perspective, diluted earnings per share (EPS) for the second quarter of 2024 were $1.29, up from $0.83 in the same period of 2023. This improvement was attributed to lower operating expenses, higher revenues, and reduced income tax expenses. Non-GAAP diluted EPS also increased to $2.01 from $1.34 in the same period last year. By June 30, 2024, Gilead's cash, cash equivalents, and marketable debt securities had decreased to $2.8 billion from $8.4 billion at the end of 2023, primarily due to the acquisition of CymaBay Therapeutics and debt repayments.

During the second quarter, the company generated $1.3 billion in operating cash flow, paid $972 million in dividends, and repurchased $100 million in common stock. 

Product gross margin for the quarter was 77.7%, slightly down from 78.0% in the same period of 2023, while non-GAAP product gross margin was 86.0%. Research and development expenses remained steady at $1.4 billion, though non-GAAP R&D expenses saw a modest decrease. Selling, general, and administrative expenses fell to $1.4 billion from $1.8 billion in the previous year, mainly due to non-recurring legal settlement expenses.

Gilead’s effective tax rate for the second quarter of 2024 decreased to 21.4% from 34.6% in the same period in 2023. For the full year, Gilead maintained its guidance for product sales and non-GAAP diluted EPS, projecting product sales between $27.1 billion and $27.5 billion and non-GAAP diluted EPS between $3.60 and $3.90.

In summary, Gilead Sciences has demonstrated robust financial performance and strategic advancements in its pharmaceutical portfolio, particularly in HIV and Oncology segments, setting a positive outlook for the remainder of 2024.

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