Gilead Sciences (GILD) investor relations material

Business performance and growth

• Base revenues grew 7% in 2023 and 5% in 2024, despite a $1.1B Medicare Part D headwind, implying 9-10% underlying growth.

• Significant R&D investment has more than doubled over the past several years, fueling portfolio expansion.

• Multiple new product launches and strong expense discipline are driving accelerating EPS growth.

• No major patent cliffs expected until 2036, supporting a long cycle of revenue growth.

Capital allocation and M&A strategy

• Annual business development spend is about $1B, focused on partnerships and small acquisitions across virology, oncology, inflammation, and cell therapy.

• Recent deals include a STAT6 degrader partnership with LEO Pharma and the acquisition of Interius, an in vivo cell therapy company.

• Preference for late-stage, de-risked assets that fit with existing commercial infrastructure, especially in virology and liver disease.

• Large-scale M&A is less likely; focus remains on disciplined, synergistic deals like CymaBay.

Global innovation and China strategy

• China has become a major source of high-quality assets, now representing over half of prioritized partnerships and acquisitions.

• Senior teams visit China multiple times a year to scout innovation, reflecting a shift from 5% to over 50% of BD priorities in five years.