Gilead Sciences (GILD) 44th Annual J.P. Morgan Healthcare Conference summary

HIV Business Durability and Growth

• HIV revenue grew 7% through Q3, with FY25 HIV revenue projected at over $20B and a $900M Part D headwind anticipated for 2025.

• Up to seven HIV prevention and treatment launches are planned by 2033, with Biktarvy's loss of exclusivity extended to April 2036.

• Yes2Go (Yeztugo) reached $150M in FY25 revenue, with over 85% payer coverage, major payer access, and a $0 copay for 90% of covered lives, offering 6 months of continuous HIV prevention.

• Lenacapavir launched in both the US and sub-Saharan Africa within the same year, driving a broad HIV treatment pipeline with multiple launches planned from 2026 through 2033.

• PrEP brands achieved 45% market share, with U.S. adoption growing from ~300K in 2022 to over 500K, while Descovy exceeded 45% market share and Yes2Go and Descovy are expected to drive prevention market growth.

Pipeline and Launch Portfolio

• Up to 10 new medicines or indications are expected to launch by the end of 2027 across serious diseases, with the most robust clinical and launch pipeline in company history.

• Trodelvy is set for first-line triple-negative breast cancer launch, showing improved progression-free and overall survival, with launches targeted for 2024 and 2H 2026.

• Anito-cel, targeting fourth-line multiple myeloma, is filed with the FDA and expected to launch in the second half of 2024, with FDA acceptance expected Q1 2026.

• Bictegravir/lenacapavir daily oral for HIV is expected to receive FDA decision and potentially launch in the second half of 2024, with BIC/LEN regimen offering new options and potential filing in 1H 2026.

• Portfolio expanded to 52 clinical programs, a 60% increase since 2019, with multiple phase updates and regulatory decisions anticipated in 2024.

Financial Discipline and Shareholder Returns

• Operating margins have recovered to 50% and remain in the top quartile of peers, reflecting disciplined OpEx management.

• Over $22B in dividends distributed since 2020, with a 16% dividend growth and $3.16 per share paid in 2025.

• Shareholder returns have averaged 56-57% of free cash flow since 2020, totaling $30B.

• Commitment to return at least 50% of free cash flow annually to shareholders.

• Ongoing investment of ~$1B/year in early pipeline and proactive pursuit of value-creating M&A to supplement growth.