Gilead Sciences (GILD) Jefferies London Healthcare Conference 2025 summary

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 capital investments have more than doubled R&D spend over the past nine years, fueling portfolio expansion.

• Diversification into virology, HIV, oncology, inflammation, and cell therapy is driving accelerating EPS growth.

• Multiple new product launches are underway, supporting top-line growth.

• Strong expense discipline has contributed to improved shareholder returns.

Capital allocation and M&A strategy

• Annual business development spend is $1B+, focused on partnerships and small acquisitions across all therapeutic areas.

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

• Strategy prioritizes late-stage, de-risked assets that synergize with existing infrastructure, especially in virology and liver disease.

• Larger M&A deals are approached with discipline; deals like CymaBay are more likely than highly competitive large transactions.

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

China as a source of innovation

• China has become a major focus for partnerships and acquisitions, now representing over half of prioritized business development opportunities.

• The quality and depth of assets in China have improved dramatically in the past five years.

• Senior teams visit China multiple times a year to identify high-quality assets.