Gilead Sciences (GILD) Morgan Stanley 24th Annual Global Healthcare Conference summary

Portfolio strength and diversification

• Robust and diversified portfolio with no major patent expiries until 2036 and a clear plan for future patent management.

• HIV franchise is transitioning with new launches in both treatment and prevention, including Bixlenvo and upcoming weekly and monthly orals, plus a six-month injectable.

• Oncology pipeline features imminent launch of anito-cel for multiple myeloma and expansion into cell therapy and ADCs, including the Tubulis acquisition.

• Immunology and inflammation (I&I) efforts focus on small molecule innovation, with phase II data for alpha-4 beta-7 and IRAK4 expected later this year.

• Operating model emphasizes top industry quartile margins, strong cash flows, and value delivery to shareholders and patients.

HIV prevention and treatment market dynamics

• Yeztugo launch is on track for $1 billion in its first full year, driven by increased awareness and a balanced mix of new and switch patients.

• PrEP market is growing at 14%-15% annually, with total prevention portfolio reaching a $4 billion annual run rate.

• Buy-and-bill uptake for Yeztugo is exceeding expectations, signaling future volume growth.

• CDC estimates 2.2 million addressable PrEP users in the U.S., with current penetration at about 25%, indicating significant growth potential.

• Upcoming launches include a weekly oral PrEP in early 2025 and a yearly injectable by 2028, expected to further expand the market.

Global and policy environment

• Ongoing engagement with policymakers to address pricing pressures and advocate for broader healthcare system reforms, including insurance and PBMs.

• Strong focus on public funding for HIV and partnerships in low- and middle-income countries, especially sub-Saharan Africa.

• Efforts underway to expand lenacapavir access globally, with particular attention to high-need regions and government partnerships.

• Market access in first-world countries depends on demonstrating value versus daily oral generics, with targeted education and HTA processes.