Gilead Sciences (GILD) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 5% year-over-year to $7.0B, driven by strong HIV, Liver Disease, and Oncology product sales; Biktarvy sales rose 8% to $3.2B, and Oncology sales increased 15% to $841M.

• Non-GAAP diluted EPS increased 50% year-over-year to $2.01; GAAP diluted EPS was $1.29, up from $0.83.

• Lenacapavir's PURPOSE 1 trial achieved 100% efficacy in HIV prevention for cisgender women, generating significant excitement.

• Seladelpar is set for imminent US launch for PBC, with FDA decision expected August 2024; $320M royalty buyout from Janssen completed.

• Completed $3.9B acquisition of CymaBay Therapeutics; net income for Q2 2024 was $1.6B, up 55% year-over-year.

Financial highlights

• Q2 2024 product sales were $6.9B, up 5% year-over-year; excluding Veklury, sales were $6.7B, up 6% year-over-year.

• HIV product sales reached $4.7B, up 3% year-over-year; Biktarvy sales up 8% to $3.2B; Liver Disease sales up 17% to $832M; Oncology sales up 15% to $841M.

• Trodelvy sales were $320M, up 23% year-over-year; Cell Therapy sales reached $521M, up 11%.

• Non-GAAP operating margin was 47%; GAAP product gross margin was 77.7%; non-GAAP product gross margin was 86%.

• Net cash provided by operating activities for H1 2024 was $3.54B; cash and equivalents at June 30, 2024, were $2.8B.

Outlook and guidance

• Full-year 2024 product sales expected at $27.1B–$27.5B; excluding Veklury, $25.8B–$26.2B.

• Full-year non-GAAP diluted EPS guidance raised to $3.60–$3.90; FY24 non-GAAP EPS guidance increased to $6.85–$7.25.

• HIV product sales expected to grow ~4% for the year; continued focus on disciplined expense management.

• Seladelpar anticipated as an incremental revenue contributor upon approval; $320M royalty buyout to impact Q3 2024 results.