Gilead Sciences (GILD) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 7% year-over-year to $7.5B, led by HIV (up 9%), Oncology (up 6%), and Liver Disease (up 4%), with Biktarvy sales up 13% and non-GAAP EPS at $2.02; GAAP EPS was $1.00, impacted by a $1.8B IPR&D impairment.

• Full-year 2024 guidance was raised for revenue, non-GAAP gross margin, operating income, and EPS, reflecting strong year-to-date performance and pipeline advances including lenacapavir for HIV prevention and Livdelzi for PBC.

• Key pipeline and regulatory milestones included FDA breakthrough therapy designation for lenacapavir, accelerated approval for Livdelzi, and positive Phase 3 data for lenacapavir in HIV prevention.

• Oncology pipeline progressed with promising anito-cel data in multiple myeloma and strategic prioritization of Trodelvy indications; Trodelvy sales up 17% year-over-year.

• Significant events included the $3.9B CymaBay acquisition, $1.8B IPR&D impairment from Trodelvy NSCLC program discontinuation, and $320M Livdelzi royalty buyout.

Financial highlights

• Q3 total product sales were $7.5B, up 7% year-over-year; excluding Veklury, sales were $6.8B, up 7% year-over-year.

• HIV sales reached $5.1B, up 9% year-over-year, led by Biktarvy (+13%) and Descovy (+15%); Oncology sales were $816M, up 6%, with Trodelvy up 17% and Cell Therapy flat.

• Liver disease sales were $733M, up 4% year-over-year; Veklury sales were $692M, up 9% year-over-year.

• Non-GAAP diluted EPS was $2.02, down 12% year-over-year; GAAP diluted EPS was $1.00, down from $1.73, mainly due to IPR&D impairment.

• Product gross margin improved to 87% (non-GAAP) and 79.1% (GAAP); operating margin was 43% (non-GAAP) and 11.8% (GAAP).

Outlook and guidance

• Full-year 2024 product sales guidance raised to $27.8–$28.1B; product sales ex-Veklury expected to grow 5–6% year-over-year.

• Non-GAAP EPS guidance increased to $4.25–$4.45; operating income guidance raised to $8–$8.3B.

• Product gross margin for 2024 projected at ~86% (non-GAAP) and 78% (GAAP); R&D expense expected to decline low single digits.

• HIV sales growth forecast raised to 5% year-over-year; Veklury guidance raised to $1.8B.

• Filing for FDA approval of lenacapavir for HIV prevention planned before year-end.